A high-frequency trading system detects that the probability of a trade execution suffering from 'micro-latency' (a delay greater than 10ms) is 0.35. Trades are analyzed in independent batches of 240.
Using a suitable approximation, estimate the probability that there are more than 80 trades with micro-latency in a single batch.
A technician monitors 3 such independent batches. Estimate the probability that there are at least 81 trades suffering from micro-latency in each of the 3 batches.
616 exam-style questions on Edexcel A Level Maths The Normal Distribution, covering 3.1 The Normal Distribution, 3.2 Finding Probabilities for Normal Distributions, 3.3 The Inverse Normal Distribution Function, 3.4 The Standard Normal Distribution, 3.5 Finding the mean and standard deviation, 3.6 Approximating a Binomial Distribution, and 3.7 Hypothesis Testing with the Normal Distribution. Each one has a worked solution and a mark scheme showing where the marks go.