A report by CNN in February 2007 stated that only 40 of adul

A report by CNN in February 2007 stated that only 40% of adult Americans have separate savings for an emergency. For a random sample of 120 adult Americans, what is the expected number that will have separate savings for an emergency?

Solution

P(Adults having seperate savings) = 0.4

Sample size n =120

The binomial distribution has the following properties:

The expected number (or mean) of the distribution (_x) is equal to n * P = 120 * 0.4 = 48 Answer