Answer:
(a) Dahl Motors = 8 Cars
Farthington Auto Sales = 7 Cars
(b) Roger will purchase from Farthington Auto Sales with higher weekly profit
Step-by-step explanation:
Dahl Motors / Week
(1) Car Sold 5 6 7 8 9 10 11 12
(2) Probability 5% 9% 14% 24% 18% 14% 11% 5%
(3) (2 x 3 ) 0.25 0.54 0.98 1.92 1.62 1.40 1.21 0.60
(4) Average sales = 0.25 + 0.54 + 0.98 + 1.92 + 1.62 + 1.40 + 1.21+0.60
= 8.52 cars/ week
= 8 cars /week
Profit/ Car = $544
Total weekly profit = 544 x 8
= $4,352
Farthington Auto Sales/ Week
(1) Car Sold 5 6 7 8 9 10
(2) Probability 8% 21% 31% 24% 10% 6%
(3) (2 x 3 ) 0.40 1.26 2.17 1.92 0.9 0.6
(4) Average sales = 0.40 + 1.26 + 2.17 + 1.92 + 0.90 + 0.60
= 7.25 cars/ week
= 7 cars/week
Profit/ Car = $651
Total weekly profit = 651 x 7
= $4,557
From the calculations above , Roger will purchase from Farthington Auto Sales
