The Masterfoods Company Manufactures Bags of Peanut Butter M&M's

question 4

Essay

The Masterfoods company manufactures bags of Peanut Butter M&M's. They report that they make 10% each brown and red candies, and 20% each yellow, blue, and orange candies. The rest of the candies are green.
a. If you pick a Peanut Butter M&M at random, what is the probability that i. it is green?
ii. it is a primary color (red, yellow, or blue)?
iii. it is not orange?
b. If you pick four M&M's in a row, what is the probability that i. they are all blue?
ii. none are green?
iii. at least one is red?
iv. the fourth one is the first one that is brown?
c. After picking 10 M&M's in a row, you still have not picked a red one. A friend says that
you should have a better chance of getting a red candy on your next pick since you have
yet to see one. Comment on your friend's statement.

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Definitions:

Break-even Point

The point at which total revenue equals total costs, resulting in no profit and no loss for the business.

Sales Dollars

This term represents the total amount of revenue a company generates from the sale of its goods or services, expressed in dollars.

Operating Leverage

A measure of how a company's operating income responds to changes in sales volume, highlighting the impact of fixed costs on profitability.

Budgeted Sales

The amount of revenue that a company plans or expects to generate from the sale of goods or services during a specific period.