Consider a binomial experiment with n = 20 and p = .70.

a.Compute f(12) (to 4 decimals).

b.Compute f(16) (to 4 decimals).

c.Compute P(x 16) (to 4 decimals).

d.Compute P(x 15) (to 4 decimals).

e.Compute E(x).

f.Compute Var(x) (to 1 decimal) and (to 2 decimals).

Var(x)

Var(x)=npq=4.2

Step-by-step explanation:

Given that X is binomial n=20: p=0.70

a) Compute f(12) (to 4 decimals).

=

b) Compute f(16) (to 4 decimals).

=

c) Compute P(x <16) (to 4 decimals).

=

d) Compute P(x <15) (to 4 decimals).

=

e) Compute E(x). =np = 14

f) Compute Var(x) (to 1 decimal) and (to 2 decimals).

Var(x)=npq=4.2

part a- option 1 is exponential and increases 130% per year. option 2 increases $300 per year and it's linear.

part b- f(n)=1000+300n option 2

f(n)=1000(1.30)^n option 1

part c- f(20)=1000+300(20)

f(20)=1000+6000

f(20)=7,000 after 20 years for option 1

f(20)=1000(1.30)^20

f(20)=1000(190.04)

f(20)=190,040 after 20 years for option 2

we can see that there would be a significant difference in belinda's investment if she uses option 2 over option 1. there is a huge difference of 190,040 - 7,000 = 183,040 dollars.