The Owner of a Pet Store Is Trying to Decide

question 76

Essay

The owner of a pet store is trying to decide whether to discontinue selling specialty clothes for pets. She suspects that only 4% of the customers buy specialty clothes for their pets and thinks that she might be able to replace the clothes with more interesting and profitable items on the shelves. Before making a final decision she decides to keep track of the total number of customers for a day, and whether they purchase specialty clothes for their pet.
-What is the probability that she does not sell a garment until the 7th customer? Show work.

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Definitions:

Aqueous Acid

An acid solution in which water is the solvent, capable of donating protons (H+ ions) in a reaction.

Sample Proportion

The fraction of individuals in a sample with a particular characteristic or trait.

Large-Sample Method

Statistical techniques that assume the sample size is large enough to rely on the normal distribution as an approximation for the distribution of sample statistics.

Relative Risk

A measure in epidemiology that compares the risk of a certain event occurring in one group versus another.