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Question: According to Cerulli Associates of Boston, 30% of all CPA financial advisors have an average client size between $500,000 and $1 million. Thirty-four percent have an average client size between $1 million and $5 million. Suppose a complete list of all CPA financial advisors is available and 18 are randomly selected from that list.
a. What is the expected number of CPA financial advisors that have an average client size between $500,000 and $1 million? What is the expected number with an average client size between $1 million and $5 million?
b. What is the probability that at least eight CPA financial advisors have an average client size between $500,000 and $1 million?
c. What is the probability that two, three, or four CPA financial advisors have an average client size between $1 million and $5 million?
d. What is the probability that none of the CPA financial advisors have an average client size between $500,000 and $1 million? What is the probability that none have an average client size between $1 million and $5 million? Which probability is higher and why?
Consider the criminological data of Table 7.1 (Example 7.1): (a) Repeat the analysis using (1) the matrix YTY and (ii) the cosine matrix (Section 2.4). Compare your results.
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