A firm reports that 25 percent of its accounts receivable from other business fi

Lennie Carroll

Lennie Carroll

Answered question

2021-09-20

A firm reports that 25 percent of its accounts receivable from other business firms are overdue due to economic conditions. If an accountant takes a random sample of seven such accounts, determine the probability of each of the following events by use of the formula for binomial probabilities:
(i) none of the accounts is overdue, and, (ii) exactly two accounts are overdue,

Answer & Explanation

mhalmantus

mhalmantus

Skilled2021-09-21Added 105 answers

Step 1
The binomial probability formula is:
P(X)=(beg{array}{c}nXend{array})pX(1p)nX
(i)
Given:
n=7,p=0.25,and X=0
The probability that none of the accounts is overdue is,
P(X)=(beg{array}{c}nXend{array})pX(1p)nX
P(0)=7!0!(70)!0.250(10.25)70
(0)=0.133483
Hence, the probability that none of the accounts is overdue is 0.1335.
Step 2
(ii)
Given:
n=7,p=0.25,and X=2
The probability that none of the accounts is overdue is,
P(X)=(beg{array}{c}nXend{array})pX(1p)nX
P(2)=7!2!(72)!0.252(10.25)72
P(2)=0.311462
Hence, the probability that none of the accounts is overdue is 0.3115.

Do you have a similar question?

Recalculate according to your conditions!

New Questions in High school probability

Ask your question.
Get an expert answer.

Let our experts help you. Answer in as fast as 15 minutes.

Didn't find what you were looking for?