Five percent of all items sold by a mail-order company are returned by customers for a refund. Find the probability that of two items sold during a given hour by this company both will be returned for a refund
an average of 0.56 defects per 500 yards. Using the Poisson formula, find the probability that the number of defects in a given 500-yard piece of this fabric will be more than 3
To find the probability that both items will be returned for a refund, we need to multiply the probability of the first item being returned by the probability of the second item being returned. Let's break it down step by step.
Step 1: Convert the given percentage into a decimal. Five percent can be written as 0.05.
Step 2: Find the probability that the first item will be returned. Since we know that 5% of the items are returned, the probability of the first item being returned is 0.05.
Step 3: Find the probability that the second item will be returned. Since the first item has already been returned, we now have one less item, and the probability would be based on the remaining items. Therefore, the probability of the second item being returned is also 0.05.
Step 4: Multiply the probabilities. We need to multiply the probability of the first item being returned (0.05) by the probability of the second item being returned (0.05).
So, the probability of both items being returned for a refund is 0.05 x 0.05 = 0.0025.
Therefore, the probability that both items sold during a given hour will be returned for a refund is 0.0025 or 0.25%