Question

A chain of motels had adopted a policy of giving a 3% discount to customers who pay in cash rather than by credit cards. Its experience is that 30% of all customers take the discount. Let Y = the number of discount takers among the next 20 customers.

7) What kind of probability distribution is appropriate in this case?
a) Normal Distribution b) Binomial Distribution c) Poisson Distribution d) Unknown Discrete Probability Distribution

8) Find the probability that exactly 5 of the next 20 customers will take the discount.

a) 0.17 b) 0.20 c) 0.30 d) 0.41

9) Find the probability that 5 or more customers will take the discount.

a) 0.17 b) 0.58 c) 0.76 d) 0.50

10) Find the expected value of Y.

a) 0.6 b) 5 c) 4 d) 6

11) Find the standard deviation of Y.

a) 4.2 b) 6 c) 3 d) 2.04

Answer 1