Question

Thirty percent of the CFA candidates have a degree in economics. A random sample of three CFA candidates is selected. What is the probability that none of them has a degree in economics?

Answer 1

Therefore, the probability is P=0.343.

Explanation:

We know that thirty percent of the CFA candidates have a degree in economics. Therefore, p=0.3.

We conclude that seventy percent of the CFA candidates have not a degree in economics. We get:

`q=1-p\\\\q=1-0.3\\\\q=0.7\\`

We calculate the probability that none of them has a degree in economics. We get:

`P=q^3\\\\P=0.7^3\\\\P=0.343\\`

Therefore, the probability is P=0.343.