You plan to open a new pizza restaurant and found out the data for a similar restaurant which is presented below.

Question

You plan to open a new pizza restaurant and found out the data for a similar restaurant which is presented below.

amount - percentage

$40000 - 10% loss

$0 - 35%

$40000 - 45% profit

$200000 - 10% profit

Are you going to proceed with your plan to open a new pizza restaurant? If yes, what will be your expected profit at the end of the year? If not, explain why not.

Is $34,000 the correct answer?

Answer 1

Hi Music S.,

Something doesn't add up, so to speak!, in this problem. Are we being given a time series, such as, yearly profits for the first 4 year time points? Doesn't look like it, since there was $0 in sales for year 2 (and 35% of something, but is it a loss or a gain??). (What, the Mafia rented it out for the entire year, you didn't lose, you didn't gain, but you ain't complaining?). And it's not a well-behaved function, since on $40000 of sales?? there was both a 10% loss and a 45% profit on successive time points. And, why are profits so high, 45% on $40000 on year 3, but only 10% on $200000 sales in year 4? I guess maybe the Mafia put a little squeeze on, in year 4?

You know what I think? The problem is, the data are in a table. They should have been in a PIE CHART. Heh, heh.

Seriously, either the data were mistranscribed, or portions of the problem were left out. No solution possible here.

-- Cheers, --Mr. d.