Twenty Percent of the Applications Received for a Particular Position

question 53

Essay

Twenty percent of the applications received for a particular position are rejected. What is the probability that among the next fourteen applications,
a.none will be rejected?
b.all will be rejected?
c.less than 2 will be rejected?
d.more than four will be rejected?
e.Determine the expected number of rejected applications and its variance.

---

Definitions:

Savings Rate

The proportion of disposable income that is saved rather than spent on consumption, typically expressed as a percentage.

Credit Cards

Financial instruments issued by banks or financial institutions that allow cardholders to borrow funds with which to pay for goods and services with the obligation to pay back the borrowed money, plus any applicable interest.

Permanent Income Hypothesis

A theory suggesting that people's consumption choices are based on their long-term income expectations rather than their current income.

Induced Consumption

Consumer spending that increases as disposable income rises, and decreases as disposable income falls, unrelated to the level of interest rates.