Question

Chapter 5, #35 is different in the book than on the answer solutions. Can you please help me w/ the following:

The Center for Medicare and Medical Services reported that there were 295,000 appeals for hospitalization and other Part A Medicare service. For this group, 40% of the first round appeals were successful. Suppose 10 first round appeals have just been received by a Medicare appeals office.

1. Compute the probability that none of the appeals will be successful.

2. Compute the probability that exactly one of the appeals will be successful.

3. What is the probability that at least two of the appeals will be successful?

4. What is the probability that more than half of the appeals will be successful?

Answer 1

Probability that a first round appeal is successful = 40% = 0.4

Let number of successful first round appeals among the 10 first round appeals received be X.

Thus :- X ~ Binomial (10,0.4)