Enquiries at a travel agent lead to a holiday booking being made only sometimes. The agent needs to make 35 bookings per week to break even. If during a week there are 100 enquiries and the probability of a booking in each case is 0.4, find the probability that the agent will at least break even in this particular week. To solve this problem let X represent the number of bookings per week, p represent the probability that a booking will be made p = 0.4, and n represent the number of possible bookings over the week, n = 100.

The area shaded in Figure 4.40 is a normal approximation of the binomial probability of obtaining at least 35 bookings.

We can see that the binomial probability distribution solution, P(X ≥ 35) _Binomial ≈ 1 − P (X ≤ 34.5) _Normal

Transcribed Image Text:

34.5 35 Normal curve f(x) 40 P(X=> 34.5) = 0.86921388 X Binomial, X Figure 4.40