Originally Posted by bantx
p = probability of audit = .09
n = probability of no audit = .91
(p + n)^6 Isn't this just one?
6Combination5(pn^5) How did you get this? Where did the combo come from?
6 * .09 * .91^5 = .336977 <--answer
Subtract 1 from P and that will always be your N
memorize your formula's malaka statistics is easy, if you know your formula's it's just plug and calculate.
Thanks Bantx! I bolded some questions I had above.
The two rules I have been taught for probability right now are
Gen. Addition Rule: P(A) + P(B) - P(A AND B)
Multiplication Rule: P(A and B)= P(A)P(B)
With those two formulas I have no idea how to get the function you showed me :/
And Bosanac, is there any inflation involved? Or maybe I am thinking too much about economics, but you should probably just deflate the 10,000 using "today's" dollars. If not inflation then the interest is most likely compounded daily/monthly/weekly.
EDIT: Bantx I am given the formulas on the test lol.