Question

Sixty dash fivesixty-five percent of households say they would feel secure if they had? $50,000 in savings. you randomly select 88 households and ask them if they would feel secure if they had? $50,000 in savings. find the probability that the number that say they would feel secure is? (a) exactly? five, (b) more than? five, and? (c) at most five.

Answer 1

To solve the following problems, we use the binomial probability equation:

P (r) = [n!/(n-r)! r!] p^r q^(n-r)

where,

n = total number of households = 8

r = number of sample

p = probability of success = 65% = 0.65

q = probability of failure = 0.35

A. r = 5

P (r=5) = [8! / 3! 5!] 0.65^5 0.35^3

P (r=5) = 0.28

B. r >5

P (r=6) = [8! / 2! 6!] 0.65^6 0.35^2

P (r=6) = 0.26

P (r=7) = [8! / 1! 7!] 0.65^7 0.35^1

P (r=7) = 0.14

P (r=8) = [8! / 0! 8!] 0.65^8 0.35^0

P (r=8) = 0.03

Therefore total is:

P (r>5) = 0.26 + 0.14 + 0.03 = 0.43

C. r ≤ 5

P (r ≤ 5) = 1 - P (r>5)

P (r ≤ 5) = 1 – 0.43

P (r ≤ 5) = 0.57