Question

In: Statistics and Probability

suppose we consider the coats selected to be marked down fifteen percent of them are black...

suppose we consider the coats selected to be marked down fifteen percent of them are black twelve coats are randomly chosen. describe the probability distribution of the variable that denotes the number of black coats

Solutions

Expert Solution

Summary : Probability distribution of the variable that denotes tge number of black coats is Binomial(n=12,p=0.15)

If you find answer satisfactory, please rate us and give feedback.


Related Solutions

Suppose we have a sack with 2 red balls and 2 black balls, and we draw...
Suppose we have a sack with 2 red balls and 2 black balls, and we draw balls without replacement until the second red ball is drawn. Describe the random variable ? = "the number of balls drawn". Describe by giving the range, probability distribution, expected value, standard deviation, and variance.
Suppose we keep rolling a tetrahedral die (with faces marked as 1, 2, 3, 4) till...
Suppose we keep rolling a tetrahedral die (with faces marked as 1, 2, 3, 4) till an even number appears for the first time. (a) Give a precise description of the sample space. (b) Give the probability of each elementary outcome (each element of the sample space). (c) Find the probability of an even number appearing for the first time at the nth roll. (d) Find the probability of an even number appearing for the first time no later than...
Suppose we have 4 students and we take their phones then return the phones to them...
Suppose we have 4 students and we take their phones then return the phones to them randomly. Let X be the number of students who receive their own phone. Create a probability distribution chart for X.
Consider a stock currently trading at 25 that can go up or down by 15 percent...
Consider a stock currently trading at 25 that can go up or down by 15 percent per period. The risk-free rate is 10 percent. Use one-period binomial model. a. Determine the two possible stock prices for the next period. b. Determine the intrinsic values at expiration of a European call with an exercise price of 25. c. Find the value of the option today. d. Construct a hedge by combining a position in stock with a position in the call....
Consider a stock currently trading at 25 that can go up or down by 15 percent...
Consider a stock currently trading at 25 that can go up or down by 15 percent per period. The risk-free rate is 10 percent. Use one-period binomial model. A. Determine the two possible stock prices for the next period. B. Determine the intrinsic values at expiration of a European call with an exercise price of 25. C. Find the value of the option today. D. Construct a hedge by combining a position in stock with a position in the call....
Suppose that new data indicates that the global economy is slowing down, and we are heading...
Suppose that new data indicates that the global economy is slowing down, and we are heading for another global recession. As a result, there is pessimism among domestic consumers and investors affecting consumer and investment spending. (i) Show this development using Aggregate demand/Aggregate Supply (AD-AS) model of the domestic economy clearly. (Hint: Begin with the AD-AS diagram for the economy that shows the economy is in long-run equilibrium). Make sure to label the variables represented on the X-axis and Y-axis...
Black-Scholes option pricing Suppose the stock price is 50 and we need to price a call...
Black-Scholes option pricing Suppose the stock price is 50 and we need to price a call option with a strike of 55 maturing in 2 months. The stock is not expected to pay dividends. The continuously compounded risk-free rate is 3%/year, the mean return on the stock is 7%/year, and the standard deviation of the stock return is 30%/year. What is the N(d1) and N(d2)? What is the price of the call option? What is the price of a put...
1. Suppose workers bargain for a new contract that gives them a 5 percent pay increase...
1. Suppose workers bargain for a new contract that gives them a 5 percent pay increase over the next year. If they expected no inflation and inflation is in fact 2 percent, inflation makes: a. both workers and firms worse off. b. workers worse off and firms better off. c. workers better off and firms worse off. d. both workers and firms better off. 2. Social security payments have been adjusted for inflation annually since the late 1970s yet it...
Consider n people and suppose that each of them has a birthday that is equally likely...
Consider n people and suppose that each of them has a birthday that is equally likely to be any of the 365 days of the year. Furthermore, assume that their birthdays are independent, and let A be the event that no two of them share the same birthday. Define a “trial” for each of the ?n? pairs of people and say that 2 trial (i, j ), I ̸= j, is a success if persons i and j have the...
Suppose, for a random sample selected from a normal population, we have the values of the...
Suppose, for a random sample selected from a normal population, we have the values of the sample mean x ̄ = 67.95 and the standard deviation s = 9. a. Construct a 95% confidence interval for population mean μ assuming the sample size n = 16. b. Construct a 90% confidence interval for population mean μ assuming n = 16. c. Obtain the width of the confidence intervals calculated in a and b. Is the width of 90% confidence interval...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT