A firm is considering using the Internet to supplement its traditional sales methods. From the data of similar firms, it is estimated that one of every 1,000 Internet hits result in a sale. Suppose the firm has 2,500 hits in a single day.
a. Write an expression for the probability that there are less than six sales, do not complete the calculations.
b. What assumptions are needed to write the expression in part (a)?
c. Use a normal approximation to compute the probability that less than six sales aremade.
d. Use a Poisson approximation to compute the probability that less than six sales aremade.
e. Use a computer program (if available) to compute the exact probability that less than six sales are made. Compare this result with your calculations in (c) and (d).