An automobile dealer owns two dealerships that are located 500 miles apart. Auto sales at each location are independent of sales at the other. Probabilities of high, normal and low sales in each region next quarter are as follows: Sales Level Location A Location B High .3 .4 Normal .4 .4 Low .3 .2 The probability that both locations will have high sales next quarter is (E) a. 35% b. 10% c. 15% d. 12%

An automobile dealer owns two dealerships that are located 500 miles apart. Auto sales at each location are independent of sales at the other. Probabilities of high, normal and low sales in each region next quarter are as follows: Sales Level Location A Location B High .3 .4 Normal .4 .4 Low .3 .2 The probability that both locations will have high sales next quarter is (E) a. 35% b. 10% c. 15% d. 12%

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter12: Corporate Valuation And Financial Planning

Section: Chapter Questions

Problem 2STP

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