Here are the essential concepts you must grasp in order to answer the question correctly.
Probability
Probability is a measure of the likelihood that a particular event will occur, expressed as a number between 0 and 1. In this context, it helps determine the chance that more than 100 out of 150 randomly selected employees drive their own vehicle to work, given that 83% of employees do so.
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Introduction to Probability
Binomial Distribution
The binomial distribution models the number of successes in a fixed number of independent Bernoulli trials, each with the same probability of success. Here, it applies to the scenario of selecting 150 employees, where each employee either drives their own vehicle (success) or does not (failure), allowing us to calculate the probability of observing more than 100 successes.
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Mean & Standard Deviation of Binomial Distribution
Normal Approximation
The normal approximation to the binomial distribution is used when the sample size is large, allowing for easier calculations. Since the sample size of 150 is sufficiently large, we can approximate the binomial distribution with a normal distribution to find the probability of more than 100 employees driving their own vehicle.
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Using the Normal Distribution to Approximate Binomial Probabilities