On a recent trip to the SC DMV, I asked an employee to estimate what percentage of
Question:
On a recent trip to the SC DMV, I asked an employee to estimate what percentage of SC drivers arrive to renew their driver’s license with one that is currently expired. She responded that about 30 percent of all such renewals were of this type.
(a) Suppose you observe Y , the number of SC DMV customers seeking renewal to find the first one with an expired license. What is the distribution of Y ? Plot the pmf and cdf of Y side by side (like in the notes). Place an “×” on the pmf indicating where E(Y ) is.
(b) Let W denote the number of SC DMV customers seeking renewal to find the 3rd one with an expired license. What is the distribution of W ? Plot the pmf and cdf of W side by side (like in the notes). Place an “×” on the pmf indicating where E(W) is.
(c) Obviously, in parts (a) and (b), you are assuming that Bernoulli trial assumptions hold. State what these are in this application (e.g., think of each customer seeking renewal as a “trial.”)
(d) In parts (a) and (b), find the probability that among the first 6 customers seeking renewal, none have expired licenses.
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo-Ann L. Johnston, Peter R. Norwood