Company been operating for 73 days. Probability customers exceeding credit limit is 0.06. One day, 23 customers ordered. Probability no customers exceed limit?

Question

Binomial distribution

Answer 1

If the probability that a customer exceeded the credit limit is 0.06, then the probability that the customer did not exceed the credit limit is 0.94 (1-0.06)

 

We want the probability that none of the 23 customers exceeded the credit limit.  

(.94)²³ = .241