A random variable that the possible values can assume values which can be finite or infinite is called discrete.
The probabilities of getting a success or a failure can change from one trial to another is not a property of the binomial experiment.
Here we use Binomial distribution is used P(number of defaulters) =3% = 0.03 but q = 1-p = 1-0.03 = 0.97 n = 5 The common form of binomial distribution for computing the probability of r successes is P(r) =( nCr)q^(n-r)p^r
Thoughwe need the probability =P(r=2) = 5C2*0.97^3*0.03^2 =0.0082
60 workers and (24 workers) respectively
The expected percentage return is 2%
The variance of percentage return is 64.58%
The standard deviation of the percentage return is 2.78%
Expected percentage return of the portfolio is 8.02%