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You Are the Webmaster for Your Firm's Website

question 81

Essay

You are the Webmaster for your firm's Website.From your records,you know that the probability that a visitor will buy something from your firm is 0.23.If the number of visitors in one day is 952,what is the probability that less than 200 of them will buy something from your firm? Use the normal approximation for the binomial.


Definitions:

Regression Equation

A mathematical equation used in statistics to describe the relationship between a dependent variable and one or more independent variables.

CAPM

The Capital Asset Pricing Model; a formula that calculates expected return on investment based on its risk relative to the market.

Risk-Free Rate

The projected gain from an investment without any risk, commonly exemplified by the returns on government bonds.

Market Proxy

A benchmark or index that represents the overall movement of the market, used for comparative analysis of an investment's performance.

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