X = defective item
p = probability that royal souvenir mugs will be defective
p=0.06
q=1−p=1−0.06=0.94
n=20
The probability that the sample contains less than 5 defective mugs is:
P(X<5)=P(X=0)+P(X=1)+P(X=2)+P(X=3)+P(X=4)
P(X<5)=[20C0(0.06)0(0.94)20−0]+[20C1(0.06)1(0.94)20−1]+[20C2(0.06)2(0.94)20−2]+[20C3(0.06)3(0.94)20−3]+[20C4(0.06)4(0.94)20−4]
P(X<5)=0.2901+0.3703+0.0449+0.0860+.0233=0.8146
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