Suppose you know that the proportion of all cars that are foreign is 0.6. Using the table what is the probability of finding 2 cars that are foreign out of 10 cars?
It is a case of binomial distribution because each sample is independent and has only two possible outcomes, either foreign car or not a foreign car.
we have p = 0.6
n = 10 and r = 2
using the binomial formula
setting the given values, we get
this gives us
Probability of finding 2 cars = 45*0.0002359 = 0.0106 (rounded to 4 decimal places)
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