Use the information provided in the scenario below to answer the questions that follow.

Scenario A: A recent news article reported that 80% of all Small and Medium Size enterprises (SMEs) in the Manufacturing industry generate a profit in their first year of operation. A sample of 10 new Manufacturing SMEs was selected to determine the probability of generating a profit in their first year.

What is the probability that exactly seven SMEs will generate a profit in their first year?

a.

0.20131

b.

0.00079

c.

0.01174

d.

0.00032

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Question text

Using the information provided in Scenario A above, calculate the expected value and standard deviation for the SMEs?

a.

Expected value = 0.1600 and Standard deviation = 1.2649

b.

Expected value = 8 and Standard deviation = 1.265

c.

Expected value = 8 and Standard deviation = 1.600

d.

Expected value = 0.160 and Standard deviation = 1.600

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