Explanation Given info: A warehouse club offers 2 types of memberships- regular membership, R for a low annual fee and upgraded membership, U for a higher annual fee and having additional benefits such as extended shopping hours, additional discounts, cashbacks, etc. The warehouse has 20% of its members with upgraded membership. They wish to increase the number of upgraded members and stations sales associates at the entrance of the store to explain the benefits of an upgraded membership. At a certain time point, 5 customers enter the store. As each of the customers has either an upgraded membership ( U ) or a regular membership ( R ), there are 2 5 = 32 combinations of memberships that are possible, among the 5 customers. Justification: The possible number of customers with upgraded membership ( U ) may be 0 or 1 or 2 or 3 or 4 or 5. As a result, the possible number of customers with regular membership ( R ) may be 5 or 4 or 3 or 2 or 1 or 0, respectively. The number of ways there may be 0 upgraded members ( U ) or 5 regular members ( R ) is ( 5 0 ) = 1 . The 1 possible combination is: RRRRR . The number of ways there may be 1 upgraded member ( U ) or 4 regular members ( R ) is ( 5 1 ) = 5 . The 5 possible combinations are: URRRR, RURRR, RRURR, RRRUR, RRRRU . The number of ways there may be 2 upgraded members ( U ) or 3 regular members ( R ) is ( 5 2 ) = 10 . The 10 possible combinations are: UURRR, URURR, URRUR, URRRU, RUURR, RURUR, RURRU, RRUUR, RRURU, RRRUU . The number of ways there may be 3 upgraded members ( U ) or 2 regular members ( R ) is ( 5 3 ) = 10

Statistics for Business and Economics (13th Edition)

13th Edition

ISBN: 9780134506593

Author: James T. McClave, P. George Benson, Terry Sincich

Publisher: PEARSON

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Chapter 4, Problem 4.1.3A

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To list: The 32 possible combinations of membership types among the customers.

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Chapter 4 Solutions

Statistics for Business and Economics (13th Edition)

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The 32 possible combinations of membership types among the customers.

Solution Summary: The author lists the 32 possible combinations of membership types among the 5 customers. The warehouse club has 20% of its members with upgraded membership.

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To list: The 32 possible combinations of membership types among the customers.

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