Financial Risk Manager Part 1

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The probability that a patient suffering from typhoid will be treated successfully is 0.8. Forty patients are subjected to treatment. Determine the expected value of the number of patients who are treated successfully.

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NNikitesh

Last updated: February 2, 2026 at 10:22

Explanation:

This question tests the knowledge of the mean of the binomial distribution (n, θ)

The expected number of cured patients = E(X) = nθ = 40 * 0.8 = 32

Note that V(X) = nθ(1 - θ)

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