The Local Ford Dealership Claims 40% of Its Customers Are

Essay

The local Ford dealership claims 40% of its customers are return buyers, meaning that the customers have previously purchased a Ford vehicle. Let the random variable x be the number of return buyers in a random sample of 10 recent customers.
a. Find P(1 < x < 5).
b. Find P(x > 6).
c. What would you conclude about the accuracy of the dealership's claim if you found nine repeat buyers in the sample? Explain your reasoning.