Question
Owen owns a small business selling ice-cream. He knows that in the last week 102 customers
paid cash, 3 customers used a debit card, and 8 customers used a credit card.
Based on these results, express the probability that the next customer will pay with a credit
card as a decimal to the nearest hundredth.
Answer Attempt 1 out of 2

In the last week, Owen had a total of 113 customers (102 cash + 3 debit + 8 credit). Out of those, 8 paid with a credit card. To find the probability that the next customer will pay with a credit card, you divide the number of credit card transactions by the total number of transactions: . When rounded to the nearest hundredth, the probability is 0.07.

This scenario reflects a relevant trend in consumer behavior, where different payment methods have varying acceptance levels based on convenience and security. Credit card usage can signify trust in digital transactions, often preferred by younger customers who appreciate the rewards and cashback incentives associated with plastic payments, making it an important consideration for businesses adapting to consumer preferences.

In a small business setting, it’s not just about knowing the numbers but also about addressing customer needs. Make sure to offer a variety of payment options to cater to all types of customers. Keep a close eye on how payment trends change; it can inform you of when to invest in new payment systems or apps that make transactions seamless and quicker for your clientele.