Concept:
This problem is a classical application of Poisson approximation to the Binomial distribution, which is used when:
• The number of trials \(n\) is very large,
• The probability of success \(p\) is very small,
• The product \(np = \lambda\) is finite and moderate.
Instead of directly computing binomial probabilities (which would involve very large factorials and cumbersome calculations), we simplify the problem using the Poisson distribution:
\[
P(X = k) = \frac{e^{-\lambda} \lambda^k}{k!}
\]
This significantly reduces computational complexity while giving a very accurate approximation.
Step 1: Carefully identify all given quantities.
We are given:
\[
n = 2000 \quad \text{(number of individuals)}
\]
\[
p = 0.001 \quad \text{(probability of bad reaction)}
\]
Now compute:
\[
\lambda = np = 2000 \times 0.001 = 2
\]
Thus, the corresponding Poisson distribution has parameter:
\[
\lambda = 2
\]
Step 2: Clearly interpret the requirement.
We need to find:
\[
P(X > 2)
\]
This means the probability that more than 2 individuals out of 2000 experience a bad reaction.
Step 3: Use complement rule to simplify the problem.
Direct computation of \(P(X > 2)\) would require summing infinite terms. Instead, we use:
\[
P(X > 2) = 1 - P(X \leq 2)
\]
This converts the problem into computing:
\[
P(X \leq 2) = P(0) + P(1) + P(2)
\]
Step 4: Compute each probability term in detail.
For \(X = 0\):
\[
P(0) = \frac{e^{-2} \cdot 2^0}{0!}
\]
Since \(2^0 = 1\) and \(0! = 1\), we get:
\[
P(0) = e^{-2}
\]
For \(X = 1\):
\[
P(1) = \frac{e^{-2} \cdot 2^1}{1!}
\]
\[
P(1) = \frac{e^{-2} \cdot 2}{1} = 2e^{-2}
\]
For \(X = 2\):
\[
P(2) = \frac{e^{-2} \cdot 2^2}{2!}
\]
\[
P(2) = \frac{e^{-2} \cdot 4}{2} = 2e^{-2}
\]
Step 5: Add all probabilities carefully.
\[
P(X \leq 2) = e^{-2} + 2e^{-2} + 2e^{-2}
\]
Factor out \(e^{-2}\):
\[
P(X \leq 2) = e^{-2}(1 + 2 + 2)
\]
\[
P(X \leq 2) = 5e^{-2}
\]
Step 6: Apply complement to get final result.
\[
P(X > 2) = 1 - 5e^{-2}
\]
\[
P(X > 2) = 1 - \frac{5}{e^2}
\]
Final Answer:
\[
\boxed{1 - \frac{5}{e^2}}
\]