The probability that a given computer chip will fail is 0.02. find the probability that of 5 delivered chips, exactly 2 will fail.

Since the chip either passes or fails, this problem is one in binomial probability, with p (fail) = 0.02 and n=5.

If your calculator features probability functions such as binompdf (n, p), use it.

Mine is a TI-83 Plus.

The probability that exactly two chips will fail is

binompdf (5,0.02,2) = 0.0038. This is quite a small probability.