A chain of stores are running promotion where customers receive scratch ticket at check-out. Underneath is discount rate for that purchase. The tickets were printed so that 45% offered 10% discount, 35% offered 20% discount, 10% offered 30% discount and 5% offered a 40% discount 4% offer 50% discount and 1% offer a 90% discount. The tickets are randomized prior to their distribution. Show all your work in the questions.
a) Determine the probability that two customers in row both get a 40% discount?
b) Determine the expected value of the discount? ( In the long run, what is the mean discount rate given to each customer?)
c) As you wait in line you watch the four people i front of you all get 40% discounts. The store manager tells you how lucky you are to be getting the next ticket while they are on a hot streak, but the friend with you said the streak can't continue. Comment on their statements.