Best Buy has conducted extensive surveys of its customers, and these have shown

Question

Best Buy has conducted extensive surveys of its customers, and these have shown that 45 percent of the customers entering a Best Buy store’s television department, will purchase an LCD television, 15 percent a supersized plasma display, and 40 percent will be “showrooming” (that is, examining the merchandise in the Best Buy store but purchasing more cheaply online). Given these numbers, Best Buy has decided on a new strategy of encouraging customers to use Best Buy locations as their showroom, no matter where they buy the product, and then competing on price, high quality service from the sales associates, and the convenience of immediate gratification to capture the sale once the customer is in the store. If on a given day, of the next five customers to enter a Best Buy store television department, what is the probability that they will purchase that day from Best Buy exactly 2 LCD and 1 plasma displays?

Explanation / Answer

what is the probability that they will purchase that day from Best Buy exactly 2 LCD and 1 plasma displays?

Probability will be 0.45^2 * 0.15^1 = 0.030375

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