A Salesperson Contacts Eight Potential Customers Per Day

question 113

Short Answer

A salesperson contacts eight potential customers per day. From past experience, we know that the probability of a potential customer making a purchase is .10.
a.What is the probability the salesperson will make exactly two sales in a day?
b.What is the probability the salesperson will make at least two sales in a day?
c.What percentage of days will the salesperson not make a sale?
d.What is the expected number of sales per day?

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Definitions:

Owner's Capital

The amount of money and other assets invested in a business by its owner or owners.

Owner's Drawings

The withdrawal of business assets by the owner for personal use.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts in preparation for the new accounting period.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired, representing the wear and tear over time.