please check out the picture for the math question

User Generated

djreyhpl

Mathematics

Description

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

a. p_1 =P(<100K, audited) = 12/1000 = 0.012;   p_2 = P(>100K, audited) = 31/1000 = 0.031

b. P(x = 1) = (4 C 1)*p_1*(1-p_1)^3 = 4*0.012*0.988^3 = 0.0463 (rounded to 4 decimal places)

P(x > 1) = 1 - P(x=0) - P(x=1) =1 - (1-p_1)^4 -  (4 C 1)*p_1*(1-p_1)^3 = 1 - 0.95286 - 0.04629 = 0.0009

c. P(x = 1) = (4 C 1)*p_2*(1-p_2)^3 = 4*0.031*0.969^3 = 0.1128 (rounded to 4 decimal places)

P(x > 1) = 1 - P(x=0) - P(x=1) =1 - (1-p_2)^4 -  (4 C 1)*p_2*(1-p_2)^3 = 1 - 0.88165 - 0.11282 = 0.0055



Anonymous
Great! Studypool always delivers quality work.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags