Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

(3+4+3 Points) 8. The median household income in US is $56000.20% of the househo

ID: 3366519 • Letter: #

Question

(3+4+3 Points) 8. The median household income in US is $56000.20% of the households earned over $100000. a. In any random 10 households, find the probability that I will find 3 households with b. In a random selection of 10 households, what is the probability that I will find 3 c. What is the probability that I have to make more than 2 picks to find my first income over $100000 and at least 6 houses with income less than $56000? houses with income over $100000? household with income over $56000?

Explanation / Answer

Median household income in US = $56,000

So, P(Household income less than $56,000) = 0.5 and P(Household income greater than $56,000) = 0.5

P(Household income greater than $100,000) = 0.2

P(Household income between $56,000 and $100,000) = P(Household income greater than $56,000) - P(Household income greater than $100,000)

P(Household income between $56,000 and $100,000) = 0.5 - 0.2 = 0.3

P(Household income less than $100,000) = 1 - P(Household income greater than $100,000) = 1 - 0.2 = 0.8

Answer (a)

P(Out of 10, exactly 3 household with income greater than $100,000 and at least 6 household with income less than $56,000 and remaining less than $100,000) = (0.2)3.(0.5)6.(0.8) = 0.001

Answer (b)

P(Out of 10, exactly 3 household with income greater than $100,000 and remaining household with income less than $100,000) = (0.2)3.(0.8)7 = 0.0017

Answer (c)

P(More than 2 picks before finding household with income over $56,000) = P(That household with income less than less than $56,000 is selected two time = (0.5)2 = 0.25