David's gasoline station offers 4 cents off per litre 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. This situation is an example of what type of discrete probability distribution?
A) Continuous probability distribution
B) Poisson probability distribution
C) Binomial probability distribution
D) Hypergeometric probability distribution

Question

Quizplus · Accepted Answer

This situation involves a fixed number of trials (25 customers), each trial has two possible outcomes (pay in cash or not), and the probability of success (paying in cash) is fixed at 0.4. This fits the criteria for a binomial probability distribution.

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