Two movie theaters compete for the business of 1,000 customers. Assume that each customer chooses between the

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Two movie theaters compete for the business of 1,000 customers. Assume that each customer chooses between the movie theaters independently and with "indifference." Let N denote the number of seats in each theater.
(a) Using a binomial model, find an expression for N that will guarantee that the probability of turning away a customer (because of a full house) is less than 1%.
(b) Use the normal approximation to get a numerical value for N.
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Statistical Inference

ISBN: 978-0534243128

2nd edition

Authors: George Casella, Roger L. Berger

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