Ralph's Gas Station Is Running a Giveaway Promotion

question 8

Short Answer

Ralph's Gas Station is running a giveaway promotion. With every fill-up of gasoline, Ralph gives out a lottery ticket that has a 25% chance of being a winning ticket. Customers who collect four winning lottery tickets are eligible for the "BIG SPIN" for large payoffs. What is the probability of qualifying for the big spin if a customer fills up: (a) 3 times; (b) 4 times; (c) 7 times?

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Definitions:

Eurodollars

U.S. dollars deposited in banks in other countries.

Foreign Banks

Banks that are based in a country different from where they provide services or conduct operations.

Direct Quote

A direct quote is a representation of the cost of one currency in terms of another currency.

British Pound

The currency of the United Kingdom, which is one of the world's major currencies, traded extensively in the foreign exchange markets.