SCENARIO 6-7 A Company Has 125 Personal Computers.The Probability That Any One

question 163

Short Answer

SCENARIO 6-7
A company has 125 personal computers.The probability that any one of them will require repair on a given day is 0.15.
-Referring to Scenario 6-7 and assuming that the number of computers that requires repair on a given day follows a binomial distribution,compute the probability that there will be more than 25 but less than 30 computers that require repair on a given day using a normal approximation.

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Definitions:

Original Maturity

The original duration set during the issuance of a financial instrument, such as a bond or loan, indicating the period until the principal is supposed to be paid back.

GAAP

The standardized set of accounting principles, standards, and procedures issued by the Financial Accounting Standards Board (FASB) for companies in the U.S.

Fair Value

The income from offloading an asset or the charge for transferring a liability in a methodical exchange among participants in the market at the time of determining its value.

Orderly Transaction

A transaction executed in an organized manner where both buyer and seller have access to all pertinent information and neither is under undue pressure.