20. Conservative Spenders A USA Today snapshot shows that 60% of consumers say they have become more conservative spenders. When asked “What would you do first if you won $1 million tomorrow?”

the answers had to do with somewhat conservative measures like “hire a financial adviser,” or “pay off my credit card,” or “pay off my mortgage.” Suppose a random sample of n515 consumers is selected and the number x of those who say they have become conservative spenders recorded.

a. What is the probability that more than six consumers say they have become conservative spenders?

b. What is the probability that fewer than five of those sampled have become conservative spenders?

c. What is the probability that exactly nine of those sampled are now conservative spenders.

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0 5 What Would You Do First If You Won $1 Million Tomorrow? 35 32% 30 25 20 20 15 10 16% 16% Adviser Hire a Financial Pay Off My Credit Card Debt Pay Off My Mortgage 60% of consumers say they have become more conservative spenders