Reference no: EM132515885

Ethan owns an electronics store. Based on a number of factors including weather, day of the week and the occurrence of national sporting events, Ethan has constructed the following probability distribution of customers that will come into his store during the weekend:

Number of customers                  Probability

300                                           10%

400                                           20%

500                                           35%

600                                           20%

700                                           10%

800                                             5%

A higher percentage of customers make a purchase when there are fewer customers in the store. Ethan estimates that 80% of the customers will purchase goods when there are 300 or fewer customers in the store during the weekend. The number of customers that will make a purchase drops by 4% for every 100 customers. The average sale is $90 per customer. Profit margin is 12% on all sales.

Question 1: How much profit can Ethan expect from weekend sales?

a) $3,900.96

b) $5,562.00

c) $32,508.00

d) $46,350.00