Trevor is interested in purchasing the local hardware/sportinggoods store in the small town of Dove Creek, Montana. Afterexamining accounting records for the past several years, he foundthat the store has been grossing over $850 per day about 50% of thebusiness days it is open. Estimate the probability that the storewill gross over $850 for the following. (Round your answers tothree decimal places.)
(a) at least 3 out of 5 business days
(b) at least 6 out of 10 business days
(c) fewer than 5 out of 10 business days
(d) fewer than 6 out of the next 20 business days
If the outcome described in part (d) actually occurred, might itshake your confidence in the statement p = 0.50? Might itmake you suspect that p is less than 0.50? Explain.
Yes. This is unlikely to happen if the true value of pis 0.50.Yes. This is likely to happen if the true value ofp is 0.50.    No. This is unlikely tohappen if the true value of p is 0.50.No. This is likelyto happen if the true value of p is 0.50.
(e) more than 17 out of the next 20 business days
If the outcome described in part (e) actually occurred, might yoususpect that p is greater than 0.50? Explain.
Yes. This is unlikely to happen if the true value of pis 0.50.Yes. This is likely to happen if the true value ofp is 0.50.    No. This is unlikely tohappen if the true value of p is 0.50.No. This is likelyto happen if the true value of p is 0.50.
