
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 = 1p = 10.03 = 0.97 n = 5 The common form of binomial distribution for computing the probability of r successes is P(r) =( nCr)q^(nr)p^r
Thoughwe need the probability =P(r=2) = 5C2*0.97^3*0.03^2 =0.0082

60 workers and (24 workers) respectively

Probability distribution

The expected percentage return is 2%

The variance of percentage return is 64.58%

The standard deviation of the percentage return is 2.78%

P(>5)=0.0499

Expected percentage return of the portfolio is 8.02%