A person selling their house plans on accepting the first offer above $450,000. Assume thatall offers for the house are independent random variables denotedXwit common CDFF(x), where the units ofXandxa dollars.Note: Your answers should be in term ofthe functionF.(a)1What is the probability th

College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter9: Counting And Probability
Section9.3: Binomial Probability
Problem 2E: If a binomial experiment has probability p success, then the probability of failure is...
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A person selling their house plans on
accepting the first offer above $450,000.
Assume thatall offers for the house are
independent random variables denotedXwith
common CDFF(x), where the units ofXandxare
dollars.Note: Your answers should be in terms
ofthe functionF.(a)1What is the probability that
any given offer is greater than $450,000?
(b)5LetNbe the number of offers required until
there is an offer above $450,000
(includingthe offer above $450,000). What is
the probability that the first offer above
$450,000is thenth offer? What is the
distribution ofN?
(c)2On average, how many offers would the
vendor expect to receive (including the
offerabove $450,000) before they sell the
house?
Transcribed Image Text:A person selling their house plans on accepting the first offer above $450,000. Assume thatall offers for the house are independent random variables denotedXwith common CDFF(x), where the units ofXandxare dollars.Note: Your answers should be in terms ofthe functionF.(a)1What is the probability that any given offer is greater than $450,000? (b)5LetNbe the number of offers required until there is an offer above $450,000 (includingthe offer above $450,000). What is the probability that the first offer above $450,000is thenth offer? What is the distribution ofN? (c)2On average, how many offers would the vendor expect to receive (including the offerabove $450,000) before they sell the house?
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