Edexcel S2 — Question 5

Exam BoardEdexcel
ModuleS2 (Statistics 2)
TopicApproximating Binomial to Normal Distribution
TypeRepeated binomial experiments

5. As part of a business studies project, 8 groups of students are each randomly allocated 10 different shares from a listing of over 300 share prices in a newspaper. Each group has to follow the changes in the price of their shares over a 3-month period. At the end of the 3 months, \(35 \%\) of all the shares in the listing have increased in price and the rest have decreased.
  1. Find the probability that, for the 10 shares of one group,
    1. exactly 6 have gone up in price,
    2. more than 5 have gone down in price.
  2. Using a suitable approximation, find the probability that of the 80 shares allocated in total to the groups, more than 55 will have decreased in value.