Twelve percent of the customers of a bank overdraw their accounts at least once a month. A sample of eight customers is selected. What is the probability that exactly two customers in the sample will overdraw their account this month
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Assumption: Company has a big customer base.
P(overdraw, once a month) = 0.12
P' = 1 - 0.12 = 0.88
P(Exactly 2 out of 8 customers overdraw)
= 1 - P(6 out of 8 customers did not over draw)
= 1 - 0.88^6
= 1 - 0.46440409...
Oops! Ignore the previous answer.
Here is the correct one:
X is binomial distribution (n=8,p=0.12)
=8C2 .12^2 .88^6
= 18.7 % (approx)
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