Solved MBA IT Assignment and Notes

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Q6. Suppose two houses in a  thousand catch fire in a year and there are 2000 houses in a village. What is the probability that: (i) none of the houses catch fire and (ii) At least one house catch fire?

Answer:


Given the probability of a house catching fire is:

p = 2/1000 = 0.0002 and n = 2000

Therefore, m = np = 2000 * 0.002 = 4

Therefore, the required probabilities are calculated as follows:

1)      The probability that none catches fire is given by:

P(x=0) = a –m  ( m0/ L0 ) = a -4  =  0.01832
Therefore, the probability that none of the houses catches fire is 0.01832.


2)      The probability that at least one catches fire is given by:

P(x≥1) = 1 – P(x=0) = 1 – 0.01832 = 0.98168
Therefore, the probability that at least one house catches fire is 0.98168

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