Author Question: What is the probability that the stock has a return of at least 8? What will be an ideal ... (Read 31 times)

elizabeth18 · **on:** Jun 24, 2018

What is the probability that the stock has a return of at least 8?

What will be an ideal response?

Question 2

Suppose that 24 of all sales in a grocery store are for amounts greater than 100.

In a random sample of 50 invoices, what is the probability that more than ten of the invoices are for over 100? Use the normal approximation for the binomial distribution.

BAOCHAU2803 · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

1 - (0.09 + 0.14 + 0.16 ) = 0.61

Answer to Question 2

P = 0.24, n = 50, =E(X) = nP = 12, 2 = Var(X) = nP(1 - P) = 9.12, = 3.02
Without continuity correction P(X > 10 ) = P(Z > -0.66 ) = 0.7454.