Question
On any given day, a car dealership sells 0, 1, 2, 3, or 4 cars with probabilities 0.05, 0.20, 0.25, 0.40, 0.10 respectively. (They never
On any given day, a car dealership sells 0, 1, 2, 3, or 4 cars with probabilities 0.05, 0.20, 0.25, 0.40, 0.10 respectively. (They never sell more than 4 cars). Suppose they make a profit of $3500 from each car sold, but they have a fixed cost of $1700 per day for rent and salaries. Let the random variable Y = the net profit per day. (i.e., the profit from the sales of cars minus fixed cost).
a) Construct the probability distribution table for Y.
b) Calculate E(Y), and explain what it means. [3 marks]
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Get StartedRecommended Textbook for
Essentials Of Business Statistics
Authors: Bruce Bowerman, Richard Connell, Emily Murphree, Burdeane Or
5th Edition
978-1259688867, 1259688860, 78020530, 978-0078020537
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