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Linda is considering opening a bed and breakfast inn near Santa Fe, New Mexico. She thinks that the number of prospective guests per year follows an approximately normal distribution with mean u = 1600 and population standard deviation = 400.
(a) She has estimated revenue and expenses and determined that she will break even if she has at least 1000 guests per year. Find the probability that Linda will break even.
(b) In order to make a profit of $40,000 per year, she will need at least 2,100 guests. Calculate the probability that Linda will make a profit of at least $40,000 per year.
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