Question

A company's sales force makes 500 sales calls, with 0.18 probability that a sale will be made on a call. What is the probability that less than 85 sales will be made? Enter your answer as a decimal value, rounded to 4 decimal places.

Answer 1

Total number of sales calls made = n = 500

Probability that a sale will be made on a call = p = 0.18

Let X be the number of sales made.

Since, the number of calls made is quite big we will use Normal Approximation to Binomial Distribution.

X ~ N(mean = np, variance = np(1-p))

We have to find probability of X such that less than 85.

Therefore,

Probability that less than 85 sales will be made = 0.2810.

z value table -