1. Correct. The answer is true

 

The probability of drilling a successful well is p=0.1. The probability of drilling an unsuccessful well is q = (1-p) = 0.9. Let the random variable X be the number of successful wells. You can model this phenomenon by using a binomial distribution. This distribution is defined as follows:

 

 

n! is a factorial number: n*(n-1)*(n-2). . .3*2*1, and n is the number of trials. Therefore:

 

(a)

 

P(X = 1) = 0.2916 or 29.16%

 

 

(b) P(X < 2) = P(X=0) + P(X=1) =

 

P(X < 2) = 0.6561 + 0.2916

P(X < 2) = 0.9477 or 94.77%