Why is a larger down payment beneficial to a home investor?
2 answers:
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The exponential distribution is:
where
The probability we want is how likely will a dvd player last more than 8 years, given it has already lasted 5 years
To find this, you use conditional probability.
where A is P(x>8) and B is P(x>5)
To find these probabilities, integrate over the distribution:
Sub into conditional probability formula:
Final Answer: Given a dvd player is more than 5 years old, the probability that it will last another 3 more years is about 54.9%
where
The probability we want is how likely will a dvd player last more than 8 years, given it has already lasted 5 years
To find this, you use conditional probability.
where A is P(x>8) and B is P(x>5)
To find these probabilities, integrate over the distribution:
Sub into conditional probability formula:
Final Answer: Given a dvd player is more than 5 years old, the probability that it will last another 3 more years is about 54.9%
