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The Local Ford Dealership Claims 40% of Its Customers Are

Question 91

Essay

The local Ford dealership claims 40% of its customers are return buyers, meaning that the customers have previously purchased a Ford vehicle. Let the random variable x be the number of return buyers in a random sample of 10 recent customers.
a. Find P(1 < x < 5).
b. Find P(x > 6).
c. What would you conclude about the accuracy of the dealership's claim if you found nine repeat buyers in the sample? Explain your reasoning.

Correct Answer:

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a. 0.627
b. 0.166
c. There is ...

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