Past records indicate that the probability of online retail orders that turn out
ID: 3206965 • Letter: P
Question
Past records indicate that the probability of online retail orders that turn out to be fraudulent is 0.06. Suppose that given day, 23 online retail orders are placed. Assume that the number of online retail orders that turn out to be fraudulent is distributed as a binomial random variable Complete parts (a) through (d) below What are the mean and standard deviation of the number of online retail orders that turn out to be fraudulent? The mean number of online retail orders that turn out to be fraudulent is (Type an integer or a decimal. Round to four decimal places as needed)Explanation / Answer
Binomial Distribution
PMF of B.D is = f ( k ) = ( n k ) p^k * ( 1- p) ^ n-k
Where
k = number of successes in trials
n = is the number of independent trials
p = probability of success on each trial
Mean ( np ) =23 * 0.06 = 1.38
Standard Deviation ( npq )= 23*0.06*0.94 = 1.1389