A venture capital firm has a list of potential investors who have previously invested in
new technologies. On average, these investors invest in about 5% of the opportunities
presented to them. A new client of the firm is interested in finding investors for a 3-D
printing technology for printing semiconductors. An analyst at the firm starts calling
potential investors.
QUESTIONS:
1. How many investors will she have to call, on average, to find someone interested?
2. What is the probability that the number of calls she needs to make before finding
someone interested is 7?