Question

# The hedge-fund company Blackstone Group has selected 15 candidates for an interview. There are 120 applicants...

The hedge-fund company Blackstone Group has selected 15 candidates for an interview. There are 120 applicants who are qualified for the position. Of those who applied, 20 applicants have an economic degree.

a/ What is the probability that at most 2 applicants who have an economic degree are selected for an interview?

b/ What is the probability that more applicants who have an economic degree than expected are selected for an interview?

c/ Compute the standard deviation of the applicants who have an economic degree selected for an interview.

(NO Excel)

We can represent the given problem as a Binomial distribution problem as follows.

Suppose, random variable X denotes the number of applicants selected for an interview who have an economic degree.

We consider being selected for an interview having an economic degree as success.

(a)

Required probability is given by

(b)

Expected value

Required probability is given by

(c)

Variance is given by

So, standard deviation is given by