A Bank believes that 83% of its customers prefer the bank to close early on Friday but be open on Saturday morning. Suppose 8 customers are randomly surveyed, and that the binomial distribution applies.

(a) What is the probability that exactly 3 of the surveyed customers like the Saturday option?

(b) What is the probability that exactly 5 of these customers like the Saturday option?

(c) What is the probability that at most 5 customers in the sample like the Saturday option?

(d) What is the probability that at least 5 of them like the Saturday option?

Answer :

Given :

Probability of success $(p) = 0.83$

Sample size $(n) = 8$

Solution :

A) The probability that exactly 3 of the surveyed customers like the Saturday option :

$$P(x = 3) = \binom{n}{x} \cdot p^x \cdot (1-p)^{n-x}$$ $$= \binom{8}{3} \cdot 0.83^3 \cdot (1 – 0.83)^{8-3}$$ $$= 0.0045$$

B) The probability that exactly 5 of these customers like the Saturday option :

$$P(x = 5) = \binom{n}{x} \cdot p^x \cdot (1-p)^{n-x}$$ $$= \binom{8}{5} \cdot 0.83^5 \cdot (1 – 0.83)^{8-5}$$ $$= 0.1084$$

C) The probability that at most 5 customers in the sample like the Saturday option :

$$P(x \leq 5) = \sum_{0}^{5} \binom{n}{x} \cdot p^x \cdot (1-p)^{n-x}$$ $$= \sum_{0}^{5} \binom{8}{x} \cdot 0.83^x \cdot (1 – 0.83)^{8-x}$$ $$= 0.1412$$

D) The probability that at least 5 of them like the Saturday option :

$$P(x \geq 5) = \sum_{5}^{8} \binom{n}{x} \cdot p^x \cdot (1-p)^{n-x}$$ $$= \sum_{5}^{8} \binom{8}{x} \cdot 0.83^x \cdot (1 – 0.83)^{8-x}$$ $$= 0.9672$$

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