Explanation Given: The interest rates paid by 30 financial institutions on a certain day for money market deposit accounts are shown in the accompanying table: Rate (%) 2 2.25 2.55 2.56 Institutions 1 7 7 1 Rate (%) 2.58 2.60 2.65 2.85 Institutions 1 8 3 2 Table ( 1 ) Let the random variable X denote the interest rate per year paid by a randomly chosen financial institution on its money market deposit accounts. Approach: If x 1 , x 2 , … , x n are the values assumed by the random variable X with associated probabilities P ( X = x 1 ) , P ( X = x 2 ) ,..., P ( X = x n ) , respectively, then the required probability distribution of the random variable X is represented in the form of the table as shown below. Probability Distribution x P ( X = x ) x 1 p 1 x 2 p 2 To determine (b) To find: The probability that the interest rate paid by a financial institution chosen at random is less than 2.56 % per year.

11th Edition

ISBN: 9781337496094

Author: Tan

Publisher: CENGAGE C

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Chapter 8.1, Problem 25E

To determine

(a)

To find:

The probability distribution associated with the given data.

To determine

(b)

To find:

The probability that the interest rate paid by a financial institution chosen at random is less than 2.56% per year.

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Chapter 8.1, Problem 24E

Chapter 8.1, Problem 26E

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Ch. 8.1 - What is a random variable? Give an example.Ch. 8.1 - Prob. 2CQ Ch. 8.1 - Prob. 3CQ Ch. 8.1 - Three balls are selected at random without...Ch. 8.1 - 2.A coin is tossed four times. Let the random...Ch. 8.1 - A die is rolled repeatedly until a 6 falls...Ch. 8.1 - Cards are selected one at a time without...Ch. 8.1 - Prob. 5E Ch. 8.1 - Prob. 6E Ch. 8.1 - Prob. 7E

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(a) To find: The probability distribution associated with the given data.

Solution Summary: The author explains the probability distribution associated with the given data in Table (3).