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Many utility companies promote energy conservation by
Chapter 3, Problem 43E(choose chapter or problem)
Problem 43E
Many utility companies promote energy conservation by offering discount rates to consumers who keep their energy usage below certain established subsidy standards. A recent EPA report notes that 70% of the island residents of Puerto Rico have reduced their electricity usage sufficiently to qualify for discounted rates. If five residential subscribers are randomly selected from San Juan, Puerto Rico, find the probability of each of the following events:
a All five qualify for the favorable rates.
b At least four qualify for the favorable rates.
Questions & Answers
QUESTION:
Problem 43E
Many utility companies promote energy conservation by offering discount rates to consumers who keep their energy usage below certain established subsidy standards. A recent EPA report notes that 70% of the island residents of Puerto Rico have reduced their electricity usage sufficiently to qualify for discounted rates. If five residential subscribers are randomly selected from San Juan, Puerto Rico, find the probability of each of the following events:
a All five qualify for the favorable rates.
b At least four qualify for the favorable rates.
ANSWER:
Solution
Step 1 of 3
Given that 70% of the residents qualify for the favourable rates
Then P=0.7
and q=1-p
=1-0.7
=0.3
Five residents are randomly selected
n=5
Let X be the no. of residents qualify for the favourable rates
Then X
The pmf of binomial distribution is