Question

Steve Smith is a car sales agent at a Ford dealership. He earns a salary and benefits, but a large portion of his income comes from commissions: $350 per vehicle sold for the first five vehicles in a month and $400 per vehicle after that. Steve's historical sales can be well described with a Poisson distribution with mean 5.5; that is, on average, Steve sells 5.5 vehicles per month. On average, how much does Steve earn in commissions per month?


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  • CreatedMarch 31, 2015
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