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

question 41

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

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Definitions:

Strategic Options

Options for future, related business products or strategies.

Scenario Analysis

A process of analyzing possible future events by considering alternative possible outcomes (scenarios), often for the purpose of strategic planning.

Sales Level

The total volume or amount of sales achieved by a company within a specified period.

Payback Period

The length of time required to recover the cost of an investment, calculated by dividing the initial investment by the annual cash inflow.