What are the chances that Captain Jack Automobiles will show a cumulative net profit in the fourth year?
A)approximately 23.36%
B)approximately 62.04%
C)approximately 37.68%
D)approximately 76.64%

Question

Quizplus · Accepted Answer

The cumulative net profit for the first three years is -$50,000 + $30,000 + $80,000 = $60,000. To show a cumulative net profit in the fourth year, the company would need to earn more than $60,000 in profits. The total revenue for the fourth year is projected to be $400,000 with total expenses of $300,000, resulting in a net profit of $100,000. Therefore, the chances of Captain Jack Automobiles showing a cumulative net profit in the fourth year would be approximately 37.68% (calculated by finding the probability of earning more than $60,000 in profits given a mean profit of $100,000 and a standard deviation of $50,000 for the fourth year).

What Are the Chances That Captain Jack Automobiles Will Show