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. What is the probability that no more than twenty pay in cash?
A) 0.0
B) 0.1
C) 0.9
D) 1.0

Question

Quizplus · Accepted Answer

The probability that no more than twenty out of twenty-five customers pay in cash is very high, given that only 40% of customers typically pay in cash. This makes it almost certain (probability of 1.0) that no more than twenty will pay in cash.

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