Question

Past records indicate that the probability of online retail orders that turn out to be fraudulent is 0.08. Suppose that, on a given day, 21 online retail orders are placed. Assume that the number of online retail orders that turn out to be fraudulent is distributed as a binomial random variable. What is the probability that two or more online retail orders will turn out to be fraudulent? (Type an integer or a decimal. Round to four decimal places as needed.) HIT

Answer 1

& Solution - Let X: No. of fraudulest Alts retail orders X = {0, 1,2.... 213 P = prope of fraudulest orders 9 = 1-p= 0.92 Here X ~ Binomial (n=2), p = 0.08) . Its pof is Plad = 21 Cn (0.08) (0.92) 0.08 2x n=0,), 221 .تزاء The poob. that two co more online retail orders will turn out to be fraudulest is PCX > 2) = )-P( x2) -- [plo)+pci = 1 - [ 21 Co (0.08)° (0-42,21+ 21G, (0.08)" (092) 20] = 1- [0.1736+ 0.317] 0.4906 P(x 7,2) 0.5094