Probability

The Center for Medicare and Medical Services reported that there were 295,000 appeals for hospitalization and other Part A Medicare service. For this group, 40% of first-round appeals were successful (The Wall Street Journal, October 22, 2012). Suppose 10 first-round appeals have just been received by a Medicare appeal office.

  1. Compute the probability that none of the appeals will be successful.
  2. Compute the probability that exactly one of the appeals will be successful.
  3. What is the probability that more than half of the appeals will be successful

Solution:

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