What type of probability distribution will most likely be used to analyze warranty repair needs on new cars in the following problem? The service manager for a new automobile dealership reviewed dealership records of the past 20 sales of new cars to determine the number of warranty repairs he will be called on to perform in the next 90 days. Corporate reports indicate that the probability any one of their new cars needs a warranty repair in the first 90 days is 0.05. The manager assumes that calls for warranty repair are independent of one another and is interested in predicting the number of warranty repairs he will be called on to perform in the next 90 days for this batch of 20 new cars sold.
A) Poisson distribution
B) binomial distribution
C) hypergeometric distribution
D) none of the above

Question

Quizplus · Accepted Answer

Since each new car either needs or does not need a warranty repair and the probability of success (needing a repair) is constant and independent for each car, the situation can be modeled using a binomial distribution.

What Type of Probability Distribution Will Most Likely Be Used