Question

QUESTION 4 1. In an effort to persuade customers to reduce their electricity consumption, special discounts have been offered for low consumption customers. In Florida, the EPA estimates that 70% of the residences have qualified for these discounts. If we randomly select four residences in Florida, what is the probability exactly two of the four will have qualified for the discounts?

Answer 1

n = 4

p = 0.7

It is a binomial distribution.

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

P(X = 2) = 4C2 * (0.7)^2 * (0.3)^2 = 0.2646