Mean and standard deviation of number of customers

Assignment Help Finance Basics
Reference no: EM13789654

When a customer places an order with Rudy's On-Line Office Supplies, a computerized accounting information system (AIS) automatically checks to see if the customer has exceeded his or her credit limit. Past records indicate that the probability of customers exceeding their credit limit is 0.05. Suppose that, on a given day, 20 customers place orders. Assume that the number of customers that the AIS detects as having exceeded their credit limit is distributed as a binomial random variable.

a. What are the mean and standard deviation of the number of customers exceeding their credit limits?

b. What is the probability that zero customers will exceed their limits?

c. What is the probability that one customer will exceed his or her limit?

d. What is the probability that two or more customers will exceed their limits?

Reference no: EM13789654

Questions Cloud

Five forces of competition model : From the e-Activity (Use the Internet to research the industry of your choice in light of the Five Forces of Competition Model), analyze the industry you selected using the Five Forces of Competition Model to determine the impact of each of the fi..
Problems based on ethical issues : What action do you feel compelled to take concerning this situation both with Karl and your colleagues? Why?
Summarise the macroeconomic event in the news article : Summarise the macroeconomic event in the news article and mention your plan and discuss in the essay - Apply AS-AD, Aggregate Expenditure Model, Money market diagram
Benefits of teams for individual team members : Describe the benefits of teams for both health care organizations and for individual team members. Discuss the characteristics of dysfunctional teams and potential methods for resolving the dysfunction.
Mean and standard deviation of number of customers : a. What are the mean and standard deviation of the number of customers exceeding their credit limits? b. What is the probability that zero customers will exceed their limits?
How to find trustworthy information ? : Can the media influence the decisions that you make and how you feel about a topic on scientific research? Provide at least one example.
Write an essay about achievement of united nation : Write an essay about achievement of united nation with evidence.
Commute distance for all california commuters : An investigator claims, with 95 percent confidence, that the interval between 10 and 16 miles includes the mean commute distance for all California commuters. To have 95 percent confidence signifies that:
Influencing leaders toward organizational change : Influencing Leaders toward Organizational Change

Reviews

Write a Review

Finance Basics Questions & Answers

  A 625 semiannual coupon and a par value of 1000 the going

moerdyk corporations bonds have a 10-year maturity a 6.25 semiannual coupon and a par value of 1000. the going

  Determine break-even point

Determine break-even point? If an organization's fixed costs increase, what happens to the break-even point? Explain how can the break-even point be lowered?

  Aswer the following multiple-choice question total

a company has only common stock outstanding.required answer the following multiple-choice question. total stockholders

  Actual and accounting depreciation are both 10%

Actual and accounting depreciation are both 10%, which the company replaces. Taxes are 0%. ROE is 12% and there are 10 million shares outstanding.

  Which of the following should be included in initial outlay

Which of the following should be included in the initial outlay?

  Possible capital project using the npv method

The finance department of a large corporation has evaluated a possible capital project using the NPV method, the Payback Method, and the IRR method. The analysts are puzzled, since the NPV indicated rejection, but the IRR and Payback methods both..

  Difference between a simple interest note and a simple disco

You decide to take out an ordinary interest loan of $30,000 at 4%, on a 90 day note. a.) In 45 days you decide to make a payment of $10,000 on the loan. What is your new principal? Explain how you got the answer. b.)How much did you pay at the end of..

  Q1 in the early december 2010 a friend recommended john to

q1. in the early december 2010 a friend recommended john to buy stock in abc aviation inc. pai. at that time it was in

  Most corporate bonds in the united states make coupon

1) Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 25 years to maturity, and a..

  Describe what gain is recognized in the accounting

Describe what gain is recognized in the accounting year January 1 to December 31, 2010? Each contract is on 1000 barrels of oil.

  Computation of unemployment rate

Computation of unemployment rate and Assume the share of whites in the labour force is 82% and the unemployment rate

  At what level of unit sales will the company break

canvas reproductions has fixed operating costs of 12500 and variable operating costs of $5.51 per unit and sells its paintings for $22.39 each. at what level of unit sales will the company break even in terms of EBIT?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd