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Suppose you purchase for your firm 8 used cars from an auto leasing company that has 30 cars available. Unknown to you, 60% (that is,
Suppose you purchase for your firm 8 used cars from an auto leasing company that has 30 cars available. Unknown to you, 60% (that is, 18) of the 30 cars have falsified odometer readings.
a. Use the hypergeometric distribution and calculate the probability that 6 of the 8 cars you purchased have falsified odometer readings.
b. Now calculate the probability asked for in (a) using the binomial distribution.
c. Which answer - (a) or (b) - is correct? Why?
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