Question
Suppose we are interested in analyzing how many customers will spend over $50 at a certain retailer. Past data reveals that 10% of customers spend
Suppose we are interested in analyzing how many customers will spend over $50 at a
certain retailer. Past data reveals that 10% of customers spend over $50. There are currently 10
customers shopping in the store.
(a) Compute the probability that none of these 10 customers spend over $50.
(b) Compute the probability that of the 10 customers, less than 2 customers spend over $50 or
more than 8 customers spend over $50.
(c) Compute the probability that 10% of these 10 customers spend over $50.
(d) Compute the probability that all 10 customers spend over $50 if we can already see that at
least 8 of the customers will spend over $50.
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