Question

A businessman bought a dealership that is incurring a loss of $500,000 a year. He decided to strategize in order to turn the business 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

A) $4,308
B) $7,179
C) $5,385
D) $10,769
E) $3,590

Answer 1

For this specific problem, the answer would be $7,179. The correct answer between all the choices given is the second choice or letter B. I am hoping that this answer has satisfied your query about and it will be able to help you.