Discussion:
According to Padgett Business Services, 20% of all smallbusiness owners say the most important advice for starting a business is to prepare for long hours and hard work. Twenty-five percent say the most important advice is to have good financing ready. Nineteen percent say having a good plan is the most important advice; 18% say studying the industry is the most important advice; and 18% list other advice. Suppose 12 small business owners are contacted, and assume that the percentages hold for all small-business owners.
a. What is the probability that none of the owners would say preparing for long hours and hard work is the most important advice?
b. What is the probability that six or more owners would say preparing for long hours and hard work is the most important advice?
c. What is the probability that exactly five owners would say having good financing ready is the most important advice?
d. What is the expected number of owners who would say having a good plan is the most important advice?