Jim wants to purchase a used boat. The price is $8,000 cash or $1,200 down and 18 monthly payments of $429.00. Jim decided to fi
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Answer:
a)
b)
And adding these values we got:
c) We can find the expected value given by:
And the standard deviation would be:
We can use the approximation to the normal distribution and we have at leat 95% of the data within 2 deviations from the mean. And the lower limit for this case would be:
And then we can consider a value of 18 as unusual lower for this case.
Step-by-step explanation:
Let X the random variable of interest "number cleared by arrest or exceptional", on this case we can model this variable with this distribution:
The probability mass function for the Binomial distribution is given as:
Where (nCx) means combinatory and it's given by this formula:
Part a
We want this probability:
Part b
We want this probability:
We can find the individual probabilities:
And adding these values we got:
Part c
We can find the expected value given by:
And the standard deviation would be:
We can use the approximation to the normal distribution and we have at leat 95% of the data within 2 deviations from the mean. And the lower limit for this case would be:
And then we can consider a value of 18 as unusual lower for this case.