Suppose that during a given week, 20 new customers have signed up for a specialized service your company provides. Eight of these new customers are automotive companies, and the remaining twelve are financial services firms. If a random sample of 5 of these new customers will be selected for a study of customer satisfaction in one month, what is the probability that 2 of the selected customers are financial services firms

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Answer:

0.2384 = 23.84% probability that 2 of the selected customers are financial services firms

Step-by-step explanation:

The customers are chosen from a sample without replacement, which means that the hypergeometric distribution is used.

Hypergeometric distribution:

The probability of x sucesses is given by the following formula:

[tex]P(X = x) = h(x,N,n,k) = \frac{C_{k,x}*C_{N-k,n-x}}{C_{N,n}}[/tex]

In which:

x is the number of sucesses.

N is the size of the population.

n is the size of the sample.

k is the total number of desired outcomes.

Combinations formula:

[tex]C_{n,x}[/tex] is the number of different combinations of x objects from a set of n elements, given by the following formula.

[tex]C_{n,x} = \frac{n!}{x!(n-x)!}[/tex]

20 new customers have signed up for a specialized service your company provides.

This means that [tex]N = 20[/tex]

Twelve are financial services firms.

This means that [tex]k = 12[/tex]

Sample of 5

This means that [tex]n = 5[/tex]

What is the probability that 2 of the selected customers are financial services firms

This is P(X = 2).

[tex]P(X = x) = h(x,N,n,k) = \frac{C_{k,x}*C_{N-k,n-x}}{C_{N,n}}[/tex]

[tex]P(X = 2) = h(2,20,5,12) = \frac{C_{12,2}*C_{8,3}}{C_{20,5}} = 0.2384[/tex]

0.2384 = 23.84% probability that 2 of the selected customers are financial services firms