Suppose you invest a fixed sum of money in each of five Internet business ventures. Assume you
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Question:
Suppose you invest a fixed sum of money in each of five Internet business ventures. Assume you know that 70% of such ventures are successful, the outcomes of the ventures are independent of one another, and the probability distribution for the number, x, of successful ventures out of five is
Find μ = E(x). Interpret the result.
Find σ=E[(x-μ)2]. Interpret the result.
Graph p(x). Locate and the interval μ±2σ on the graph. Use the Empirical Rule to approximate the probability that x falls in this interval. Compare this result with the actual probability.
Would you expect to observe fewer than two successful ventures out of five?
Related Book For
Statistics For Business And Economics
ISBN: 9781292227085
13th Global Edition
Authors: Terry Sincich James Mcclave, P. George Benson
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