Compute Probabilities of Binomial Experiments

question 144

Multiple Choice

Compute Probabilities of Binomial Experiments
-A recent article in the paper claims that government ethics are at an all-time low. Reporting on a recent sample, the paper claims that 30% of all constituents believe their representative possesses low ethical standards. Suppose 20 of a representative s constituents are randomly and independently sampled. Assuming the paper s claim is correct, find the probability that more than eight but fewer than 12 of the 20 constituents sampled believe their representative possesses low ethical standards.

• A) 0.108193
• B) 0.077376
• C) 0.226286
• D) 0.152990

---

Definitions:

Consumer Price Index

A gauge that calculates the mean variation in time of the prices urban consumers pay for a selection of consumer products and services.

Real Rate of Return

The annual percentage return realized on an investment, adjusted for changes in price due to inflation or other external effects.

Portfolio Value

The total worth of all the financial investments held by an individual or institution.

Compounded Quarterly

This refers to the process of applying interest to an initial amount of money (principal) four times a year, at the end of each quarter.