Question

David's gasoline station offers 21 cents off per gallon if the customer pays in cash and does not use a credit card. Past evidence indicates that 30% of all customers pay in cash. During a one-hour period, 15 customers buy gasoline at this station. What is the probability that at least 10 pay in cash

Answer 1

0.0931  is the probability that at least 10 pay in cash.

What is a probability simple definition?

The ratio of the number of outcomes in an exhaustive set of equally likely outcomes that produce a given event to the total number of possible outcomes.

Using binomial distribution with n= 15, and p = 0.40,

P(8<X<12) = P(X=9)+P(X=10) + P(X=11)

                 = 0.0612+0.0245+0.0074

                  = 0.0931

Therefore,0.0931  is the probability that at least 10 pay in cash.

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