Question: Hardware Store: Income

Trevor is interested in purchasing the local hardware/sporting goods store in a small town of Dove Creek, Montana. After examining accounting records for the past several years, he found that the store has been grossing over $850 per day about 60% of the business days it was open. Estimate the probability that the store will gross over $850

a.) At least 3 out of 5 business days?

b.) At least 6 out of 10 business days?

c.) Fewer than 5 out of 10 business days?

d.) Fewer than 6 out of the next 20 business days. If this actually happened, might it shake your confidence in the statement p = 0.60? Might it make you suspect that p is less than 0.60? Explain.

e.) More than 17 out of the next 20 business days. If this actually happened, might you suspect that p is greater than 0.60? Explain.