The industry standards suggest that 20% of new vehicles require warranty service within the first year. A dealer sold 20 Nissans yesterday. Use equation for Binomial Probability for part a) and Table II for part b) & c). Show work!
a) What is the probability that none of these vehicles requires warranty service? Use the Binomial equation for P(X=0).
b) What is the probability that exactly one of these vehicles requires warranty service?
c) Determine the probability 3 or more of these vehicles require warranty service.
d) Compute the mean and std. dev. of this probability distribution.