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

question 138

Multiple Choice

Estimate the indicated probability by using the normal distribution as an approximation to the binomial distribution.
-In one county, the conviction rate for speeding is 85%. Estimate the probability that of the next 100 speeding summonses issued, there will be at least 90 convictions.

• A)0.1038
• B)0.0420
• C)0.8962
• D)0.3962

---

Definitions:

Determinants of Demand

Factors that influence the quantity of a product or service that consumers are willing and able to buy at a given price.

Sum of Demand Curves

The aggregate demand curve that is obtained by horizontally adding individual demand curves in a market.

Snob Effect

A phenomenon where the demand for a certain good increases as the price increases because the good is perceived as being more desirable, exclusive, or prestigious.

Luxury Goods

High-quality, expensive items that are not essential but are desired for their status symbol and prestige.