Question
Suppose a Costo store estimates that the probability a random customer is there to return a purchase is 0.11. This can be expressed as P(customer
Suppose a Costo store estimates that the probability a random customer is there to return a purchase is 0.11. This can be expressed as P(customer returns a purchase) = 0.11. Assume each customer is independent of other customers.
a. Interpret the probability stated above as a long run relative frequency.
b. You want to estimate the probability that exactly three of the next ten customers are at the store to return a purchase. Describe the design of a simulation to estimate this probability. Explain clearly how you will use a random number generator to carry out your simulation.
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