A life insurance salesperson makes 15 sales calls daily. The chance of making a sale on each call is 0.40. The probability that he will make at most two sales is less than 0.10.

Question

Quizplus · Accepted Answer

We can use the binomial distribution formula to find the probability of making at most two sales:
P(X ≤ 2) = C(15, 0)(0.40)^0(0.60)^15 + C(15, 1)(0.40)^1(0.60)^14 + C(15, 2)(0.40)^2(0.60)^13
Using a calculator, we get P(X ≤ 2) ≈ 0.088, which is less than 0.10. Therefore, the statement is true.

A Life Insurance Salesperson Makes 15 Sales Calls Daily