20 of customers coming to a dealership will buy a car Assumi

20% of customers coming to a dealership will buy a car. Assuming customers are independent of each other, we are interested in the probability the next person walking in will buy a car.

1) Define the Random Variable

2) Distribution, parameter(s) and support

3) Probability statement for this scenario

Solution

p = Prob of any customer buying a car = 0.29

1) The random variable X will be a Geometric distribution with x-1 negative and xth trial positive.

2) Geometric distribution

3) P(X=x) = P(x-1 trials negative and xth trial positive)

= 0.80^x-1(0.20)