Question

(All answers were generated using 1,000 trials and native Excel functionality.)

A creative entrepreneur has created a novelty soap called Jackpot. Inside each bar of Jackpot soap is a rolled-up bill of U.S. currency. There are 1,000 bars of soap in the initial offering of the soap. Although the denomination of the bill inside a bar of soap is unknown, the distribution of bills in these first 1,000 bars is given in the following table:

Bill Denomination	Number of Bills
$1	520
$5	260
$10	130
$20	60
$50	29
$100	1
Total	1,000

After the sale of the original 1,000 bars of soap, Jackpot soap went viral, and the soap has become wildly popular. Production of the soap has been ramped up so that now millions of bars have been produced. However, the distribution of the bills in the soap obeys the same distribution as outlined above. On average, how many bars of soap will a customer have to buy before purchasing three bars of soap each containing a bill of at least $20 value? (Hint: Review Appendix 11.1 for descriptions of various types of probability distributions.)

Round your answer to one decimal place.

Answer 1

Answer:-

Given That:-

A creative entrepreneur has created a novelty soap called Jackpot. Inside each bar of Jackpot soap is a rolled-up bill of U.S. currency.

After the sale of the original 1,000 bars of soap, Jackpot soap went viral, and the soap has become wildly popular. Production of the soap has been ramped up so that now millions of bars have been produced. However, the distribution of the bills in the soap obeys the same distribution as outlined above. On average, how many bars of soap will a customer have to buy before purchasing three bars of soap each containing a bill of at least $20 value?

Given,

On average a customer will buy 30.33 bars of soap with less than $20 before having purchased three bars of soap with a $20 or $50 or $100 bill. Therefore, 30.33+ 3 = 33.33 total bars of soap will be purchased on average before the customer obtains 3 bars containing a $20 bill or larger. Consider the data provided in the problem in spreedsheet as shown below.

The model formulation to find the number of bar of soap a customer have to buy in Analysis Solver. Platfrom is as shown below.

Thus, the purchased bars with $20 or $50 or $100 are 3.

Thank you for your supporting. Please upvote my answer...