Question

An economist in Kenya argued that 3.5% of all SMES would file for bank loans next year. For a random sample of 100SMES estimate the probability that at least 3 will file bank loans next year

Answer 1

Answer: 0.6841

Step-by-step explanation:

Given: Probability of all SMES would file for bank loans next year = 3.5% = 0.035

Sample size : n = 100

Binomial probability distribution formula :

$P(X=x)=^nC_xp^x(1-p)^{n-x}$

The probability that at least 3 will file bank loans next year :

$P(x\geq3)=1-P(x$

Hence, the required probability= 0.6841