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Posted by siddhi on Tuesday, May 1, 2012 at 8:24am.

A MAIL-ORDER FIRM HAS A CIRCULAR WHICH ELICITS A 10 % RESPONSE RATE. SUPPOSE 20 OF THE CIRCULARS ARE MAILED AS A MARKET TEST IN A NEW GEOGRAPHIC AREA. ASSUMING THAT THE 10% RESPONSE RATE IS APPLICABLE IN THE NEW AREA, DETERMINE THE PROBABILITIES OF THE FOLLOWING EVENTS:
A. NO ONE RESPONDS

B. A MAJORITY OF THE PEOPLE RESPOND

C. WHAT IS THE EXPECTED NUMBER OF PEOPLE WILL RESPOND?

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