David's gasoline station offers 4 cents off per gallon if the customer pays in cash. Past evidence indicates that 40% of all customers pay in cash. During a one-hour period, 15 customers buy gasoline at this station. What is the probability that all 15 pay in cash

Probability that all 15 pay in cash is 1.074 .

Step-by-step explanation:

We are given that Past evidence indicates that 40% of all customers pay in cash. During a one-hour period, 15 customers buy gasoline at this station.

The above situation can be represented through Binomial distribution;

where, n = number of trials (samples) taken = 15 customers

            r = number of success = all 15

           p = probability of success which in our question is % of all

                  customers who pay in cash, i.e; 40%

LET X = Number of customers who pay in cash

So, it means X ~

Now, Probability that all 15 customers who buy gasoline at this station pay in cash is given by = P(X = 15)

         P(X = 15) =

                         =

                         = = 1.074

Therefore, Probability that all 15 customers pay in cash is 1.074 .

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