Solution: The given problem is a binomial distribution.
The probability that a team member receives a scholarship is [tex]\frac{8}{12} = 0.67[/tex]
Therefore, the given problem follows binomial with n = 5 and p = 0.6667
Now the probability that 4 of 5 players selected are on scholarship is:
[tex]P(x=4) = \binom{5}{4} \times 0.6667^{4} (1-0.6667)^{5-4}[/tex]
[tex]=5 \times 0.1976 \times 0.3333[/tex]
[tex]=0.329[/tex]
Therefore, the probability that 4 of 5 players selected are on scholarship is 0.329