Thirty percent of the CFA candidates have a degree in economics. A random sample of three CFA candidates is selected. What is the probability that none of them has a degree in economics?
A) 0.027
B) 0.300
C) 0.343
D) 0.900

Question

Quizplus · Accepted Answer

The probability that a randomly selected CFA candidate does not have a degree in economics is 1 - 0.30 = 0.70. Since the selection of each candidate is independent, the probability that none of the three candidates has a degree in economics is $0.70 \times 0.70 \times 0.70 = 0.343$.

Thirty Percent of the CFA Candidates Have a Degree in Economics