A Large Industrial Firm Allows a Discount on Any Invoice

question 85

Multiple Choice

A large industrial firm allows a discount on any invoice that is paid within 30 days.Of all invoices, 10% receive the discount.In a company audit, 10 invoices are sampled at random.The probability that fewer than 3 of the 10 sampled invoices receive the discount is approximately_______________.

• A)0.1937
• B)0.057
• C)0.001
• D)0.3486
• E)0.9298

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Definitions:

Poisson Distribution

A probability distribution that measures the likelihood of a given number of events happening in a fixed interval of time or space.

Probability Distribution

A mathematical function that gives the likelihoods of various possible results in an experiment.

Binomial Distribution

A probability distribution that describes the number of successes in a fixed number of independent trials, with each trial having only two possible outcomes.

Binomial Random Variable

A type of random variable that follows the binomial distribution, representing the number of successful outcomes in a fixed number of trials.