1. Mark has stated his own company, which sells used cars in Lynn. Since he has just begun this business, he rents storage and a parking lot in order to operate the business. The cost of rental is $7500 per month. There are other expenses which include utilities, phone, and insurance are a total $3,800 per month. The towing fee, registration and inspection fee incur when the transaction is completed. The variable cost of each car is around $1,100. Suppose Mark buys the car at $15000 and sell for $20,000, how many car should he sell to get the breakeven point?

2. Mark estimates that the average sale of the cars is 30(mean) cars per month and the standard deviation is 5(standard deviation) cars. Sales follow a normal distribution.

What is the probability that sales will be greater than 40 cars?

What is the probability that sales will be less than 26?

3. Mark faces two states of nature exist for a particular situation: a good market and a poor market. A market study may be performed to obtain more information about which of these will actually occur in the upcoming year. The study may forecast either good market or a pro market. Currently there is a 65% chance that the economy will be good and a 35% chance that will be poor. In the past, whenever the market was poor, the market study predicted it would be poor 90% of the time. (The other 10% of the time the prediction was wrong.)