Problem

The unemployment rate in a city is $14 \%$. If 8 people from the city are sampled at random, find the probability that at most 2 of them are unemployed. Carry your intermediate computations to at least four decimal places, and round your answer to two decimal places. (If necessary, consult a list of formulas.)

Solution

Step 1 :This problem can be solved using the binomial distribution model, which is appropriate when the trials are independent, the number of trials is fixed, each trial outcome can be classified as a success or failure, and the probability of success is the same for each trial.

Step 2 :In this case, the probability of success (unemployment) is 14% or 0.14. The number of trials is 8 (the number of people sampled). We are asked to find the probability of at most 2 successes (unemployed people).

Step 3 :The formula for the binomial probability is: \(P(X = k) = C(n, k) * (p^k) * ((1 - p)^(n - k))\), where \(P(X = k)\) is the probability of k successes in n trials, \(C(n, k)\) is the number of combinations of n items taken k at a time, p is the probability of success, and n is the number of trials.

Step 4 :We need to calculate this probability for k = 0, 1, and 2, and then sum these probabilities to find the probability of at most 2 successes.

Step 5 :Using the given values, we find the probabilities for k = 0, 1, and 2 to be approximately 0.2992, 0.3897, and 0.2220 respectively.

Step 6 :Summing these probabilities gives a final probability of approximately 0.911.

Step 7 :Final Answer: The probability that at most 2 of them are unemployed is \(\boxed{0.91}\).

From Solvely APP
Source: https://solvelyapp.com/problems/24996/

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