A Sporting Goods Store Announces a "Wheel of Savings" Sale

question 143

Essay

A sporting goods store announces a "Wheel of Savings" sale. Customers select the merchandise they want to purchase, then
at the cash register they spin a wheel to determine the size of the discount they will receive. The wheel is divided into 12
regions, like a clock. Six of those regions are red, and award a 10% discount. The three white regions award a 20% discount
and two blue regions a 40% discount. The remaining region is gold, and a customer whose lucky spin lands there gets a 100%
discount - the merchandise is free! Show your work.
-What is the probability that two customers in a row get only 10% discounts?

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Definitions:

Entrepreneurs

Individuals who take the initiative to start and manage a business, taking on financial risks with the aim of making a profit.

Purely Competitive

A market structure characterized by many buyers and sellers, free entry and exit, and a homogeneous product, leading to no single buyer or seller having control over prices.

Economic Profits

Economic profits refer to the excess income earned by firms after accounting for both explicit and implicit costs, serving as a measure of efficiency and profitability.

Creative Destruction

A process where new innovations lead to the demise of older technologies or businesses, driving economic growth and progress.