Economics and Finance
Many Americans use savings bonds to supplement retirement funds or to pay for qualified higher-education expenses. The U.S. Treasury even sells savings bonds online. Approximately one in every six Americans owns savings bonds.48 Suppose four Americans are randomly selected.
a. What is the probability that all own savings bonds?
b. What is the probability that none of the four owns savings bonds?
c. What is the probability that exactly two of the four own savings bonds?