Question

A study conducted on American families shows that 18% of these families have medical bills of more than $10,000. Find the probability that among 5 randomly selected American families, at least one has medical bills of more than $10,000.

Answer 1

the probability is 0.6293

Explanation:

The computation of the probability is shown below:

Given that

n = 5

P = 0.18

As it represents the binomial distribution

P(X = x) =
`^NC_x`× p^x × (1 - p) ^(n - x)

P(X > 1) = 1 - P(X < 1)

= 1 - P(X = 0)

= 1 - (
`^5C_0`× (0.18) ^0 × (0.82) ^5)

= 1 - 0.3707

= 0.6293

hence, the probability is 0.6293