Answer: P(x ≥ 1) = 0.893
Step-by-step explanation:
We would assume a binomial distribution for the outcome of the investment. The formula is expressed as
P(x = r) = nCr × p^r × q^(n - r)
Where
x represent the number of successes.
p represents the probability of success.
q = (1 - r) represents the probability of failure.
n represents the number of trials or sample.
From the information given,
p = 36% = 36/100 = 0.36
q = 1 - p = 1 - 0.36
q = 0.64
n = 5
Therefore,
P(x ≥ 1) = 1 - P(x = 0)
P(x = 0) = 5C0 × 0.36^0 × 0.64^(5 - 0)
P(x = 0) = 1 × 1 × 0.107
P(x = 0) = 0.107
P(x ≥ 1) = 1 - 0.107 = 0.893
