Question: In a given year in a developing country, the probability of death in any earthquake equals 0.0004 for highlanders and 0.0003 for plain land dwellers
In a given year in a developing country, the probability of death in any earthquake equals 0.0004 for highlanders and 0.0003 for plain land dwellers (Statistical Abstract of the Developing Countries).
(a) In a town having 2 million highland dwellers, find the mean and standard deviation of x = number of deaths from any severe earthquake. State the assumptions for these to be valid.
(b) Would it be surprising if x = 10? Explain. (Hint: How many standard deviations is 10 from the expected value?)
(c) Based on the normal approximation to the binomial, find an interval within which x has probability 0.95 of occurring.
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