Fifty percent of the customers who go to Sears Auto Center for tires buy four ti

Question

Fifty percent of the customers who go to Sears Auto Center for tires buy four tires and 30% buy two tires. Moreover 18% buy fewer than two tires, with 5% buying none. a. What is the probability that a customer buys three tires? b. Construct a cumulative probability distribution for the number of tires bought. An electronics store sells additional warranties on its Blu-ray players. Twenty percent of the buyers buy the limited warranty for $25 and 5% buy the extended warranty for $60. What is the expected revenue for the store if it sells 120 players? Fourty-four percent of consumers with credit cards carry balances form month to month (bankrate.com. February 20, 2007). Four consumers with credit cards are randomly selected. a. What is the probability that all consumers carry a credit card balance? b. What is the probability that fewer than two consumers carry a credit card balance? c. Calculate the expected value, the variance, and the standard deviation for this binomial distribution.

Explanation / Answer

(4)

As per the data given, following are the probabilities:

4 tires: 0.50

3 tires: 0.02

2 tires: 0.30

1 tire: 0.13

No tire: 0.05

(a)

Probability that a customer buys three tires = 0.02

(b)

The cumulative plot is:

Hope this helps !

Only 1 question is allowed per chegg question so I have answered the first one for you !

Number of tires Cumulative prob. 0 0.05 <=1 0.18 <=2 0.48 <=3 0.50 <=4 1.0

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