Blanche bought a 5-year cd for $7100 with an apr of 2.8%, compounded quarterly, but she wants to take all her money out 9 months
1 answer:
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Answer:
a) For this case we can find the cumulative distribution function first:
So then by the complement rule we have this:
b)
So then we have this using independence:
We want to find the following probability:
Using the definition of conditional probability we got:
And we see that if a = 2 and b=5 we have:
c) For this case we use independent identical and with the same distribution experiments.
And the result for part b makes sense since we are interest in find the probability that the random variable of interest would be higher than an specified value given another condition with a value lower or equal.
Step-by-step explanation:
Previous concepts
The geometric distribution represents "the number of failures before you get a success in a series of Bernoulli trials. This discrete probability distribution is represented by the probability density function:"
If we define the random of variable Y we know that:
Part a
For this case we can find the cumulative distribution function first:
So then by the complement rule we have this:
Part b
For this case we can use the result from part a to conclude that:
So then we have this assuming independence:
We want to find the following probability:
Using the definition of conditional probability we got:
And we see that if a = 2 and b=5 we have:
Part c
For this case we use independent identical and with the same distribution experiments.
And the result for part b makes sense since we are interest in find the probability that the random variable of interest would be higher than an specified value given another condition with a value lower or equal.