Probability of Invoices Receiving Discounts from XYZ Enterprise

What is the probability that all 12 invoices from XYZ Enterprise receive a discount?

What is the probability that the number of invoices receiving a discount is less than the expected number?

The probability that all 12 invoices receive a discount is approximately X%.

The probability that the number of invoices receiving a discount is less than the expected number is approximately Y%.

XYZ Enterprise offers a 2 percent discount on any invoice paid within 30 days. With 20 percent of invoices historically being paid within 30 days, we can calculate the probability of different scenarios for the 12 invoices sent out on March 31st.

Probability of All Invoices Receiving a Discount

To calculate the probability that all 12 invoices receive a discount, we can use the binomial distribution formula. With a success rate of 0.20 (20%), we can plug in the values to find the probability.

Probability of Invoices Receiving Less Discounts than Expected

The expected number of invoices receiving a discount is 12 * 0.20. To find the probability that the number of invoices receiving a discount is less than the expected number, we need to sum the probabilities of all outcomes from 0 to the expected number.

By calculating these probabilities, XYZ Enterprise can understand the potential outcomes of their discount offer and plan accordingly for their financial projections.