Answer:
Let X be the event of feeling secure after saving $50,000,
Given,
The probability of feeling secure after saving $50,000, p = 40 % = 0.4,
So, the probability of not feeling secure after saving $50,000, q = 1 - p = 0.6,
Since, the binomial distribution formula,
Where,
If 8 households choose randomly,
That is, n = 8
(a) the probability of the number that say they would feel secure is exactly 5
(b) the probability of the number that say they would feel secure is more than five
(c) the probability of the number that say they would feel secure is at most five
