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) binomial distribution
B) Poisson distribution
C) all of the above
D) none of the above

Question

Quizplus · Accepted Answer

The binomial distribution is used to model the number of successes in a sequence of independent experiments, each of which has a constant probability of success. In this case, the experiments are the 20 new cars sold, and the success is a warranty repair. The probability of success is 0.05, and the number of experiments is 20. Therefore, the binomial distribution is the most likely distribution to be used to analyze warranty repair needs on new cars in this problem.

What Type of Probability Distribution Will Most Likely Be Used