document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=275929>Question 275929</A>: <I><SPAN STYLE=\"word-break: break-all;\"> The probability that a small business will go bankrupt in its first year is .21. For 50 such small businesses, find the following probabilities first by using the binomial probability formula, and then by using the normal approximation.\r<BR>\n" );
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document.write( "a. Exactly 8 go bankrupt.\r<BR>\n" );
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document.write( "b. No more than 2 go bankrupt. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #201189 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=201189\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> The probability that a small business will go bankrupt in its first year is .21. For 50 such small businesses, find the following probabilities first by using the binomial probability formula, and then by using the normal approximation. <BR>\n" );
document.write( "a. Exactly 8 go bankrupt.<BR>\n" );
document.write( "binomial: binompdf(50,0.21,8) = 0.1019<BR>\n" );
document.write( "normal approx: normalcdf(7.5,8.5,0.21*50,sqrt(0.21*50*0.79) = 0.0949<BR>\n" );
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document.write( "b. No more than 2 go bankrupt.<BR>\n" );
document.write( "binomial: binomcdf(50,0.21,2) = 0.0007674<BR>\n" );
document.write( "normal approx:  normalcdf(0,2.5,0.21*50,sqrt(0.21*50*0.79) = 0.0026<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
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