Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A car dealer organizes a new promotional campaign. Buyers of new cars can return them within 2 days if they are not satisfied and get

A car dealer organizes a new promotional campaign. Buyers of new cars can return them within 2 days if they are not satisfied and get all the money paid back. The cost to the dealer for the refund is $250. The dealership estimates that 15 percent of all buyers will return the cars and get their money back. Suppose 50 cars are purchased during the campaign.

a) Calculate the probability distribution of the number of cars returned.

b) What is the probability that 5 or more cars are returned?

c) What is the probability that 10 or more cars are returned?

d) What is the probability that 25 or more cars are returned?

e) Find the mean and standard deviation of the number of cars that will be returned in exchange for the money.

f) Find the mean and standard deviation of the total costs of paying back the money for these 50 purchases.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Variational Inequalities And Frictional Contact Problems

Authors: Anca Capatina

1st Edition

3319101633, 9783319101637

More Books

Students also viewed these Mathematics questions

Question

What are the APPROACHES TO HRM?

Answered: 1 week ago

Question

Do not come to the conclusion too quickly

Answered: 1 week ago

Question

Engage everyone in the dialogue

Answered: 1 week ago