Bill Price is a sales rep in northern California representing a line of athletic socks. Each day, he makes 10 sales calls. The chance of making a sale on each call is thought to be 0.30. The probability that he will make exactly two sales is approximately 0.2335.

Question

Quizplus · Accepted Answer

This scenario can be modeled using the binomial probability formula, which is P(X = k) = (n choose k) * p^k * (1-p)^(n-k), where n is the number of trials (in this case, sales calls, which is 10), k is the number of successes (sales made, which is 2), and p is the probability of success on each trial (0.30). Plugging these values into the formula gives a probability of approximately 0.2335 for making exactly two sales, confirming the statement is true.

Bill Price Is a Sales Rep in Northern California Representing