Expected number who actually buy a piece of art


An artist sells her works at the East Lansing Art Festival. Suppose that 5% of those who stop by her booth will buy a piece of art, and that those who stop by arrive in random order and make buying decisions independently of others. If 100 potential customers arrive during one day, what is the expected number who actually buy a piece of art?

(Note that the assumptions are somewhat unrealistic. People likely won't arrive in random order. Rather families and friends will arrive together. And buying decisions might not be independent. If a customer sees someone else buy a piece of art, he might be more inclined to buy one himself. Nonetheless, the assumed model gives a simple first approximation to the truth.)

A) 5
B) 50
C) 20
D) 100

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Basic Statistics: Expected number who actually buy a piece of art
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