We have that
P(crash) = 0.05
n = 25
This follows binomial distribution.
The binomial probability is calculated by the formula:
i. m = 3
"P(X=3)=C(25,3)\\cdot 0.05^3 \\cdot (1-0.05)^{25-3}=\\frac{25!}{3!22!}\\cdot0.05^3\\cdot0.95^{22}=0.093"
ii. m ≤ 3
"P(X\u22643)=P(X=0)+P(X=1)+P(X=2)+P(X = 3)"
"P(X=0)=C(25,0)\\cdot 0.05^0 \\cdot 0.95^{25}=0.277"
"P(X=1)=C(25,1)\\cdot 0.05^1 \\cdot 0.95^{24}=0.365"
"P(X=2)=C(25,2)\\cdot 0.05^2 \\cdot 0.95^{23}=0.231"
"P(X\\le3)=0.277+0.365+0.231+0.093=0.966"
Answer:
I. 0.093
ii. 0.966
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