Residents in an inner city area are concerned about drug dealers
Residents in an inner-city area are concerned about drug dealers entering their neighborhood. Over the past 14 nights, they have taken turns watching the street from a darkened apartment. Drug deals seem to take place randomly at various times and locations on the street and average about three per night. The residents of this street contacted the local police, who informed them that they do not have sufficient resources to set up surveillance. The police suggested videotaping the activity on the street, and if the residents are able to capture five or more drug deals on tape, the police will take action. Unfortunately, none of the residents on this street owns a video camera and, hence, they would have to rent the equipment. Inquiries at the local dealers indicated that the best available rate for renting a video camera is $75 for the first night and $40 for each additional night. To obtain this rate, the residents must sign up in advance for a specified number of nights. The residents hold a neighborhood meeting and invite you to help them decide on the length of the rental period. Because it is difficult for them to pay the rental fees, they want to know the probability of taping at least five drug deals on a given number of nights of videotaping.
a. Which of the probability distributions you have studied might be helpful here?
b. What assumption(s) would you have to make?
c. If the residents tape for two nights, what is the probability they will film at least five drug deals?
d. For how many nights must the camera be rented so that there is at least .90 probability that five or more drug deals will be taped?
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