Question

a cereal company hopes to increase its sales by putting prizes in randomly - selected boxes of its lowest - selling childrens cereal. the company claims that the probability of getting a prize is 0.75. which is the correct interpretation of this probability? the claim of this company is correct if exactly 75 out of 100 boxes of this type of cereal contain a prize. there is a guarantee of getting 3 prizes when buying 4 boxes of this type of cereal. in many, many boxes of cereal of this type, we can expect about 75% of the boxes to contain a prize. this company expects to increase cereal sales by 75%.

Explanation:

Step1: Recall probability concept

Probability is the long - run relative frequency. A probability of 0.75 means that in a large number of trials (in this case, a large number of cereal boxes), we expect the event (getting a prize) to occur about 75% of the time.

Step2: Analyze each option

The first option is wrong because probability is not about an exact count in a fixed sample of 100. The second option is wrong as probability does not guarantee a specific number of successes in a small number of trials. The fourth option is wrong because the probability of getting a prize has nothing to do with the percentage increase in sales. The third option correctly interprets the probability as the expected proportion of boxes with prizes in a large number of boxes.

Answer:

In many, many boxes of cereal of this type, we can expect about 75% of the boxes to contain a prize.