Sammy plans on a discounted loan with an advertised interest rate of 9%. Sammy will pay $153 in interest on the $1700 loan. How
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Answer:
Step-by-step explanation:
Previous concepts
The binomial distribution is a "DISCRETE probability distribution that summarizes the probability that a value will take one of two independent values under a given set of parameters. The assumptions for the binomial distribution are that there is only one outcome for each trial, each trial has the same probability of success, and each trial is mutually exclusive, or independent of each other".
Solution to the problem
Let X the random variable of interest, on this case we now that:
The probability mass function for the Binomial distribution is given as:
For this case we want this probability:
And we can use the complement rule like this:
And we can find the individual probabilities like this:
And in order to do the operations we can use the following excel code:
"=1-BINOM.DIST(8,25,0.3089,TRUE)"
And we got: