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A supplier of heavy construction equipment has found that
Chapter 3, Problem 209SE(choose chapter or problem)
Problem 209SE
A supplier of heavy construction equipment has found that new customers are normally obtained through customer requests for a sales call and that the probability of a sale of a particular piece of equipment is .3. If the supplier has three pieces of the equipment available for sale, what is the probability that it will take fewer than five customer contacts to clear the inventory?
Questions & Answers
QUESTION:
Problem 209SE
A supplier of heavy construction equipment has found that new customers are normally obtained through customer requests for a sales call and that the probability of a sale of a particular piece of equipment is .3. If the supplier has three pieces of the equipment available for sale, what is the probability that it will take fewer than five customer contacts to clear the inventory?
ANSWER:
Solution :
Step 1 of 1:
Let X denote the number of contracts necessary to obtain the third sale.
Then X follows a negative binomial distribution with parameter n and p.
We know that n=3 or 4, p=0.3 and
q=1-p
q=1-0.3
q=0.7
Our goal is: