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Old 02-10-2013, 10:51 AM    (permalink
Malaka
Thinking of Juan
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Quote:
Originally Posted by bantx View Post
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.
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Last edited by Malaka : 02-10-2013 at 11:06 AM.
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