The
binomial probability formula is essential for solving problems that ask for the probability of having a specific number of successes in a set of independent trials. In our exercise, the success is defined as a car not developing a major fault within the first three years.
The formula is written as:
\[ P(X=k) = C(n,k) \times p^k \times q^{(n-k)} \]
Where:
- \( P(X=k) \) is the probability of getting exactly \( k \) successes in \( n \) trials.
- \( C(n,k) \) is the number of combinations of \( n \) things taken \( k \) at a time.
- \( p \) is the probability of success on any given trial.
- \( q \) is the probability of failure on any given trial (\( q = 1 - p \)).
This is a fundamental tool in statistics that helps evaluate the likelihood of varied outcomes where there are distinct 'success' or 'failure' results.
In our exercise for part (a), the binomial probability formula was applied to calculate the probability that 19 out of 20 cars would not develop any major faults within the first three years. Such problems are common in quality control processes, reliability testing, and predictive modeling, making the binomial probability formula a versatile and powerful tool.