Industry standards suggest that 8 percent of new vehicles re

Industry standards suggest that 8 percent of new vehicles require warranty service within the first year. Jones Nissan in Sumter, South Carolina, sold 12 Nissans yesterday. (Round your Mean answer to 2 decimal places and the other answers to 4 decimal places.)

Solution

Given X~Binomial(n=12, p=0.08)

P(X=x)=12Cx*(0.08^x)*(0.92^(12-x))

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(a) P(X=0) = 12C0*(0.08^0)*(0.92^(12-0)) = 0.3676664

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(b) P(X=1) = 12C1*(0.08^1)*(0.92^(12-1)) = 0.3836519

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(c) P(X=2) = 12C2*(0.08^2)*(0.92^(12-2)) =0.1834857

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(d) mean=n*p= 12*0.08=0.96

standard deviation =sqrt(n*p*(1-p))

=sqrt(12*0.08*0.92)

=0.9398