Estimate the required probability that the store will gross over $850.
Income Trevor is interested in purchasing the local hardware/sporting goods store in the small town of Dove Creek, Montana. After examining accounting records for the past several years, he found that the store has been grossing over $850 per day about 60% of the business days it is open. Estimate the probability the store will gross over $850
a) less than 5 out of 10 business days.
b) less than 6 out of the next 20 business days. If this actually happened, may it shake a person's confidence in the statement p = 0.60? Might it make a person suspect that P is less than 0.60? Explain.
c) Additional than 17 out of the next 20 business days. If this actually happened, might a person suspect that p is greater than 0.60? Explain.