In an effort to cut costs and improve profits, any US companies have been turning to outsourcing. In fact, according to Purchasing magazine, 54% of companies surveyed outsourced some part of their manufacturing process in the past two to three years. Suppose 555 of these companies are contacted. What is the probability percentage that 338 or more companies outsourced some part of their manufacturing process in the past two or three years? Round the percent to two decimal places.

Step-by-step explanation:

This is a binomial probability distribution because there re only 2 possible outcomes. It is either a surveyed company outsourced some part of their manufacturing process in the past two to three years. The probability of success, p would be that a randomly selected company x, outsourced some part of their manufacturing process in the past two to three years. From the information given, p = 54/100 = 0.54

Number of success, x = 338

Number of samples, n = 555

We want to determine the probability that 338 or more companies outsourced some part of their manufacturing process in the past two or three years which is expressed as

P(x ≥ 338)

From the binomial probability calculator,

P(x ≥ 338) = 0.0006

The percentage is 0.0006 × 100 = 0.06%