Question 478008: suppose 13 percent of all credit card holders eventually become deliquent. Suppose we select a random sample of 10 credit card holders. find the probability that : exactly 2 become deliquent, 3 or 4 become delinquent, 1 becomes delinquent, the mean of the probability distribution is, the standard deviation of the probability distribution is
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! suppose 13 percent of all credit card holders eventually become deliquent. Suppose we select a random sample of 10 credit card holders.
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Binomial Problem with n = 10 and p = 0.13
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Find the probability that : exactly 2 become deliquent,
P(x=2) = 10C2(0.13)^2(0.87)^8 = 0.2496
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3 or 4 become delinquent,
10C3(0.13)^3(0.87)^7 + 10C4(0.13)^4(0.87)^6
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1 becomes delinquent
10C1(0.13)(0.87)^9
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The mean of the probability distribution is np = 10*0.13 = 1.3
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The standard deviation of the probability distribution is sqrt(npq)
= sqrt(1.3*0.87) = 1.0635
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Cheers,
Stan H.
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