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Worked example · 2 min 43 s
The IPO order book: negative binomial, r = 3, p = 0.31
From Week 6, problem set 2. Parts (a) and (b) are read off the Distributions tab: P(Y = 9) = 0.09002 and P(Y ≤ 9) = 0.5636. Parts (c) and (d) condition on the number of commitments, so p cancels and the exact calculator in the Counting tab finishes them: C(8,2)/C(9,3) = 1/3 and C(8,1)/C(9,2) = 2/9.