Question

Question 5 According to a report from the Centre for Studying Health, 20% of Americans delay or go without medical care because of concerns about medical costs. Suppose eight individuals are randomly selected from across the country. Required of you: a) What is the probability that none will delay or go without medical care? b) What is the probability that no more than two will delay or go without medical care? c) What is the probability that at least seven will delay or go without medical care? d) What is the expected value of individuals who will delay or go without medical care? e) What is the standard deviation for this distribution?

Answer 1

Solution: p = 0.20 q=0.80 n = 8 P(none will delay or go without medical care) = 0.1678 P ( no more than two will delay or go without medical care) = 0.5033 c) P (at least sevel will delay or go without medical care) = 0.0001 expected value = E(X) = np = 8*0.20 1.6 Standard deviation = SD(X) = sqrt(n*p*q) = sqrt(8*0.8*0.2) = 1.1314