Question

"the national association of realtors estimates that 23% of all homes purchased in 2004 were considered investment properties. if a sample of 800 homes sold in 2004 is obtained what is the probability that at most 200 homes are going to be used as investment property?"

Answer 1

The probability is 0.9162.

The probability for this is given by:

$P(X \leq 200) = \Sigma_{n=0}^{200} (0.23)^x(0.77)^{800-x}$

Using a graphing calculator, we get the probability is 0.9162.