Question

In: Statistics and Probability

Auto Repair Insurance. A person calls people to ask if they would like to extend their...

Auto Repair Insurance. A person calls people to ask if they would like to extend their automobile insurance beyond the normal 3 years. The probability that the respondent says yes is about 33%. If she calls 12 people, find the probability that the first person to say yes will occur with the fourth customer.

Solutions

Expert Solution

p = 0.33

4th customer is the 1st one to yes. So, first 3 no and then yes

q = 1 - 0.33 = 0.67

P(4th is 1st one to say yes) = 0.67*0.67*0.67*0.33 = 0.09925179

In general we need to round off to 4 decimal places hence 0.0993 or 0.09925179 is the answer.

Please comment if any doubt.

orchestra answered 2 years ago
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