Use the Normal Approximation to the Binomial to Find That $X$

question 75

Multiple Choice

Use the normal approximation to the binomial to find that probability for the specific value of $X$ .
$$n = 30 , p = 0.4 , X = 5$$

• A) 0.07
• B) 0.17
• C) 0.4
• D) 0.20

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Definitions:

Effective Annual Rate

The interest rate on an investment or loan, calculated annually, that takes into account the effects of compounding.

Simple Interest

Interest calculated only on the original principal and paid only at the maturity date.

GICs

Guaranteed Investment Certificates, a type of Canadian investment that offers a guaranteed rate of return over a fixed period.

Purchasing Power

The value of currency expressed by the amount of goods or services that one unit of money can buy.