A certificate of deposit has an annual simple interest rate of 5.25%. If $567 in interest is earned over a 6 year period, how mu
1 answer:
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Part a is correct.
Part b can be done a couple ways.
1) Use binomial distribution. p = 0.2, n = 144
P(x>3) = 1 - P(x=0) -p(x=1) -p(x=2) -p(x=3)
where
2) Assume a normal distribution with mean = 28.2, stdev = 4.8
Look up z-value in normal table to find probability.
Hope that helps.
Part b can be done a couple ways.
1) Use binomial distribution. p = 0.2, n = 144
P(x>3) = 1 - P(x=0) -p(x=1) -p(x=2) -p(x=3)
where
2) Assume a normal distribution with mean = 28.2, stdev = 4.8
Look up z-value in normal table to find probability.
Hope that helps.