Question

A certain new type of business succeeds 60% of the time. Suppose that 3 such businesses open (where they do not compete with each other, so it is reasonable to believe that their relative successes would be independent). The probability that all 3 businesses succeed is:

Answer 1

Answer:

0.216

Step-by-step explanation:

Given that a certain new type of business succeeds 60% of the time.

3 such businesses   are tested for success.

Since these three businesses open (where they do not compete with each other, so it is reasonable to believe that their relative successes would be independent). we can say X no of successful businesses is Binomial

with p = 0.6 and n =3

Required probability

=The probability that all 3 businesses succeed is:

= $P(X=3)\\= 0.6^3\\= 0.216$