Bottomline Ink, a forms managementcompany, fills 100 orders a day with a 2% error rate in the completed orders. Assume this to be a binomial distribution. What is the standard deviation for this distribution?
A) 0.02
B) 1.4
C) 2
D) There is no standard deviation for this type of distribution.

Question

Quizplus · Accepted Answer

The standard deviation for a binomial distribution is calculated as follows:
sqrt(n*p*q)
where n is the number of trials (100 orders), p is the probability of success (98% or 0.98), and q is the probability of failure (2% or 0.02).
Therefore, the standard deviation will be sqrt(100*0.98*0.02) = 1.4, which is option B.

Bottomline Ink, a Forms Managementcompany, Fills 100 Orders a Day