Question

CNBC.com reported in 2017 people have saved only a few hundred dollars for retirement and people have zero savings. If there are an estimated 42,729,344 persons more than 64 years old, how many people have not properly prepared for their retirement? Round to the nearest whole person.

Answer 1

Using the binomial distribution, it is found that 29,483,247 people have not properly prepared for their retirement.

What is the binomial probability distribution?

It is the probability of exactly x successes on n repeated trials, with p probability of a success on each trial.

The expected value of the binomial distribution is:

E(X) = np

For this problem, the parameters are given as follows:

• n = 42,729,344, as there are 42,729,344 persons more than 64 years old.
• p = 0.69, as the percentages given are 35%(saved a bit) and 34%(saved none), hence p = 0.35 + 0.34 = 0.69.

Then the expected value is found as follows:

E(X) = np = 42,729,344 x 0.69 = 29,483,247

29,483,247 people have not properly prepared for their retirement.

More can be learned about the binomial distribution at https://brainly.com/question/24863377

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