Twenty-Five Percent of the Employees of a Large Company Are

question 97

Essay

Twenty-five percent of the employees of a large company are minorities. A random sample of 7 employees is selected.
a. Define the random variable in words for this experiment.
b. What is the probability that the sample contains exactly 4 minorities?
c. What is the probability that the sample contains fewer than 2 minorities?
d. What is the probability that the sample contains exactly 1 non-minority?
e. What is the expected number of minorities in the sample?
f. What is the variance of the minorities?

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Definitions:

Depreciation

The reduction in the value of an asset over time, due in particular to wear and tear, typically used for tax and accounting purposes.

Noncash Charge

An expense reported in the income statement of a company that does not involve actual cash flow, such as depreciation or amortization.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, used for managing liquidity and ensuring financial stability.

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects revenue from its credit sales by dividing net credit sales by average accounts receivable.