Refer to Exercise 5.27 where 30% of all admitted patients fail to pay their bills and the debts are eventually forgiven. Suppose that the clinic treats 2000 different patients over a period of 1 year, and let x be the number of forgiven debts.
a. What is the mean (expected) number of debts that have to be forgiven?
b. Find the variance and standard deviation of x.
c. What can you say about the probability that x will exceed 700?
Exercise 5.27
Records show that 30% of all patients admitted to a medical clinic fail to pay their bills and that eventually the bills are forgiven. Suppose n = 4 new patients represent a random selection from the large set of prospective patients served by the clinic.