Compute Probabilities of Binomial Experiments

question 55

Multiple Choice

Compute Probabilities of Binomial Experiments
-We believe that 87% of the population of all Calculus I students consider calculus an exciting subject. Suppose we randomly and independently selected 25 students from the population. If the true percentage is really 87%, find the probability of observing 24 or more of the students who consider calculus to be an exciting subject in our sample of 25.

• A) 0.145666
• B) 0.030760
• C) 0.114907
• D) 0.854334

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Definitions:

Defined Benefit Plans

Pension plans that promise a specified retirement benefit amount, which is determined by factors such as salary history and duration of employment.

Interest Cost Component

The portion of pension expense that represents the increase in the projected benefit obligation due to the passage of time.

Projected Benefit Obligation

An estimate of the total amount an entity is obligated to pay in pension benefits, based on expected future salary increases.

Discount Rate

The interest rate used to discount future cash flows to present value, often used in the calculation of net present value or investment appraisals.