I jumped straight to 1 minus (1-P)^N which is right, but I fumbled explaining why for a second.
Recognize that the event of interest is 'at least one coupon used', which is the complement of 'no coupons used'. Compute the probability that no rider uses their coupon, then subtract from 1 to get the desired probability.
Pro tip: Connect the result to Lyft's business context: this probability represents the expected redemption rate, which is crucial for evaluating coupon campaign effectiveness and ROI.
Let A be the event that at least one coupon is used. Then A^c is the event that no coupons are used.
Since riders are independent, the probability that a single rider does not use their coupon is (1 - P). For N riders, the probability that none use their coupon is (1 - P)^N.
The probability that at least one coupon is used is 1 - (1 - P)^N.
Explain that this formula gives the expected redemption rate for a coupon campaign, which can inform decisions about coupon distribution and budget allocation.
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