Question

Steele Electronics Inc. sells expensive brands of stereo equipment in several shopping malls. The marketing research department of Steele reports that 39% of the customers entering the store that indicate they are browsing will, in the end, make a purchase. Let the last 28 customers who enter the store be a sample.

a. How many of these customers would you expect to make a purchase? (Round the final answer to the nearest whole number.)

Number of Customers            

b. What is the probability that exactly seven of these customers make a purchase? (Round the final answer to 4 decimal places.)

Probability            

c. What is the probability 17 or more make a purchase? (Round the final answer to 4 decimal places.)

Probability            

d. Does it seem likely at least one will make a purchase ("likely" refers if the probability is more than 70%)?

(Click to select)  Yes  No

Answer 1

a)

We have to find the customers expect to make purchase

P=0.39

Q=1-P=1-0.39=0.61

Expected number of purchase=n*p=28*0.39=10.92 approximately 11

b)

Probability that exactly 7 customers will make purchase

c)

Probabability that 17 or more make a purchase

d)

Probabibility that at least one will make purchase

Yes it will be likely