We have that
P(crash) = 0.05
n = 25
This follows binomial distribution.
The binomial probability is calculated by the formula:
P(X=m)=C(n,m)⋅pm⋅(1−p)n−m
i. m = 3
P(X=3)=C(25,3)⋅0.053⋅(1−0.05)25−3=3!22!25!⋅0.053⋅0.9522=0.093
ii. m ≤ 3
P(X≤3)=P(X=0)+P(X=1)+P(X=2)+P(X=3)
P(X=0)=C(25,0)⋅0.050⋅0.9525=0.277
P(X=1)=C(25,1)⋅0.051⋅0.9524=0.365
P(X=2)=C(25,2)⋅0.052⋅0.9523=0.231
P(X≤3)=0.277+0.365+0.231+0.093=0.966
Answer:
I. 0.093
ii. 0.966
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