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Assume that 8% of people have AB blood. A hospital blood bank needs ABblood so the blood bank begins checking potential donors.
Use this Excel file geometric probabilities (enable the macro after opening the file) or this Excel file geometric probabilities 2 to assist you with the geometric probability calculations required to answer the questions below.
Question 1. What is the probability that the first AB donor is the 5th person checked? Use 4 decimal places.
Question 2. On average, how many donors must be checked until the first donor with AB blood is found? Use 2 decimal places.
Question 3. What is the probability that there is a AB donor among the first 6 donors checked? Use 3 decimal places.
Question 4. What is the probability that we won't find a AB donor before the 11 person, that is, what is the probability that the first AB donor is not among the first 10 donors? Use 3 decimal places.
Assume that an investor is risk-neutral (i.e. assume that the investor always chooses the investment with the higher expected rate of return even.
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