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: What is the expected number of cars sold in one week?
a.1
b.1.5
c.2
d.2.5
If you add up all the different tails, you could get 12 tails. Divide 12 by 8 and you have 1.5 which is the average number of tails you could expect to get by flipping 3 coins.
