SOLUTION: The Company A has recently signed a purchase agreement with company B to acquire 100 percent interest for $20 Million. Assume that the voting power is only limited to a few trusted

Question 1026649: The Company A has recently signed a purchase agreement with company B to acquire 100 percent interest for $20 Million. Assume that the voting power is only limited to a few trusted shareholders, the decision require a simple majority of the 7 decision-making shareholders. If each is believed to have a 0.35 probability of voting yes on the purchase, what is the probability that will be purchased by Company A?
Answer by ikleyn(52787) (Show Source): You can put this solution on YOUR website!
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The Company A has recently signed a purchase agreement with company B to acquire 100 percent interest for $20 Million. Assume that the voting power is only limited to a few trusted shareholders, the decision require a simple majority of the 7 decision-making shareholders. If each is believed to have a 0.35 probability of voting yes on the purchase, what is the probability that will be purchased by Company A?
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I just solved it in
https://www.algebra.com/algebra/homework/Probability-and-statistics/Probability-and-statistics.faq.question.1026419.html

For your covenience, I am repeating this solution (its core) here again:

The probability to have 4 votes "Yes" is  ;

The probability to have 5 votes "Yes" is  ;

The probability to have 6 votes "Yes" is  ;

The probability to have 7 votes "Yes" is  .

Here the coefficients   are the binomial coefficients, also known as the number of combinations of n things taken k at a time:   = .

Now calculate the sum of these four particular probabilities. It is

   +  +  +  =  = 0.649.

Thus the probability to have the majority of votes "Yes" (4 or 5 or 6 or 7 votes) is equal to 0.649.

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