Question

A businessman bought a car 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 when three coins are flipped. See the distribution:

Number of Tails 0 1 2 3
Probability 1/8 3/8 3/8 1/8

Answer 1

@cj49

Answer 2

GIVING MEDAL!!!

Answer 3

wat r d options

Answer 4

Given that there are 52 weeks in a year, what is the expected revenue per car (rounded to the nearest dollar) that has to be made in order to break even in the first year?
$4,308
$7,179
$5,385
$10,769
$3,590

Answer 5

5000*12 = 60 000 for the year, add in the loss we get
560 000 divided by 52 gives a weekly break even amt: 10 770
the expected probability.
0(1/8)+1(3/8)+2(3/8)+3(1/8)=12/8=1.5

he sells 1.5 cars on average per week.

10770/1.5 = 7180

Answer 6

thanks!!