Question

The "Liars Index," defined by work done by Jude Werra, states that 18.4% of individuals applying for executive positions in companies lie on their resumes. If the resumes of three executive job applicants are randomly selected, the probability that none lied on their application is:

Answer 1

0.5433 is the probability that out of three executive job applicants, none lied on their application.

Explanation:

We are given the following information:

We treat individuals lying on the resume as a success.

P(Individuals lie on resume) = 18.4% = 0.184

Then the number of job applicants follows a binomial distribution, where

`P(X=x) = \binom{n}{x}.p^x.(1-p)^(n-x)`

where n is the total number of observations, x is the number of success, p is the probability of success.

Now, we are given n = 3

We have to evaluate:

P(None lied on resume)

`P(x =0)\\\\= \binom{3}{0}(0.184)^0(1-0.184)^3\\\\= 0.5433`

0.5433 is the probability that out of three executive job applicants, none lied on their application.