Determining probability values using the Binomial distribution.
An auditor of a large government department is assessing whether guidelines for tendering contracts are followed. It is known that these guidelines are breached in 10% of all contracts. The auditor samples 30 contracts.
1. Use the Binomial distribution to determine the probability that none of the contracts are in breach of the tendering guidelines.
2. Use the Binomial distribution to determine the probability that 4 or fewer contracts are in breach of the tendering guidelines.
3. Use the Binomial distribution to determine the probability that four or more of the contracts are in breach of the tendering guidelines.