trevor is interested in in purchasing the local hardwarespor

trevor is interested in in purchasing the local hardware/sporting goods store in the small town of Dove Creek, Montana. after examining accounting records for the past several years , he found the store has been grossing over $850 per day about 70% of the business day it is open. estimate the probability that the store will gross over $850 fewer than 6 out of the next 20 business days

Solution

Answer to the question)

p = 0.70 or 70%

total number of days n = 20

We need to find P(x<6) = P(x=0)+P(x=1)+P(x=2)+P(x=3)+P(x=4)+P(x=5)

the formula of binomial probability helps us calculate each of the values idnividually

P(X=x) = nCx * p^x * (1-p)^n-x

.

We cna either plug in each of the vlaues , and calculate the 5 values separately

ro else make use of technology to find the final answer

I have made use of excel command

=binomdist(5,20,0.70,1)

=0.00004294