CFA® Level 1: Probability of Ordering Whopper, Fries, and Drink

Probability of Ordering Whopper, Fries, and Drink

Prev Question Next Question

Question

Sixty percent of the customers of a fast food chain order the Whopper, fries and a drink. If a random sample of 15 cash register receipts is selected, what is the probability that 10 or more will show that the above three food items were ordered?

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D. E.

D

This is a binomial probability. The probability of getting r successes out of n trials where the probability of success each trial is p and probability of failure each trial is q (where q = 1-p) is given by: n!(p^r)[q^(n-r)]/r!(n-r)!. Therefore, we need to find out the probability of getting 10, 11,12,13,14,15 successes and add them up.

Here n=15, p=0.6 and q=0.4. r changes from 10 to 15.

P(10 successes) = 15!(0.6^10)(0.4^5)/10!(15-10)! = 0.1859

P(11 successes) = 15!(0.6^11)(0.4^4)/11!(15-11)! = 0.1268

P(12 successes) = 15!(0.6^12)(0.4^3)/12!(15-12)! = 0.0634

P(13 successes) = 15!(0.6^13)(0.4^2)/13!(15-13)! = 0.0219

P(14 successes) = 15!(0.6^14)(0.4^1)/14!(15-14)! = 0.0047

P(15 successes) = 15!(0.6^15)(0.4^0)/15!(15-15)! = 0.00047

The sum of all the probabilities is 0.403.