nture-capital firms provide financing for small, high-risk enterprises that have the potential to become highly profitable. A successful venture-capital firm notes that it provides financing for only 10% of the proposals it reviews. Of the 200 proposals submitted this year, what is the probability that more than 30 will receive financing? Hint: use normal approximation to the binomial distribution.
Venture-capital firms provide financing for small, high-risk enterprises that have the potential to become highly profitable. A successful venture-capital firm notes that it provides financing for only 10% of the proposals it reviews. Of the 200 proposals submitted this year, what is the
Given that
A successful venture-capital firm notes that it provides financing for only 10% of the proposals it reviews.
P=0.10
q= (1-p) = 1-0.10 = 0.90
Proposals submitted this year = 200
Sample size (n) = 200
Here,
n x p = 200 x 0.10 = 20 > 5
n x q = 200 x 0.90 = 180 .5
We use normal approximation to the binomial distribution.
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