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a. P(HCM) = (1200/30^3)/[(1200/30^3)+(800/45^3)+(1000/50^3)] = 0.

7259
P(BH) = (1200/55^3)/[(1200/55^3)+(1000/30^3)+(800/30^3)] = 0.0976
Expected sales of the new store
$3 x 0.7259 + $2 x 0.0976 = $2,372,900
b.
The average monthly sale is more than $160,000 ($2,372,900), so we will open new
store in proposed location.

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