Question: Coffee and doughnuts. At a certain coffee shop, all the customers buy a cup of coffee; some also buy a doughnut. The shop owner believes that the number of cups he sells each day is normally distributed with a mean of 320 cups and a standard deviation of 20 cups. He also believes that the number of doughnuts he sells each day is independent of the coffee sales and is normally distributed with a mean of 150 doughnuts and a standard deviation of 12.
a) The shop is open every day but Sunday. Assuming day-to-day sales are independent, what's the probability he'll sell over 2000 cups of coffee in a week?
b) If he makes a profit of 50 cents on each cup of coffee and 40 cents on each doughnut, can he reasonably expect to have a day's profit of over $300? Explain.
c) What's the probability that on any given day he'll sell a doughnut to more than half of his coffee customers?