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

question 97

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.
-As you wait your turn in line there are three gold winners in a row. A lively discussion
ensues between the next two customers. One thinks that streak about kills her chances of
winning free merchandise, as the wheel won't come up gold again for a very long time.
The other says that the wheel is clearly on a hot streak, so they are lucky to be next in line.
Comment on their opinions.

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Definitions:

Defined Contribution Pension Plan

A retirement plan where an employer, employee or both make contributions, with future benefits dependent on investment performance.

IRS Approved

Indicates that a financial arrangement or practice has been sanctioned or recognized by the Internal Revenue Service.

Defined Benefit Pension Plan

A retirement plan where employee benefits are calculated on a formula including salary history and duration of employment, with the employer bearing investment risk.

Pension Plan Asset

The resources set aside to meet future pension obligations, including investments and other assets.