Consider a Binomial Random Variable X with N = 300

question 27

Short Answer

Consider a binomial random variable X with n = 300 and p = 0.02. Approximate the values of the following probabilities.
a. P(X = 4).
b. P(X  5).
c. P(X  8).

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Definitions:

Cash Payback Period

The duration required for an investment to generate cash flows sufficient to recover the initial investment cost.

Useful Life

The estimated duration a fixed asset is expected to be productive for its intended use, impacting depreciation calculations.

Net Cash Flows

The amount of cash that is generated or lost by a business during a given period, taking into account cash inflows and outflows from operating, investing, and financing activities.

Annual Incomes

The total amount of income received annually from all sources before any deductions.