Estimate the Indicated Probability by Using the Normal Distribution as an Approximation

question 59

Multiple Choice

Estimate the indicated probability by using the normal distribution as an approximation to the binomial distribution. Two percent of hair dryers produced in a certain plant are
Defective. Estimate the probability that of 10,000 randomly selected hair dryers, at least 219
Are defective.

• A)0.0823
• B)0.9066
• C)0.0869
• D)0.0934

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Definitions:

Glass-Steagall Act

A U.S. law enacted in 1933, which separated commercial banking from investment banking, repealed in 1999.

1999 Repeal

Refers to the revocation of a law or act; often mentioned in economic contexts, such as the repeal of financial regulations or acts in 1999.

Financial Crisis

A situation where the value of financial institutions or assets drops rapidly, leading to a loss of wealth, reduced access to credit, and, in some cases, bank failures.

Central Banks

Institutions that manage the currency, money supply, and interest rates of a state or country.