XYZ University leased N = 5,000 computers for a threeyear period. During this pe

Question

XYZ University leased N = 5,000 computers for a threeyear period. During this period, each computer will fail with a probability of p = 0.01. As the director of the Information Technology department managing the computers, it is important for you to know how many computers will likely to fail within the lease period. The number of failed computers, denoted as X, is a random variable which follows a binomial distribution with probability p = 0.01, compute the likelihood that more than 60 computers will fail within the lease period.  

Explanation / Answer

Solution :

N = 5000

p = 0.01

q = 0.99

P( k out of N ) = ( N! / ( k!( N - k)! ) ) ( pk) ( qN-k)

using binomial probability distribution table

the likelihood that more than 60 computers will fail within the lease period. = P ( 60< x )

= 0.0712

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