More and more households are struggling to pay utility bills given a shaky economy and high heating costs (The Wall Street Journal, February 14, 2008). A representative sample of 500 households was taken to investigate if the type of heating influences whether or not a household is delinquent in paying its utility bill. The following table reports the results. If a household uses natural gas or propane, what is the probability it is delinquent ("Yes") in paying its utility bill. (Round answers to three decimal places.) Type of Heating Heating Oil Delinquent Natural in Payment? Gas Electricity Propane Yes 50 20 15 10 No 240 130 20 15

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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.