Probability of defect (p) = 8% = 0.08
Probability of no defect (q) = 1 - p = 1 - 0.08 = 0.92
Sample size (N) = 38
Using binomial theorem,
P(X = x) = NCx x px x q(N - x) = 38Cx x (0.08)x x (0.92)(38 - x), where
NCx = (N!) / [(x!) x {(N - x)!}]
Therefore,
P(X = 2) + P(X = 3) + P(X = 4) = 38C2 x (0.08)2 x (0.92)(38 - 2) + 38C3 x (0.08)3 x (0.92)(38 - 3) + 38C4 x (0.08)4 x (0.92)(38 - 4)
= 703x 0.0064 x (0.92)(36) + 8436 x 0.000512 x (0.92)(35) + 73815x 0.00004096 x (0.92)(34)
= 0.2236 + 0.2333 + 0.1775
= 0.6344
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