Using the binomial distribution, it is found that there is a 0.81 = 81% probability that NEITHER customer is selected to receive a coupon.
For each customer, there are only two possible outcomes, either they receive the coupon, or they do not. The probability of a customer receiving the coupon is independent of any other customer, which means that the binomial distribution is used to solve this question.
Binomial probability distribution
The parameters are:
- x is the number of successes.
- n is the number of trials.
- p is the probability of a success on a single trial.
In this problem:
- For each customer, 10% probability of receiving a coupon, thus .
- 2 customers are selected, thus
The probability that <u>neither receives a coupon is P(X = 0)</u>, thus:
0.81 = 81% probability that NEITHER customer is selected to receive a coupon.
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