
Edita M. answered 07/04/20
major in Statistics, minor in finance
P= 0.7 Q= 0.3
There are two outcomes, grow or not grow, so you recognize it is binomial.
We follow the formula for this
Use combination number, not permutation number, because the order doesn't matter. Combination number is N! / [(N-R)! R!]
10 = N, 2= R
Then we multiply this by .7^8 * .3^2
as .3 is chance that exactly those 2 don't grow, so we raise it to 2. While the rest, 8, still have a probability of .7 of growing.
Hope this helps!
Final answer should be .233