A company employs 300 employees. Each year, there is a 30 percent turnover rate for employees. We want to do a normal approximation to the binomial distribution of the number of employees who leave each year. For this normal approximation, the mean is ______ and the standard deviation is _____.
A)90; 63
B)90; 7.937
C)90; 30
D)90; 15

Question

Quizplus · Accepted Answer

The mean (μ) of the binomial distribution can be found using the formula μ = np, where n is the number of trials (in this case, 300 employees) and p is the probability of success (in this case, the turnover rate of 0.30). Thus, μ = 300 * 0.30 = 90. The standard deviation (σ) of the binomial distribution is found using the formula σ = sqrt(np(1-p)), so σ = sqrt(300*0.30*0.70) ≈ 7.937.

A Company Employs 300 Employees