Question: The widget store manager points out that not all widget brands get equal purchase rates. A brand on premium shelf space has a 0.28 probability


The widget store manager points out that not all widget brands get equal purchase rates. A brand on premium shelf space has a 0.28 probability of being selected by each customer. He is willing to give you premium shelf space at the front of the store for a small fee. The additional fee, plus the original transportation costs, would raise the minimum number of widgets you would have to sell to 40 (to cover transportation costs and additional fee).

Assuming 200 customers come into the store, use a binomial distribution to estimate the probability of at least covering the transportation costs and additional fees. Write your answer as a probability (not a percent) rounded to 4 decimals.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Solution Binomial distribution Given that number of t... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!