Luxury Cars According to Infoplease, 18

question 64

Essay

Luxury cars According to infoplease, 18.8% of the luxury cars manufactured in 2003 were
silver. A large car dealership typically sells 50 luxury cars a month.
a. Explain why you think that the luxury car sales can be considered Bernoulli trials.
b. What is the probability that the fifth luxury car sold is the first silver one?
c. Let X represent the number of silver luxury cars sold in a typical month. What is the
probability model for X? Specify the model (name and parameters), and tell the mean and
standard deviation.

---

Definitions:

Cost

The monetary value spent by a company to produce or acquire goods or services, including manufacturing and operating expenses.

Compounded Annually

The process of adding interest to the principal sum of a deposit or loan, with the interest that has been added also earning interest from that point on.

Invest

Dedicating financial resources with the objective of achieving income or profit returns.

Fund

A pool of money set aside for a specific purpose or allocated for investing in various assets.