An insurance company has a call center that makes cold calls
An insurance company has a call center that makes cold calls to individuals trying to sell life insurance.The probability of making a sale is 0.10. Assume binomial properties apply.If an individual in the center makes 20 calls, what is the probability they will make sales on more than 4 calls?
Solution
Note that P(more than x) = 1 - P(at most x).
Using a cumulative binomial distribution table or technology, matching
n = number of trials = 20
p = the probability of a success = 0.1
x = our critical value of successes = 4
Then the cumulative probability of P(at most x) from a table/technology is
P(at most 4 ) = 0.956825505
Thus, the probability of at least 5 successes is
P(more than 4 ) = 0.043174495 [ANSWER]
