Answer:
Step-by-step explanation:
We would assume a binomial distribution for the number of college students that said they use credit cards because of the rewards program. 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 = 37% = 37/100 = 0.37
q = 1 - p = 1 - 0.37
q = 0.63
n = 10
a) P(x = 2)
Therefore,
P(x = 2) = 10C2 × 0.37^2 × 0.63^(10 - 2)
P(x = 2) = 45 × 0.1369 × 0.02481557803
P(x = 2) = 0.15
b) P(x>2) = 1 - P(x ≤ 2)
P(x ≤ 2) = P(x = 0) + P(x = 1) + P(x = 2)
P(x = 0) = 10C0 × 0.37^0 × 0.63^(10 - 0) = 0.0098
P(x = 1) = 10C1 × 0.37^1 × 0.63^(10 - 1) = 0.058
P(x = 2) = 0.15
P(x ≤ 2) = 0.0098 + 0.058 + 0.15 = 0.22
P(x>2) = 1 - 0.22 = 0.78
