For drivers aged 20-24 there is a 34% chance of having a car accident in a one
Question:
For drivers aged 20-24 there is a 34% chance of having a car accident in a one year period (based on data from the National Safety Council).
(a) Based on this data, in a group of 8 randomly selected drivers aged 20-24, find the probability that at least 2 of them will have a car accident in the next year.
(b) In a group of 140 drivers aged 20-24, find the mean number of drivers who will have a car accident in the next year.
(c) In a group of 140 drivers aged 20-24, find the standard deviation of the number of drivers who will have a car accident in the next year.
(d) Suppose that a group of 15 drivers aged 20-24 are randomly selected, and 9 of them have had a car accident in the last year. Is this a significantly high number that would perhaps suggest that the given percentage of drivers aged 20-24 that have a car accident in a one year period (i.e., 34%) is not correct?
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates