Question

Life insurance salesman meets his prospective customers separately. At each meeting, he makes the same effort to persuade the prospective client to be insured. The vendor's understanding after a long term in the insurance business is that the probability of persuading the customer to be insured (probability of success) is 0,1. What is the probability in 4 trials to insure one of them?

Answer 1

Probability of success (P)= 0.1

Sample size (n) = 4

Number of successes = 1

formula for binomial distribution is

P(X) = nCx * p^x * (1 - p)^n-x

P(X=1) = 4C1 * 0.1¹ * (1 - 0.1)4-1

P(X=1) = 0.2916

probability in 4 trials to insure one of them = 0.2916