A certain company plans to sell Product X for p dollars per unit, where p is randomly chosen from all possiblepositive values not greater than 100. The monthly manufacturing cost for Product X (in thousands of dollars)is 12 - p, and the projected monthly revenue from Product X (in thousands of dollars) is p(6 - p). If the projected revenue is realized, what is the probability that the company will NOT see a profit on sales ofProduct X in the first month of sales?a)0b)1/100c)1/25d)99/100e)1Correct answer is option 'D'. Can you explain this answer?

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A certain company plans to sell Product X for p dollars per unit, where p is randomly chosen from all possible positive values not greater than 100. The monthly manufacturing cost for Product X (in thousands of dollars) is 12 - p, and the projected monthly revenue from Product X (in thousands of dollars) is p(6 - p). If the projected revenue is realized, what is the probability that the company will NOT see a profit on sales of Product X in the first month of sales?

a)
0
b)
1/100
c)
1/25
d)
99/100
e)
1

Correct answer is option 'D'. Can you explain this answer?

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A certain company plans to sell Product X for p dollars per unit, wher...

In order to realize a profit, the company's revenue must be higher than the company's costs. We can express this as an inequality using the information from the question:

If we distribute and move all terms to one side, we get:

We can factor this result:

When the value of p makes this inequality true, we know we will have a profit. When the value of p does NOT make the inequality true, we will not hav e a profit. When p equals 3 or 4, the product is zero. So the values of p that will make the inequality true (i.e., will yield a negative product) must be either greater than 4, less than 3, or between 3 and 4. To determine which is the case, we can test a sample value from each interval.
If we try p = 5, we get:

Since 2 is positive, we know that values of p greater than 4 will not make the inequality true and thus will not yield a profit.
If we try p = 2, we get:

Since 2 is positive, we know that the values of p less than 3 will not make the inequality true and thus will not yield a profit.
If we try p = 3.5, we get:

Since -.25 is negative, we know that values between 3 and 4 will make the inequality true and will thus yield a profit. Since p can be any positive value less than 100 (we cannot have a negative price or a price of zero dollars), there are 100 possible intervals between consecutive integer values of p. The interval 3 < p < 4 is just one. Therefore, the probability that the comp any will realize a profit is 1/100 and the probability that it will NOT realize a profit is 1 - 1/100 or 99/100.

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A certain company plans to sell Product X for p dollars per unit, where p is randomly chosen from all possiblepositive values not greater than 100. The monthly manufacturing cost for Product X (in thousands of dollars)is 12 - p, and the projected monthly revenue from Product X (in thousands of dollars) is p(6 - p). If the projected revenue is realized, what is the probability that the company will NOT see a profit on sales ofProduct X in the first month of sales?a)0b)1/100c)1/25d)99/100e)1Correct answer is option 'D'. Can you explain this answer?

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A certain company plans to sell Product X for p dollars per unit, where p is randomly chosen from all possiblepositive values not greater than 100. The monthly manufacturing cost for Product X (in thousands of dollars)is 12 - p, and the projected monthly revenue from Product X (in thousands of dollars) is p(6 - p). If the projected revenue is realized, what is the probability that the company will NOT see a profit on sales ofProduct X in the first month of sales?a)0b)1/100c)1/25d)99/100e)1Correct answer is option 'D'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about A certain company plans to sell Product X for p dollars per unit, where p is randomly chosen from all possiblepositive values not greater than 100. The monthly manufacturing cost for Product X (in thousands of dollars)is 12 - p, and the projected monthly revenue from Product X (in thousands of dollars) is p(6 - p). If the projected revenue is realized, what is the probability that the company will NOT see a profit on sales ofProduct X in the first month of sales?a)0b)1/100c)1/25d)99/100e)1Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A certain company plans to sell Product X for p dollars per unit, where p is randomly chosen from all possiblepositive values not greater than 100. The monthly manufacturing cost for Product X (in thousands of dollars)is 12 - p, and the projected monthly revenue from Product X (in thousands of dollars) is p(6 - p). If the projected revenue is realized, what is the probability that the company will NOT see a profit on sales ofProduct X in the first month of sales?a)0b)1/100c)1/25d)99/100e)1Correct answer is option 'D'. Can you explain this answer?.

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