Ward Doering Auto Sales is considering offering a special service contract that will coverthe total cost of any service work required on leased vehicles. From experience, the company manager estimates that yearly service costs are approximately normally distributed,with a mean of $150 and a standard deviation of $25.

a. If the company offers the service contract to customers for a yearly charge of $200,

what is the probability that any one customers service costs will exceed the contract

price of $200?

b. What is Wards expected profit per service contract?