Probability and Honesty? Based on the sample described in the preceding exercise, assume that when someone is randomly selected, there is a 0.6 probability that the selected person believes that honesty is always the best policy. a. If four people are randomly selected, find the probability that they all believe that honesty is always the best policy. b. If someone is randomly selected, what is the probability that he or she does ?not believe that honesty is always the best policy?

Solution 8CRE Step1: From the above problem we have there is a 0.6 probability that the selected person believes that honesty is always the best policy. Step2: Our aim is to find a).If four people are randomly selected, find the probability that they all believe that honesty is always the best policy. b). If someone is randomly selected, what is the probability that he or she does not believe that honesty is always the best policy Step3: a). We know that a person has 0.6 probability that the selected person believes that honesty is always the best policy. Now, consider four persons the probability becomes (0.6)(0.6)(0.6)(0.6) = 0.129 b).If someone is selected randomly, the probability that he/she does not believe that honesty is the best policy can be calculated 1 - (0.6) = 0.4