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Question 1:
A mail-order firm has a circular which elicits a 10% response rate. Suppose 20 of the circulars are mailed as a market test in a new geographic area. Assuming that the 10% response rate is applicable in the new area, determine the probability that
(i) no one responds,
(ii) exactly two people respond,
(iii) less than 20% of the people respond.
Question 2:
The packaging process in a breakfast cereal company has been adjusted so that an average of 13.0 oz of cereal is placed in each package. Of course, not all packages have precisely 13.0 oz because of random sources of variability. The standard deviation of the actual net weight is 0.1 oz and the distribution of weights is known to follow the normal probability distribution.
(i) What is the probability that the weight of the cereal will exceed 13.25 oz?
(ii) Evaluate the probability that a randomly chosen package will contain between 13.0 and 13.2 oz of cereal.
The amount of time it takes the IRS to send a refund to taxpayers is normally distributed with a mean of 12 weeks and a standard deviation of 3 weeks. What proportion of the taxpay
1. HV Inc. is trying to determine the optimal time to undertake a product expansion. The project will require an initial investment of $15M and the firm has a WACC of 3%. The expan
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need to understand bank recon...
5,2,5,8,9,9,8,7,5,2
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A survey showed that 80% of the 1600 adult respondents believe in global warming. Construct a 95% confidence interval estimate of the proportion of adults believing in global warmi
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