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Use the following to answer the next three questions. David\'s gasoline station

ID: 3156377 • Letter: U

Question

Use the following to answer the next three questions.

David's gasoline station offers 4 cents off per gallon if the customer pays in cash and does not use a credit card. Past evidence indicates that 35% of all customers pay in cash. During a one-hour period 25 customers buy gasoline at this station.

1. What is the probability that exactly 10 pay in cash?

2. What is the probability that between four and eight, inclusive, customers pay in cash?

3. What is the probability that more than ten and less than fifteen customers pay in cash?

Explanation / Answer

David's gasoline station offers 4 cents off per gallon if the customer pays in cash and does not use a credit card. Past evidence indicates that 35% of all customers pay in cash. During a one-hour period 25 customers buy gasoline at this station.

P( x=10) =0.1409

P( 4x8) = P( x=4)+P( x=5)+ P( x=6)+P( x=7)+P( x=8)

=0.0224+0.0506+0.0908+0.1327+0.1607

=0.4571

3. What is the probability that more than ten and less than fifteen customers pay in cash?

P( 10 <x<15) = P( x=11)+P( x=12)+ P( x=13)+P( x=14)

=0.1034+0.0650+0.0350+0.0161

=0.2195

p=0.35, n=25

P(X=x) = (nCx) px (1-p)n-x

Binomial Probabilities Table

X

P(X)

0

0.0000

1

0.0003

2

0.0018

3

0.0076

4

0.0224

5

0.0506

6

0.0908

7

0.1327

8

0.1607

9

0.1635

10

0.1409

11

0.1034

12

0.0650

13

0.0350

14

0.0161

15

0.0064

Binomial Probabilities Table

X

P(X)

0

0.0000

1

0.0003

2

0.0018

3

0.0076

4

0.0224

5

0.0506

6

0.0908

7

0.1327

8

0.1607

9

0.1635

10

0.1409

11

0.1034

12

0.0650

13

0.0350

14

0.0161

15

0.0064

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