Economist Arthur Laffer suggests that beyond a certain point, high tax rates depress the economy so much that they actually reduce tax revenues. He proposed tax reductions as a means of stimulating...

Economist Arthur Laffer suggests that beyond a certain point, high tax rates depress the economy so much that they actually reduce tax revenues. He proposed tax reductions as a means of stimulating the economy and, as a result, increase tax revenues. In the mid 1990’s Time magazine reported that 30% of the US Congress supported a tax cut as a means of stimulating the economy and increasing tax revenues. Suppose at that time 5 members of congress were randomly selected for an interview and asked whether they supported a tax cut to stimulate the economy.

1.2) Find the probability that at least three of the five members of congress who were interviewed were in favour of a tax cut (rounded off to four decimals).