Which is the better investment: 5% compounded monthly or 5.25% compounded annually
1 answer:
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Answer:
a) The probability that this whole shipment will be accepted is 30%.
b) Many of the shipments with this rate of defective aspirin tablets will be rejected.
Step-by-step explanation:
We have a shipment of 3000 aspirin tablets, with a 5% rate of defects.
We select a sample of size 48 and test for defectives.
If more than one aspirin is defective, the batch is rejected.
The amount of defective aspirin tablets X can be modeled as a binomial distribution random variable, with p=0.55 and n=48
We have to calculate the probabilities that X is equal or less than 1: P(X≤1).