Question

8. The 2003 Zagat Restaurant Survey provides food, decor, and service ratings for some of the top restaurants across the United States. For 15 top-ranking restaurants located in Boston, the average price of a dinner, including one drink and tip, was $48.60. You are leaving for a business trip to Boston and will cat dinner at three of these restaurants. Your company will reimburse you for a maximum of $50 per dinner. Business associates familiar with these restaurants have told you that the meal cost at one-third of these restaurants will exceed $50. Suppose that you randomly select three of these restaurants for dinner. a) What is the probability that none of the meals will exceed the cost covered by your company

Answer 1

0.2637

Explanation:

Population size is top 15 ranking restaurants.

Number of draws = 3

Number of observed successes = 5

Probability formula : [r . x } { n -r] [n - x]

solving the equation we get 24 / 91 which is approximately 0.2637