Question

In: Statistics and Probability

Assume that 40% of UAE residents prefer to buy organic eggs. Assume that you took a...

  1. Assume that 40% of UAE residents prefer to buy organic eggs. Assume that you took a sample of 20 residents who consume eggs.

    1. What is the probability that at least 12 residents will buy organic eggs?

    2. What is the expected number of the residents who buy eggs?

    3. What is the probability that 10 residents will buy organic eggs?

Solutions

Expert Solution

Sol:

problem on binomial distribution

n=20

p=0.40

What is the probability that at least 12 residents will buy organic eggs?

P(X>=12)

P(X=12)+P(X=13)+P(X=14)+P(X=15)+P(X=16)+P(X=17)+P(X=18)+P(X=19)+P(X=20)

=20c12*0.4^12*0.6^20-12+20c13*0.4^13*0.60^20-13+20c14*0.4^14*0.60^20-14+

20c15*0.4^15*0.60^20-15+20c16*0.4^16*0.60^20-16+20c17*0.4^17*0.60^20-17+

20c13*0.4^18*0.60^20-18+20c19*0.4^13*0.60^20-19+20c20*0.4^2080.60^20-20

use below Rcode:

library(tigerstats)
pbinomGC(c(12,20),region="between",size=20,prob=0.40,graph=TRUE)

OUTPUT:

> pbinomGC(c(12,20),region="between",size=20,prob=0.40,graph=TRUE)
[1] 0.05652637
>

0.0565(rounded to 4 decimals)

What is the expected number of the residents who buy eggs?

expected number of the residents who buy eggs=np=20*0.40=8

8

What is the probability that 10 residents will buy organic eggs?

P(X=10)

20c10*0.4^10*0.60^20-10

= 0.1171416

=0.1171

0.1171


Related Solutions

1) Assume you buy 100 shares of stock at $40 per share on margin. The initial...
1) Assume you buy 100 shares of stock at $40 per share on margin. The initial margin is 50%. If the price rises to $55 per share, what is your percentage gain on the initial equity?
Assume you are a corporate shareholder. Would you prefer to receive a stock dividend or a...
Assume you are a corporate shareholder. Would you prefer to receive a stock dividend or a cash dividend? Why? Now assume you are a corporation. Would you prefer to issue a stock dividend or a cash dividend? Why? Why do you think a company would want to retain earnings as opposed to distributing it to its shareholders? In your opinion, why would a company decide to perform a stock split?
In another scenario (not related to part a or b), let’s assume that you prefer the...
In another scenario (not related to part a or b), let’s assume that you prefer the 10-year loan because you want to pay off the loan faster.   Now the bank also offers a 10-year variable-interest mortgage loan with the first 3 years locked with an APR of 3%. And after 3 years, the bank will use floating interest rate based on market condition. Somehow you believe that the floating interest rate is going to be within range of 1% to...
In another scenario (not related to part a or b), let’s assume that you prefer the...
In another scenario (not related to part a or b), let’s assume that you prefer the 10-year loan because you want to pay off the loan faster.   Now the bank also offers a 10-year variable-interest mortgage loan with the first 3 years locked with an APR of 3%. And after 3 years, the bank will use floating interest rate based on market condition. Somehow you believe that the floating interest rate is going to be within range of 1% to...
You took a loan to buy a new car. The monthly interest rate on the loan...
You took a loan to buy a new car. The monthly interest rate on the loan is 1.5% and you have to pay $240 every month for 60 months 1)What is the Present value of the Cash flows if its an ordinary annuity? 2)What is the future value of cash flows if its an ordinary annuity? 3)What is the present value of the cash flows if its an annuity due? 4)What is the future value of cash flows if its...
You took out a loan to buy a new car. The monthly interest rate on the...
You took out a loan to buy a new car. The monthly interest rate on the loan is 1%. You have to pay $270 every month for 60 months. Attempt 1/5 for 8 pts. Part 1 What is the present value of the cash flows if it's an ordinary annuity? Attempt 1/5 for 8 pts. Part 2 What is the future value of the cash flows if it's an ordinary annuity? Attempt 1/5 for 10 pts. Part 3 What is...
Which if the following would you prefer to be buying based on yield to maturity (assume...
Which if the following would you prefer to be buying based on yield to maturity (assume n = 25)? A) A $10,000 par value security with a 9% coupon rate selling for $9,000 B) A $15,000 par value security with a 7% coupon rate selling for $15,700 C) A $20,000 par value security with a 9% coupon rate selling for $20,500. D) A $25,000 par value security with a 7% coupon rate selling for $25,500.
Assuming stock markets are completely efficient, which company’s stock would you prefer to buy? (1) The...
Assuming stock markets are completely efficient, which company’s stock would you prefer to buy? (1) The stock of a company that enjoys extremely high returns on its investments because the company operates in an industry where it holds a near monopoly position. (2) A company that earns barely acceptable returns on its investments because the company operates in an industry that is highly competitive Why, Explain?
2. Which of the following bonds would you prefer to be buying? Assume n = 30...
2. Which of the following bonds would you prefer to be buying? Assume n = 30 for all bond maturities. A)  A $10,000 face-value security with a 6% coupon rate selling for $9,000. B)  A $10,000 face-value security with a 6% coupon rate selling for $10,000. C)  A $10,000 face-value security with a 6% coupon rate selling for $11,000. D)  A $10,000 face-value security with a 7% coupon rate selling for $9,500. E)  A $10,000 face-value security with a 7% coupon rate selling for $11,500....
You took a SRS ( Simple Random Sample)  of size 40. Suppose that another student presented the...
You took a SRS ( Simple Random Sample)  of size 40. Suppose that another student presented the exact same data values as you. Calculate the probability of this happening. Should I as the instructor be concerned?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT