Let X Be a Binomial Random Variable with N =

question 95

Short Answer

Let x be a binomial random variable with n = 25 and p = 0.3.
Is the normal approximation appropriate for this binomial random variable?
______________
Find the mean for x.
______________
Find the standard deviation for x.
______________
Use the normal approximation to find .
______________
Use the cumulative binomial probabilities table in Appendix 1 of your book to calculate the exact probability, above.
______________
Compare the results of the last two questions. Was your approximation close, or far, from the exact answer?
______________

---

Definitions:

Slightly Elastic

Slightly elastic refers to a situation where a small change in price leads to a relatively small change in the quantity demanded or supplied.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating its sensitivity to price changes.

Total Revenue

The total amount of money generated by the sale of goods or services related to the company's primary operations.

Elastic

Describes a situation where the demand or supply for a good or service significantly changes in response to a change in price.