The Owner of a Small Convenience Store Is Trying to Decide

Essay

The owner of a small convenience store is trying to decide whether to discontinue selling magazines. He suspects that only 5% of the customers buy a magazine and thinks that he might be able to use the display space to sell something more profitable. Before making a final decision he decides that for one day he'll keep track of the number of customers and whether or not they buy a magazine.
-Surprised by the high number of customers who purchased magazines that day, the owner decided that his 5% estimate must have been too low. How many magazine sales would it have taken to convince you? Justify your answer.