Exhibit 5-12.According to a Department of Labor report,the city of Detroit had a 20% unemployment rate in May of 2011 (Bureau of Labor Statistics,May,2011).Eight working-age residents were chosen at random. Refer to Exhibit 5-12.What is the probability that exactly four residents were unemployed?
A)0.0013
B)0.0091
C)0.0459
D)0.1468

Question

Quizplus · Accepted Answer

This is a binomial probability problem with n = 8 trials (8 working-age residents chosen at random) and p = 0.20 probability of success (unemployment). To find the probability of exactly four residents being unemployed, we use the binomial probability formula: P(X = 4) = (8 choose 4) * (0.20)^4 * (0.80)^4 = 0.0459. Therefore, the correct answer is C.