X ~ Bin ( n , p)
The probability that a random sample of 60 households will have exactly 20 households with 3 or more vehicles is 0.90931
What is mean and standard deviation?
Using Normal Approximation to Binomial
Mean = n * P = ( 60 * 0.3 ) = 18
Variance = n * P * Q = ( 60 * 0.3 * 0.7 ) = 12.6
Standard deviation = √(variance) = √(12.6) = 3.5496
P ( X = 20 )
Using continuity correction
P( n - 0.5 < X < n + 0.5 )
= P ( 20 - 0.5 < X < 20 + 0.5 )
= P ( 19.5 < X < 20.5 )
Using EXCEL,
P ( 19.5 < X < 20.5 )
= P(X < 20.5) - P(X < 19.5)
= BINOM.DIST ( 20.5 , 60 , 0.30, TRUE) - BINOM.DIST ( 19.5 , 60 , 0.30, TRUE)
= 0.7622 - 0.66916
= 0.0931
Hence, the probability that a random sample of 60 households will have exactly 20 households with 3 or more vehicles is 0.90931
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