Use the Normal Distribution to Approximate the Desired Probability

question 114

Multiple Choice

Use the normal distribution to approximate the desired probability.
-Merta reports that 74% of its trains are on time. A check of 60 randomly selected trains shows that 38 of them arrived on time. Find the probability that among the 60 trains, 38 or fewer arrive on time. Based on the result, does it seem plausible that the "on-time" rate of 74% could be correct?

• A) 0.0316, no
• B) 0.0409, no
• C) 0.0409, yes
• D) 0.0316, yes

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Definitions:

Net Present Value Rule

A financial metric for evaluating the profitability of an investment, measuring the difference between the present value of cash inflows and the present value of cash outflows over time.

Creates Value

Generally refers to actions or processes that increase the worth of a product, service, or company to stakeholders.

Owners

Individuals or entities that possess legal title or right to a property or asset.