The Owner of a Small Convenience Store Is Trying to Decide

question 69

Essay

The owner of a small convenience store is trying to decide whether to discontinue selling magazines. He suspects that only
5% of the customers buy a magazine and thinks that he might be able to use the display space to sell something more
profitable. Before making a final decision he decides that for one day he'll keep track of the number of customers and
whether or not they buy a magazine.
-What is the probability that exactly 2 of the first 10 customers buy magazines? Show work.

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Definitions:

Entrepreneurship

The process of designing, launching, and running a new business, typically starting as a small business, such as a startup.

Social Enterprise

organizations that operate commercially to address social problems, combining business practices with social objectives.

Philanthropic

Pertaining to the act of giving money, time, or effort to support a cause or mission that benefits society, often without financial or material return to the giver.

Commercial

Pertains to commerce or business activity in general; often used to describe advertisements on television or radio.