Question

In the following problem, check that it is appropriate to use the normal approximation to the binomial. Then use the normal distribution to estimate the requested probabilities. It is known that 76% of all new products introduced in grocery stores fail (are taken off the market) within 2 years. If a grocery store chain introduces 68 new products, find the following probabilities. (Round your answers to four decimal places.)

(a) within 2 years 47 or more fail Incorrect: Your answer is incorrect.

(b) within 2 years 58 or fewer fail

(c) within 2 years 15 or more succeed

(d) within 2 years fewer than 10 succeed

Answer 1

n=

68

p=

0.7600

here mean of distribution=μ=np=		51.68
and standard deviation σ=sqrt(np(1-p))=		3.52
for normal distribution z score =(X-μ)/σx

therefore from normal approximation of binomial distribution and continuity correction:

a)

probability =P(X>=47)=P(Z>(46.5-51.68)/3.522)=P(Z>-1.47)=1-P(Z<-1.47)=1-0.0708=0.9292

b)

probability =P(X<=58)=(Z<(58.5-51.68)/3.522)=P(Z<1.94)=0.9738

c)

P( 15 or more succeed ) =P(at most 53 fails):

probability =P(X<53.5)=(Z<(53.5-51.68)/3.522)=P(Z<0.52)=0.6985

d)

) within 2 years fewer than 10 succeed =P(at least 59 fails):

probability =P(X>58.5)=P(Z>(58.5-51.68)/3.522)=P(Z>1.94)=1-P(Z<1.94)=1-0.9738=0.0262