Question

In the past few years, outsourcing overseas has become more frequently used than ever before by U.S. companies. However, outsourcing is not without problems. A recent survey by Purchasing indicates that 20% of the companies that outsource overseas use a consultant. Suppose 15 companies that outsource overseas are randomly selected. a. What is the probability that exactly 5 companies that outsource overseas use a consultant

Answer 1

0.1

Explanation:

please see attached the annotated solution

Given data

p=20%= 0.2

n=15 companies

let x = 5 the number of companies that outsource to overseas consultants

The binomial probability distribution is given as

P(x=λ)=nCx*P^x*q^n-x

we also know that q=1-p