Diane Bruns is the mayor of a large city. Lately, she has become concerned about the possibility that large numbers of people who are drawing unemployment checks are secretly employed. Her assistants estimate that 40% of unemployment beneficiaries fall into this category, but Ms. Bruns is not convinced. She asks one of her aides to conduct a quiet investigation of 10 randomly selected unemployment beneficiaries.
a) If the mayor’s assistants are correct, what is the probability that more than 8 of the individuals investigated have jobs?
b) If the mayor’s assistants are correct, what is the probability that one or three investigated individuals have jobs?