A New Surgical Procedure Is Said to Be Successful 90

question 87

Short Answer

A new surgical procedure is said to be successful 90% of the time. Suppose the operation is performed five times and the results are assumed to be independent of one another. Find the probabilities listed below:
Define x to be the number of successful operations. Then p = P(success) = 0.9 and n = 5. We will use the binomial formula. However, you may also use the cumulative binomial probabilities table in Appendix I of your book to calculate the necessary probabilities.
All five operations are successful.
______________
Exactly four are successful.
______________
Less than two are successful.
______________

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Definitions:

Put Options

Financial contracts that give the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Call Options

Financial derivatives that give the buyer the right, but not the obligation, to buy a stock or other financial asset at a specified price within a specific time frame.

Strike Price

The strike price is the fixed price at which the holder of an option can buy (in the case of a call) or sell (in the case of a put) the underlying security or commodity.

LEAPS

Long-Term Equity Anticipation Securities, which are options contracts with expiration dates longer than one year, providing a long-duration investment or hedging opportunity.