Approximate Binomial Probabilities Using the Normal Distribution

question 86

Multiple Choice

Approximate Binomial Probabilities Using the Normal Distribution
-A local concert center reports that it has been experiencing a 15% rate of no-shows on advanced reservations. Among 150 advanced reservations, find the probability that there will be fewer than 20 no-shows.

• A) 0.2451
• B) 0.7549
• C) 0.7967
• D) 0.3187

---

Definitions:

IFRS

International Financial Reporting Standards, which are global accounting standards for preparing financial statements.

Owners' Equity

The residual interest in the assets of a company after deducting its liabilities, representing the owner's claim against the company's assets.

Cost Method

An accounting method used for investments, where the investment is recorded at cost and adjustments are only made for impairments or additional investments, without recognizing unrealized gains or losses.

Appraisal Method

An evaluation process to determine the value of an asset, often used for real estate and investments, based on various criteria.