Two Winning Trades

This is a binomial probability with $n=5$, $p=0.4$.

Use $\left(\genfrac{}{}{0ex}{}{5}{2}\right)p^2(1-p{)}^3$.

1. 1. Identify distribution

   Number of profitable trades is $\text{Binomial}(5,0.4)$.

2. 2. Apply formula

   Compute $\left(\genfrac{}{}{0ex}{}{5}{2}\right)(0.4{)}^2(0.6{)}^3$.

   $$\left(\genfrac{}{}{0ex}{}{5}{2}\right)(0.4{)}^2(0.6{)}^3=10\times 0.16\times 0.216$$

3. 3. Evaluate

   This equals $0.3456$.

Answer: 0.3456