Answered step by step
Verified Expert Solution
Question
1 Approved Answer
6. [Foopon] Foopon, a company that offers daily coupon deals, has the following business arrangement with a restaurant. A coupon for a $40 meal can
6. [Foopon] Foopon, a company that offers daily coupon deals, has the following business arrangement with a restaurant. A coupon for a $40 meal can be purchased by a consumer for $20 from Foopon, and the restaurant and Foopon split the $20 equally. Foopon sends an email message to a list of 100 potential consumers, who act independently, each of whom decides to buy a coupon with probability 0.1. The deal is "on" if at least 10 consumers decide to purchase a coupon. If only 9 or fewer consumers decide to purchase a coupon, then the deal is "of" and no coupons are sold. (a) What is the probability that the deal is "on"? Hint: When you compute summations involving binomial codficients on a computer, you may run into numerical precision issues when a is large and p is small as it is in this problem. To avoid these numerical issues, you may want to compute the probability that the deal isnot "on" first
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started