A Statistics Department is contacting alumni by telephone as

A Statistics Department is contacting alumni by telephone asking for donations to help fund a new computer laboratory. Past history shows that 80% of the alumni contacted in this manner will make a contribution of at least $50. A random sample of 20 alumni is selected. Let x represent number of alumni that makes at contribution of at least  $50.

How many alumni would you expect to make a contribution of at least $50?

Solution

we expect 0.8*20 = 16 to make contribution of atleast $50