According to the Financial Planners Standards Council, 22% of certified financial planners (CFPs) earn between $100,000 and $149,999 per year. Thirty-two percent earn $150,000 or more. Suppose a complete list of all CFPs is available and 18 are randomly selected from that list.
a. What is the expected number of CFPs who earn between $100,000 and $149,999 per year? What is the expected number who earn $150,000 or more per year?
b. What is the probability that at least eight CFPs earn between $100,000 and $149,999 per year?
c. What is the probability that two, three, or four CFPs earn more than $150,000 per year?
d. What is the probability that none of the CFPs earn between $100,000 and $149,999 per year? What is the probability that none earn $150,000 or more per year? Which probability is higher and why?