A car manufacturer is concerned about poor customer satisfaction at one of its d

Question

A car manufacturer is concerned about poor customer satisfaction at one of its dealerships. The management decides to evaluate the satisfaction surveys of its next 60 customers. The dealer will be fined if the number of customers who report favorably is between 40 and 44. The dealership will be dissolved if fewer than 40 report favorably. It is known that 72% of the dealer’s customers report favorably on satisfaction surveys. Use Table 1. a. What is the probability that the dealer will be fined? (Round intermediate calculations to 4 decimal places, “z” value to 2 decimal places, and final answer to 4 decimal places.) Probability b. What is the probability that the dealership will be dissolved? (Round intermediate calculations to 4 decimal places, “z” value to 2 decimal places, and final answer to 4 decimal places.) Probability

Explanation / Answer

mean = 0.72*60 = 43.2

SD = srqt ( 0.72*0.60*0.28 ) = 3.48

a)

P( 40 - 43.2 / 3.48 < z < 44 - 43.2 / 3.48 )

P( -0.92 < z < 0.23 ) = 1 - 0.1788 - 0.4090 = 0.4122

b)

P( z < 40 - 43.2 / 3.40 )

P( z < -0.92 ) = 0.1788

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