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Binomial Experiment Assignment

Author:
February 25th, 2020

To avoid unpleasant surprises when the statement comes, you try to record all of your credit card transactions in a ledger.  Unfortunately, you tend to neglect to record about 5% of your purchases.

Suppose last month you had 25 purchases on your credit card account. When the statement arrives, you count the number of purchases you forgot to record.  The random variable X represents the number of unrecorded purchases in a month with 25 transactions.

Explain WHY this is a binomial experiment.

 

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