The binomial experiment requires that the successes and failure probabilities be constant from one trial to the next and also that these two probabilities be equal to each other.
Garnet Corporation insured a building for $370,000 for one year at a premium rate of $6.50 per thousand. Three months later the Garnet Corporation sold the building and canceled the policy. The insurance company refunded the remaining three-quarters of the premium at the short-rate based on a penalty of 10% of the annual premium. Compute the amount the insurance company refunded.
When reporting the results of a statistical analysis, it would be more appropriate to report that the research hypothesis has been "supported" rather than "proven."
XYZ, Inc. plans to purchase 460 units of a certain component used in building computers in their U.S. factory. XYZ, Inc. can purchase the components from country A at a price of $42 each plus an ad valorem duty of 42%, from country B at a price of $54 each plus an ad valorem duty of 2%, or from a domestic manufacturer at a price of $51 each. They take the lowest bid. Compute the amount the 460 units will cost XYZ, Inc.