Question

Trevor is interested in purchasing the local hardware/sporting goods store in the small town of Dove Creek, Montana. After examining accounting records for the past several years, he found that the store has been grossing over $850 per day about 60% of the business days it is open. Assume we take a sample of 10 days to consider the random variable X = number of days with revenue above $850.

a) Find the mean of the binomial distribution

b) Find the standard deviation of the binomial distribution

(Round your answer to three decimal spaces as needed.)

Answer 1

Solution :

Given that,

p = 0.60

q = 1 - p =1-0.60=0.40

n = 10

Using binomial distribution,

Mean = = n * p = 10*0.60=6

Mean = =6

Standard deviation = = n * p * q =  10*0.60*0.40=1.549

Standard deviation = =1.549

answered by: anonymous