The Smith family wishes to build a new home on a budget of $320,000, and has received estimates for each of the construction components from the General Contractor, as given in the table on the attached document file.

1. What is the probability that the Smiths will exceed their budget of 320K with only the mandatory items?
2. If the Smiths include all three of the optional items, how much would they need to budget to be 90% certain they could meet all costs?

3:27 Pulse X Read Only - Save a copy to edit. Save a copy Mandatory Items Architect $27,000 $40,000 $51,000 Bath Fixtures $7,000 $8,000 $12,000 Built-in Appliances $1,600 $2,000 $3,500 Cabinets $5,000 $6,000 $10,000 Carpeting $4,000 $5,000 $7,000 Doors $3,500 $4,000 $8,000 Excavation $2,500 $2,500 $5,000 Finish Carpentry $7,000 $7,500 $10,000 Finish Hardware $1,250 $1,500 $2,000 Foundation $22,000 $25,000 $30,000 Garage Doors $2,700 $3,000 $4,500 Gas Fireplaces $1,700 $2,000 $3,000 General Contractor $30,000 $40,000 $55,000 Heating and Cooling $10,000 $12,000 $15,000 Insulation $3,750 $4,000 $5,500 Painting $2,750 $3,000 $4,500 Plumbing $6,200 $7,000 $8,500 Roofing $11,500 $12,000 $15,000 Rough Carpentry $90,000 $100,000 $130,000 Windows $16,000 $17,000 $20,000 Wiring $6,000 $6,500 $8,500 Optional Items Countertops $4,000 $6,000 $9,000 Flooring $9,000 $10,000 $13,000 Lighting Fixtures $2,750 $3,000 $6,000