Small Business Jobs. According to the U.S. Small Business Administration, small businesses provide 75% of the net new jobs added to the economy. Consider a random sample of 10 new jobs. Let represent the number of the new jobs added to the economy that are provided by small businesses. Use this information for Exercises 71–79.
71. Confirm that this situation represents a binomial experiment.
6.2.71
(i) Either a new job is provided by a small company or it is not provided by a small company. These are the only two possible outcomes and they are mutually exclusive.
(ii) It is known in advance that exactly 10 new jobs will be selected.
(iii) The sample is random, so the outcomes are independent.
(iv) The sample is quite small compared to the size of the population, so that the probability that a new job was provided by a small business remains the same from job to job.