A Retailer Claims That 90% of Its Customers Are "Pleased

question 64

Multiple Choice

A retailer claims that 90% of its customers are "pleased" or "very pleased" with the customer
Service. In a survey of 300 customers taken last week, what is the probability that between 80% and
90% will be "pleased" or "very pleased" with the service?

• A) 0.1736
• B) 0.5736
• C) 0.3464
• D) Almost 100%
• E) Almost 50%

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Definitions:

Treasury Bill

A short-term government security issued at a discount from par value and paying no interest, maturing in a year or less.

Simple Interest

Interest calculated only on the principal amount, without compounding on accumulated interest.

Selling Price

The amount of money for which a product or service is sold to customers.

Revolving Line of Credit

A credit facility extended by a financial institution to a customer that allows the customer to borrow up to a certain limit, pay down the balance, and then borrow again.