Question

ast records indicate that the probability of online retail orders that turn out to be fraudulent is 0.08. Suppose​ that, on a given​ day, 23 online retail orders are placed. Assume that the number of online retail orders that turn out to be fraudulent is distributed as a binomial random variable. Complete parts​ (a) through​ (d) below.What are the mean and standard deviation of the number of online retail orders that turn out to be​ fraudulent?

Answer 1

The mean of the number of fraudulent online retail orders is 1.84 and the standard deviation is 1.30.

Step-by-step explanation:

The mean and standard deviation of the number of online retail orders that turn out to be fraudulent can be calculated using the formula for a binomial random variable.

The mean, denoted as μ, is equal to the product of the number of trials (23) and the probability of success (0.08). So, μ = 23 * 0.08 = 1.84.

The standard deviation, denoted as σ, is equal to the square root of the product of the number of trials, the probability of success, and the probability of failure (1 - 0.08). So, σ = sqrt(23 * 0.08 * (1 - 0.08)) = 1.30.