Casey wants to buy a gym membership. One gym has a $147 joining fee and costs $33 per month. Another gym has no joining fee and
1 answer:
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Answer:
And the probability of loss with the first wersion is 0.729
And the probability of loss with the first wersion is 0.774
As we can see the best alternative is the first version since the probability of loss is lower than the probability of loss on version 2.
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
Alternative 1
Let X the random variable of interest, on this case we now that:
The probability mass function for the Binomial distribution is given as:
Where (nCx) means combinatory and it's given by this formula:
We can find the probability of loss like this P(X=0) and if we find this probability we got this:
And the probability of loss with the first wersion is 0.729
Alternative 2
Let Y the random variable of interest, on this case we now that:
The probability mass function for the Binomial distribution is given as:
Where (nCx) means combinatory and it's given by this formula:
We can find the probability of loss like this P(Y=0) and if we find this probability we got this:
And the probability of loss with the first wersion is 0.774
As we can see the best alternative is the first version since the probability of loss is lower than the probability of loss on version 2.