Customers at a gas station pay with a credit card (a), debit card (b), or cash (c). assume that successive customers make independent choices with p(a) = 0.6, p(b) = 0.3, and p(c) = 0.1. (a) among the next 100 customers, what are the mean and variance of the number who pay with a debit card? mean customers variance customers2 explain your reasoning. because we are interested in whether or not a debit card was used, we can use the binomial distribution. x = the probability that a customer used a debit card. because we are interested in whether or not a debit card was used, we can use the binomial distribution. x = the number of customers who use a debit card. because we are interested in whether or not a debit card was used, we can use the binomial distribution. x = the number of customers at the gas station. (b) answer part (a) for the number among the 100 who don't pay with cash. mean customers variance customers2

Suppose that jim plans to borrow money for an education at texas a& m university. jim will need to borrow $25,000 at the end of each year for the next five years (total=$125,000). jim wishes his parents could pay for his education but they can’t. at least, he qualifies for government loans with a reduced interest rate while he is in school. he has a special arrangement with aggiebank to lend him the money at a subsidized rate of 1% over five years without having to make a payment until the end of the fifth year. however, at the end of the fifth year, jim agrees to pay off the loan by borrowing from longhorn bank. longhorn bank will lend him the money he needs at an annual interest rate of 6%. jim agrees to pay back the longhorn bank with 20 annual payments and the payments will be uniform (equal annual payments including principal and interest). (i) calculate how much money jim has to borrow at the end of 5 years to pay off the loan with aggiebank. a. $121,336 b. $127,525 c. $125,000 d. $102,020 e. none of the above