Past records indicate that 10% of online retail orders are fraudulent. Suppose 20 online orders are placed. What is the probability that none are fraudulent

Step-by-step explanation:

Given

Represent fraudulent with p

Required

Determine the probability that none are fraudulent

First, we need to determine the proportion of those that are not fraudulent.

Represent this with q

The required probability is binomial and can be determine using the following:

In this case x = 0 (none);

So, the required probability is:

Substitute values for n, p and q

Approximated