Company been operating for 73 days. Probability customers exceeding credit limit is 0.06. One day, 23 customers ordered. Customers exceeding limit on that day?

Question

Binomial distribution

Answer 1

I'm not really sure what question you are trying to ask, but I'll give you the formula you would need and then you can plug in the correct inputs later.  You would need the binomial distribution to solve this.

 

nCk * P(event)^k * P(event not happening)^(n-k)

 

Total combinations of an event * P(event)^(# of times event happens) * P(event doesn't happen)^(# of times it doesn't happen)

 

So say the question is "what are the odds that 1 customer exceeds the limit?"

 

23C1 * (.06)^1 * (1-.06)^(23-1)

(23!)/(22!*1!) * .06 * .94^22 =

23 * .06 * .94^22 =

.35

 

You should be able to plug in whatever your homework was actually asking from here.