A house is purchased for $300,000 and its value appreciates by 2.75% per year.In how many years will the house be worth $375,000
1 answer:
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Answer:
(a)
(b) P(1) = 0.740, P(2) = 0.192, and P(3) = 0.050.
(c) The probability that n ≥ 4 is 0.018.
(d) The expected number of residents in the village you must meet before you encounter the first person of Hawaiian ancestry is 3.
Step-by-step explanation:
We are given that on the leeward side of the island of Oahu, in a small village, about 74% of the residents are of Hawaiian ancestry.
Let n = 1, 2, 3, … represent the number of people you must meet until you encounter the first person of Hawaiian ancestry in the village.
(a) We can observe that the above situation can be represented through the geometric distribution because the geometric distribution states that we will keep on going with the trials until we achieve our first success,
Here also, n represent the number of people you must meet until you encounter the first person of Hawaiian ancestry in the village.
So, the probability distribution of the geometric distribution is given by;
where, p = probability that the residents are of Hawaiian ancestry = 74%
(b) The probabilities that n = 1, n = 2, and n = 3 is given by;
P(1) = = 0.74
P(2) = = 0.192
P(3) = = 0.050
(c) The probability that n ≥ 4 is given by = P(n ≥ 4)
P(n ≥ 4) = 1 - P(n = 1) - P(n = 2) - P(n = 3)
= 1 - 0.74 - 0.192 - 0.050
= 0.018
(d) The expected number of residents in the village you must meet before you encounter the first person of Hawaiian ancestry is given by = E(n)
We know that the mean of the geometric distribution is given by;
Mean = =
= = 2.85 or 3 (approx).
we have
Adds both sides
square root both sides
therefore
<u>the answer is</u>
the resulting equation is