Question

Fifty-five percent of the applications received for a particular credit card are accepted. among the next twelve applications, what is the probability that all will be rejected?

Answer 1

The probability would be 0.00007.

The probability that an applicant is rejected is given by 1-0.55 = 0.45.

The probability that all 12 of the next applicants are rejected is given by:
0.45^12 = 0.00007.

Answer 2

Answer: 0.00007

Explanation:

The binomial distribution formula :-

P(X)=^nC_xp^x(1-p)^{n-x}, P(X) is the probability of getting success in x trials , n is total n umber of trials and p is the probbaility of getting success in each trial.

Given : The probability that the applications received for a particular credit card are accepted = 0.55

The number of applications : n= 12

Then , the probability that all will be rejected (i.e. none of them will be accepted):-

`P(0)=^(12)C_(0)(0.55)^(0)(0.45)^(12)=(0.45)^(12)=0.00006895252355\approx0.00007`

Hence, the probability that all will be rejected = 0.00007