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Cool-Aire Corporation manufactures a line of room air conditioners. Its breakeven sales level is 33,000 units. Sales are approximately normally distributed. Expected sales next year are 38,000 with a standard deviation of 3000 units.
a) Determine the probability that Cool-Aire will incur an operating loss. Find your Z statistic first and then refer to the Z table.
b) Determine the probability that Cool-Aire will operate above its breakeven point. (Hint: The probability of operating above breakeven is one minus your answer above.)
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