2. Bob sells home insurance policies by visiting potential clients door to door.

Question

2. Bob sells home insurance policies by visiting potential clients door to door. At each home, the probability of making a sale (given his track record) is 20%. a) If Bob visits 10 homes, what is the probability that he will sell less than 2 policies? (2 points) b) If Bob visits 5 homes, what is the probability that he will sell exactly 4policies? (2 points) c) Bob has a quota of 12 policies for a month. How many homes he needs to visit to have a 80% chance of making his quota? (extra credit 7 points)

Explanation / Answer

p = 0.20

q = 0.80

n = 10

X no of successes is binomial

a) P(X<2) =0.3758

b) P(x=4 when n =5)

=0.0064

c) P(x = 80% of 12)

= P(X = 12)

= 0.8

Nearly for n = 72, he completesatleast 12

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