Help with 401k Basic financial math
1 answer:
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Answer:
a) 98.01%
b) 13.53\%
c) 27.06%
Step-by-step explanation:
Since a car has 10 square feet of plastic panel, the expected value (mean) for a car to have one flaw is 10*0.02 = 0.2
If we call P(k) the probability that a car has k flaws then, as P follows a Poisson distribution with mean 0.2,
a)
In this case, we are looking for P(0)
So, the probability that a car has no flaws is 98.01%
b)
Ten cars have 100 square feet of plastic panel, so now the mean is 100*0.02 = 2 flaws every ten cars.
Now P(k) is the probability that 10 cars have k flaws and
and
And the probability that 10 cars have no flaws is 13.53%
c)
Here, we are looking for P(1) with P defined as in b)
Hence, the probability that at most one car has no flaws is 27.06%