A salesperson who sells an appliance to small businesses calls on 4 potential buyers every day. Based on historical information, the probability of making a sale is 12% for every potential buyer. Potential buyers’ decisions are are assumed to be independent. Let the random variable X be the total count of successful sales that the salesperson makes on a given day. a. What is the probability that the salesperson fails to make any sales on a given day? b. What is the probability that the salesperson makes multiple sales (more than one) on a given day? c. If the selling price of the appliance is $999, what is probability that the revenue from the salesperson’s sales exceeds $1000 on a given day? d. Calculate the expected number and standard deviation of successful sales on a given day. e. Assuming again that the selling price of the appliance is $999, what is the expected revenue from the salesperson’s sales for a 5-day workweek?
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
A salesperson who sells an appliance to small businesses calls on 4
potential buyers every day. Based on historical information, the
Let the random variable X be the total count of successful sales that the salesperson makes on a given day.
a. What is the probability that the salesperson fails to make any sales on a given day?
b. What is the probability that the salesperson makes multiple sales (more than one) on a given day?
c. If the selling price of the appliance is $999, what is probability that the revenue from the salesperson’s sales exceeds $1000 on a given day?
d. Calculate the expected number and standard deviation of successful sales on a given day.
e. Assuming again that the selling price of the appliance is $999, what is the expected revenue from the salesperson’s sales for a 5-day workweek?
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