Marketing and Consumer Behavior
Kohl's is running a sale in which customers may save as much as 40% on any purchase. Once a customer decides to make a purchase, he selects two sales prize tickets at random from a large bin at the front of the store. Each ticket has a percentage marked on it, and the probability of selecting each ticket is given in the table below
|
Percentage
|
10%
|
20%
|
30%
|
40%
|
|
Probability
|
0.50
|
0.35
|
0.10
|
0.05
|
The larger of the two percentages selected is used for the purchase.
a. Let X be the maximum of the two prize ticket percentages. Find the probability distribution for X.
b. Find the mean, variance, and standard deviation of X.
c. What is the probability that a customer will receive at least 20% off on his or her purchase?