Use the Following Information for the Question

question 53

Short Answer

Use the following information for the question. Suppose that the probability that the train travelling from Holland, Michigan to Chicago, Illinois arrives on time is 0.80. For the questions that follow, consider a sample of twenty randomly selected train trips.
-What is the probability that at least nineteen trips out of twenty arrive to Chicago on time? Round to the nearest thousandth.

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Definitions:

Present Value of Annuity

The current worth of a series of cash flows generated by an annuity, calculated using a particular rate of return or discount rate.

Series of Payments

Regular payments made over a period, often associated with loans or annuities, where each payment is the same amount.

Semiannual Payments

Payments that are made twice a year, often encountered in the context of loan repayments or bond interest payments.

Compounded Semiannually

Compounded semiannually refers to the process of applying interest to an initial amount and the accumulated interest over two periods within a year.