Reference no: EM1389374
The owner of the Finer Diner submitted a proposal to you in hopes of selling the business to you. His asking price is $250,000. Your financial institution advises that your monthly payment to finance that amount would be $1850.00. This is in addition to other business expenses you would incur such as product, payroll, etc.
Upon reviewing the accounting records from the restaurant, you discover that it grosses roughly $3000 per day on 6 out of 10 days. Determine the estimated probability that the restaurant will gross over $3000:
A) On at least 4 out of 5 business days,
B) On at least 5 out of 10 business days,
C) On at least 7 out of 10 business days.
Summarize your findings in a 350 to 700-word explanation in which you:
Justify whether you would purchase the business or not.
Identify discrete random variables that would contribute to your decision to purchase the business.
Indicate what factors would contribute to you changing your decision.
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