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Business and Management. According to the CICA Business Monitor, 11% of Canada\'

ID: 3330575 • Letter: B

Question

Business and Management. According to the CICA Business Monitor, 11% of Canada's executive chartered accountants are pessimistic about the economy. To check this claim, 49 chartered accountants were randomly selected and asked whether they feel pessimistic about the economy in 2013.

(a) If the claim is true, find the probability (±±0.0001) that exactly nine chartered accountants are pessimistic about the economy.

P(X=9)P(X=9) =

(b) If the claim is true, find the probability (±±0.0001) that at most four chartered accountants are pessimistic about the economy

P(X4)P(X4) =

(c) Suppose 12 chartered accountants are pessimistic about the economy.

P(X12)P(X12) (±±0.0001) =

Conclusion:

Business and Management. According to the CICA Business Monitor, 11% of Canada's executive chartered accountants are pessimistic about the economy. To check this claim, 49 chartered accountants were randomly selected and asked whether they feel pessimistic about the economy in 2013.

(a) If the claim is true, find the probability (±±0.0001) that exactly nine chartered accountants are pessimistic about the economy.

P(X=9)P(X=9) =

(b) If the claim is true, find the probability (±±0.0001) that at most four chartered accountants are pessimistic about the economy

P(X4)P(X4) =

(c) Suppose 12 chartered accountants are pessimistic about the economy.

P(X12)P(X12) (±±0.0001) =

Conclusion:

There is no evidence to suggest the claim is false There is evidence to suggest the claim is false

Explanation / Answer

This would be calculated using binomial probability and the formula for the same has been listed below: -

n!/x!(n-x)!*p^x*q^n-x

n=49, p=0.11, q=0.89

a)

49!/9!40!*0.11^9*0.89^40

0.045796

b)

P(X=0)+P(X=1)+P(X=2)+P(X=3)+P(X=4)

0.3618

c)

49!/12!37!*0.11^12*0.89^37

0.003883