Answer to Question #135699 in Statistics and Probability for rubao

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

Given that,

Probability of success, p = 0.1

Probability of failure, q = 1 - p = 1 - 0.1 = 0.9

Number of total outcomes n = 4

Number of favorable outcomes x = 1

By using the formula for binomial distribution,

P = $nCx\ *\ p^x * q^{n-x}$

P = $4C1\ *\ 0.1^1\ *\ 0.9^{4-1}$

P = 0.2916

Hence, the probability that in 4 trials of meeting 1 client gets insured is 0.2916