Question

To ensure quality, customer calls for airline fare quotations are monitored at random. On a particular Thursday afternoon, ticket agent Bob gives 40 fare quotations, of which 4 are incorrect. In a random sample of 8 of these customer calls, which model best describes the number of incorrect quotations Bob will make?

a. Hypergeometric

b. Geometric

c. Binomial

d. Poisson

Answer 1

Answer: c. Binomial

Explanation: A binomial distribution is used when the process is repeated for a fixed number of times with a given probability of success. In this scenario, the 8 customer calls are made and the probability of success is given (such that the probability of incorrect quotations)

Hence the sample size of 8 customer calls will have a binomial distribution with parameters n and p.

where the sample size, n = 8, and the probability of success (incorrect quotation), p = 4/40 = 0.10