Question

Carlson Jewelers permits the return of their diamond wedding rings, provided the return occurs within two weeks of the purchase date. Their records reveal that 10 percent of the diamond wedding rings are returned. Five different customers buy five rings. What is the probability that none will be returned? (Hint: use Binominal distribution)

Answer 1

0.59049

Explanation:

Given that Carlson Jewelers permits the return of their diamond wedding rings, provided the return occurs within two weeks of the purchase date.

From past records we find the probability for a random person to return = 10%=0.10

X - no of persons returning the diamond wedding ring is binomial since there are two outcomes and also each person is independent of the other

X is Binomial (5, 0.10)

Probability that none will be returned

=
`P(X=0)\\= (1-0.10)^5\\=0.59049`