In an Effort to Persuade Customers to Reduce Their Electricity

question 104

Short Answer

In an effort to persuade customers to reduce their electricity consumption, special discounts have been offered for low consumption customers. In Florida, the EPA estimates that 70% of the residences have qualified for these discounts.
If we randomly select four residences in Florida, what is the probability exactly two of the four will have qualified for the discounts?
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If, instead, a sample of 20 residences is selected, what is the probability 12 or more will have qualified for the discounts?
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Definitions:

Installment Note

A debt instrument that requires the borrower to make regular payments (installments) of principal and interest over a set period until the total debt is paid.

Journal Entry

A record in the books of accounts that represents a transaction and its effect on various accounts.

Interest Expense

The financial charge for an entity using borrowed capital over a time frame.

Notes Payable

Short-term or long-term liabilities representing amounts owed on written promises to pay a specific sum of money at a future date.