Question

A company is running adds on the internet. The probability of a reader of the add clicking on it is 0.81 and the probability that the clicking reader buys the product is 0.45. What is the probability of selling 6 or more products after displaying 10 ads?

Answer 1

P(selling a product on displaying an ad) = P(reader clicking) x P(the reader than clicked buying)

= 0.81 x 0.45

= 0.3645

Binomial distribution: P(X) = nCx p^x q^n-x

Number of trials, n = 10

P(success), p = 0.3645

q = 1 - p = 0.6355

P(selling 6 or more products after displaying 10 ads) = P(6) + P(7) + P(8) + P(9) + P(10)

= 10C6x0.3645⁶x0.6355⁴ + 10C7x0.3645⁷x0.6355³ + 10C8x0.3645⁸x0.6355² + 10x0.3645⁹x0.6355 + 0.3645¹⁰

= 0.08033 + 0.02633 + 0.00566 + 0.00072 + 0.00004

= 0.11308