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 40% of all customers pay in cash. During a one-hour period twenty-five customers buy gasoline at this station.
-This situation is an example of what type of discrete probability distribution?
A)Continuous probability distribution
B)Poisson probability distribution
C)Binomial probability distribution
D)Hypergeometric probability distribution

Question

Quizplus · Accepted Answer

This situation follows a binomial probability distribution because there are only two possible outcomes (paying with cash or not) and each trial is independent with a constant probability of success (40%). The number of customers buying gasoline in a one-hour period (25) is fixed and known, making it a binomial distribution rather than a Poisson or hypergeometric distribution.

David's Gasoline Station Offers 4 Cents Off Per Gallon If