Problem 104d

Given information

• A consumer looking to buy a used red Miata car will call dealerships until she finds a dealership that carries the car.
• She estimates the probability that any independent dealership will have the car will be %.
• We are interested in the number of dealerships she must call.

To find:- Part (d). On average, how many dealerships would we expect her to have to call until she finds one that has the car?

Step-by-step explanation

As per the given question,

We expect the consumer to keep calling the dealerships until she finds the particular dealership which has the used red miata car.

Hence,  or

            or

Thus, the number of dealerships calculated by the consumer is .