A company audit showed that of all bills that were sent out, 71% of them were paid on time, 18% were paid up to 30 days late, 9% were paid between 31 and 90 days late, and 2% remained unpaid after 90 days. One bill is selected at random. a.What is the probability that the bill was paid on time? b.What is the probability that the bill was paid late?
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
A company audit showed that of all bills that were sent out, 71% of them were paid on time, 18% were paid up to 30 days late, 9% were paid between 31 and 90 days late, and 2% remained unpaid after 90 days. One bill is selected at random.
a.What is the probability that the bill was paid on time?
b.What is the probability that the bill was paid late?
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