1.

A plan for an executive travelers' club has been developed by an

airline on the premise that 15% of its current customers would

qualify for membership.

a.)

Assuming the validity of this premise, among 25 randomly selected

current customers, what is the probability that exactly 2

qualify for membership?

Assuming the validity of this premise, among 25 randomly selected

current customers, what is the probability that at least 2

qualify for membership?

b.)

Again assuming the validity of the premise, what are the expected

number of customers who qualify and the standard deviation of the

number who qualify in a random sample of 25 current customers?

c.)

Let X denote the number in a random sample of 25 current customers

who qualify for membership. Consider rejecting the company's premise

in favor of the claim that more than 15% qualify if X >= 7.

What is the probability that the company's premise is rejected

when it is actually valid?

What is the probability that the company's premise is rejected

when in reality 20% qualify?