Essentials of Business Analytics 1st Edition by Jeffrey Camm,James Cochran,Michael Fry,Jeffrey Ohlmann ,David Anderson

Exercise 21

Refer to the jackpot soap scenario in Problem 23. After the sale of the original 1000 bars of soap, jackpot soap went viral, and the soap has become wildly popular. Production of the soap has been ramped up so that now millions of bars have been produced. However, the distribution of the bills in the soap obeys the same distribution as outlined in Problem 23. On average, how many bars of soap will a customer have to buy before purchasing three bars of soap each containing a bill of at least $20 value Use the negative binomial distribution in ASP to answer this question.