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This one took me longer than it should have.
Model the number of muffin buyers among the 5 customers as a Binomial(5, 0.3) random variable. The muffins run out if 3 or more customers buy muffins, so compute the probability that at most 2 customers buy muffins using the binomial PMF or CDF.
Pro tip: Clearly state that each customer's choice is independent and that the probability of buying a muffin is constant at 0.3. This shows you understand the assumptions behind the binomial model and avoids ambiguity.
Let X be the number of customers who buy a muffin. X follows a Binomial distribution with n = 5 trials and success probability p = 0.3.
There are 2 muffins available, so they do not run out if X ≤ 2. We need to find P(X ≤ 2).
Calculate P(X = 0), P(X = 1), and P(X = 2) using the binomial PMF: P(X = k) = C(5, k) * (0.3)^k * (0.7)^(5-k). Sum these probabilities.
Compute each term: P(X=0) = 0.7^5 = 0.16807, P(X=1) = 5 * 0.3 * 0.7^4 = 0.36015, P(X=2) = 10 * 0.3^2 * 0.7^3 = 0.3087. Sum = 0.83692.
The probability that the muffins don't run out is approximately 0.8369 or 83.69%.
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