A store has found that 60% of their customers spend more than $75 each visit. What is the probability that the next two customers will spend more than $75.
prob that next one is above 75 = .6
prob that the one after that is independently .6 again
so
probability of both = .6*.6 = .36
it would be 6 times 6
To find the probability that the next two customers will spend more than $75 each, we need to make certain assumptions. We will assume that each customer's spending is independent of others and that the probability of spending more than $75 is constant.
Given that 60% of customers spend more than $75, we can say that the probability (P) of any customer spending more than $75 is 0.60. Thus, the probability of a customer spending $75 or less is 1 - P, which is 1 - 0.60 = 0.40.
Since the customers' spending is assumed to be independent, the probability that two customers will spend more than $75 each is the product of their individual probabilities. So, to find the probability that both the next two customers spend more than $75, we multiply P by itself:
P(both customers spend >$75) = P(customer 1 spends >$75) * P(customer 2 spends >$75)
= 0.60 * 0.60
= 0.36
Therefore, the probability that the next two customers will spend more than $75 each is 0.36, or 36%.