Question

Binomial distribution You have a dental practice which performs 4000 checkups per year. There is an uncommon tooth disorder that occurs in 0.2% of checkups. This disorder appears at random and can occur in a subsequent checkup even after treatment. Currently you send your patients to the hospital for treatment but you could treat the disorder yourself if you bought a $200,000 machine. Each treatment for this disorder brings in $20,000 of profit. Please write out your formulas and when you use Excel please write what you entered e.g. p(k≤ 12∣n=23,p=.1) and = BINOM.DIST (12,23,1,1).

1. On average (i.e. expected value), how many patients do you send to hospital each year?

Answer 1

The average number of patients you send to the hospital each year is 8.

Step-by-step explanation:

To find the average number of patients you send to the hospital each year, you need to calculate the expected value. The expected value is given by the formula:

E(X) = n * p

where n is the number of checkups per year (4000) and p is the probability of the uncommon tooth disorder occurring in a checkup (0.002 or 0.2%).

Plugging in the values:

E(X) = 4000 * 0.002 = 8

Therefore, on average, you would send 8 patients to the hospital each year.