Use the Normal Distribution to Approximate the Desired Probability

question 74

Multiple Choice

Use the normal distribution to approximate the desired probability.
-A coin is tossed 20 times. A person, who claims to have extrasensory perception, is asked to predict the outcome of each flip in advance. She predicts correctly on 11 tosses. What is the probability of being correct 11 or more
Times by guessing? Does this probability seem to verify her claim?

• A) 0.4129, yes
• B) 0.0871, no
• C) 0.0871, yes
• D) 0.4129, no

---

Definitions:

Liquidity Ratios

Measures that indicate a company's ability to meet its short-term debt obligations.

Long Period Of Time

A duration that extends over a considerable number of years, often used to refer to investments, strategic planning, or long-term goals.

Statement Of Income

Also known as the income statement, it's a financial report that shows a company's revenues, expenses, and profits over a specific period.

Vertical Analysis

A financial analysis method that expresses each item in a financial statement as a percentage of a base figure for the same period.