SOLUTION: Based on past data, approximately 30% of the oil wells drilled in areas having a certain favorable geological formation have struck oil. A company has identified 5 locations that

Question 1120199: Based on past data, approximately 30% of the oil wells drilled in areas having a certain
favorable geological formation have struck oil. A company has identified 5 locations that
possess this information. Assuming that the chance of striking oil on any location is
independent of any others, calculate the probability that exactly 2 of the 5 wells strike oil.
Answer by rothauserc(4718) (Show Source): You can put this solution on YOUR website!
use the binomial probability formula
:
Probability (P) (k successes in n trials) = nCk * p^k * (1-p)^(n-k), where nCk = n! / (k! * (n-k)!)
:
k=2, n=5, p=0.30
:
P (2 successes in 5 trials) = 5C2 * (0.30)^2 * (1-0.30)^(5-2) = 0.3087
:

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