A new car salesperson knows that he sells cars to one customer out of 20 who enter the showroom.The probability that he will sell a car to exactly two of the next three customers is:
A) 0.9939
B) 0.0075
C) 0.0071
D) 0.0851
E) 0.1354

Question

Quizplus · Accepted Answer

The probability of selling a car to one customer out of twenty is 1/20 = 0.05.
The probability of not selling a car to one customer out of twenty is 19/20 = 0.95.
Using the binomial distribution, the probability of selling a car to exactly two of the next three customers is:

P(2) = (3 choose 2)*(0.05)^2*(0.95)^1 = 3*0.0025*0.95 = 0.0071

Therefore, the answer is C.

A New Car Salesperson Knows That He Sells Cars to One