Trevor is interested in purchasing the local hardware/sporting goods store in the small town of Dove...

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Trevor is interested in purchasing the local hardware/sportinggoods store in the small town of Dove Creek, Montana. Afterexamining accounting records for the past several years, he foundthat the store has been grossing over $850 per day about 70% of thebusiness days it is open. Estimate the probability that the storewill gross over $850 for the following. (Round your answers tothree decimal places.)
(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

(e) more than 17 out of the next 20 business days

Answer & Explanation Solved by verified expert

4.3 Ratings (558 Votes)

aLet X be the number of days that the store will gross over 850for 5 business days Then X Binomialn 5 p 07Using Normal approximation of Binomial distribution X followsNormal distribution with mean 5 07 35 and standarddeviation 1024695Probability that at least 3 out of 5 business days See Answer

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