A company establishes a fund of 120 from which it wants to pay an amount, C, to any of its 20 employees who achieve a high performance level during the coming year. Each employee has a 2% chance of achieving a high performance level during the coming year, independent of any other employee. Determine the maximum value of C for which the probability is less than 1% that the fund will be inadequate to cover all payments for high performance.
I'm a little confused as to what to do. The correct answer is
Basically I did this:
Trying to find the integer value of x that gives the solution closest to 0.01 without exceeding it.
I came up with
This, however, is incorrect and I'm not sure why. Any help?