Trevor is interested in purchasing the local hardware/sporting goods store in the small town of Dove Creek, Montana. After examining accounting records for the past several years, he found that the store has been grossing over $850 per day about 60% of the business days it is open. Estimate the probability that the store will gross over $850:
(a) At least 3 out of 5 business days.
(b) At least 6 out of 10 business days.
(c) Fewer than 5 out of 10 business days.
(d) Fewer than 6 out of the next 20 business days. If this actually happened, might it shake your confidence in the statement p = 0.60? Might it make you suspect that p is less than 0.60? Explain.
(e) More than 17 out of the next 20 business days. If this actually happened, might you suspect that p is greater than 0.60? Explain.
The binomial distribution will be used. Answers may vary slightly depending on whether the binomial distribution formula, the binomial distribution table, or distribution results from a calculator or computer are used. Please answer the following questions and then complete the problem: What makes up a trial? What is a success? What is a failure? What are the values of n, p, and q?