A businessman bought a dealership that is incurring a loss of $500,000 a year. He decided to strategize in order to turn the bus
iness around. In addition to the $500,000 annual loss, his fixed cost for running the dealership on a monthly basis is $5,000. The number of cars sold per week and their probabilities mimic the outcomes of three coins being flipped. The number of cars sold in a week was observed to be the same as the number of tails that appear in a three coin flip. See the distribution:. Number of Tails 0 |1 |2 |3. probablity 1/8 | 3/8 | 3/8 | 1/8
