Answer:
The probability of Steve agreeing with the company’s claim is 0.50502.
Step-by-step explanation:
Let <em>X</em> denote the number of green candies.
The probability of green candies is, <em>p</em> = 0.20.
Steve buys 30 bags of 30 candies, randomly selects one candy from each, and counts the number of green candies.
So, <em>n</em> = 30 candies are randomly selected.
All the candies are independent of each other.
The random variable <em>X</em> follows a binomial distribution with parameter <em>n</em> = 30 and <em>p</em> = 0.20.
It is provided that if there are 5, 6, or 7 green candies, Steve will conclude that the company’s claim is correct.
Compute the probability of 5, 6 and 7 green candies as follows:
Then the probability of Steve agreeing with the company’s claim is:
P (Accepting the claim) = P (X = 5) + P (X = 6) + P (X = 7)
= 0.17228 + 0.17946 + 0.15328
= 0.50502
Thus, the probability of Steve agreeing with the company’s claim is 0.50502.