SlideShare una empresa de Scribd logo
1 de 8
Descargar para leer sin conexión
1
McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
Discrete Probability Distributions
Chapter 6
6-2
1. Define the terms probability distribution and random
variable.
2. Distinguish between discrete and continuous probability
distributions.
3. Calculate the mean, variance, and standard deviation of a
discrete probability distribution.
4. Describe the characteristics of and compute probabilities
using the binomial probability distribution.
5. Describe the characteristics of and compute probabilities
using the hypergeometric probability distribution.
6. Describe the characteristics of and compute probabilities
using the Poisson probability distribution.
GOALS
6-33
What is a Probability Distribution?
Probability Distribution is a listing of all
the outcomes of an experiment and the
probability associated with each outcome
It can be thought of a theoretical frequency
distribution which describes how outcomes
are expected to vary
6-44
Example of a Probability Distribution
EXPERIMENT:
Toss a coin three
times. Observe the
number of heads. The
possible results are:
zero heads, one head,
two heads, and three
heads.
What is the probability
distribution for the
number of heads?
6-55
Probability Distribution of Number of
Heads Observed in 3 Tosses of a Coin
6-66
Characteristics of a Probability
Distribution
The probability of a particular outcome is
between 0 and 1 inclusive.
The outcomes are mutually exclusive events.
The list is exhaustive. The sum of the
probabilities of the various events is 1
2
6-7
Random Variables
RANDOM VARIABLE A quantity resulting from an experiment that, by chance, can assume different values.
EXAMPLES
1. The number of students in a class.
2. The number of children in a family.
3. The number of cars entering a carwash in a
hour.
4. Number of home mortgages approved by
Coastal Federal Bank last week.
DISCRETE RANDOM VARIABLE A random
variable that can assume only certain clearly
separated values. It is usually the result of
counting something.
EXAMPLES
1. The length of each song on the latest Tim McGraw
album.
2. The weight of each student in this class.
3. The temperature outside as you are reading this
book.
4. The amount of money earned by each of the more
than 750 players currently on Major League Baseball
team rosters.
CONTINUOUS RANDOM VARIABLE can assume an
infinite number of values within a given range. It is
usually the result of some type of measurement
6-88
The Mean of a Probability Distribution
Mean
The mean represents the central location of a
probability distribution.
The mean of a probability distribution is also
referred to as its expected value.
6-99
The Variance, and Standard Deviation of
a Discrete Probability Distribution
Variance and Standard Deviation
Measure the amount of spread in a distribution
The computational steps are:
1. Subtract the mean from each value, and square this
difference.
2. Multiply each squared difference by its probability.
3. Sum the resulting products to arrive at the variance.
The SD is the positive square root of the variance.
6-10
Mean, Variance, and Standard
Deviation of a Probability Distribution - Example
John Ragsdale sells new cars for
Pelican Ford. John usually
sells the largest number of
cars on Saturday. He has
developed the following
probability distribution for
the number of cars he
expects to sell on a
particular Saturday.
MEAN
VARIANCE
136.1290.12
 
STANDARD
DEVIATION
6-11
Expected Value Problem
Mr. Byrd has decided to print either 25, 40, 55, or 70
thousand programs. Which number of programs will minimize
the team’s expected losses?
Program Sold 25,000 40,000 55,000 70,000
Probability 0.10 0.30 0.45 0.15
Harry Byrd is trying to decide how many programs to print
for the team’s upcoming three-game series with the Oakland
A’s. Each program costs 25 cents to print and sells for $1.25.
Any programs unsold at the end of the series must be
discarded. Mr. Byrd has estimated the following probability
distribution for program sales:
6-12
Given: Per program cost = $0.25, Revenue
= $1.25 and Profit = 1.25–0.25 =1.00
X P(X)
25000
40000
55000
70000
0.10
0.30
0.45
0.15
P(X) = 1.00
Probability Distribution Table
Expected Value Problem
3
6-13
Conditional Loss Table
Demand Possible Stock Options
25000 40000 55000 70000
25000
40000
55000
70000
$0
15000
30000
45000
$3750
0
15000
30000
$7500
3750
0
15000
$11250
7500
3750
0
Expected Value Problem
6-14
Expected loss table for stocking 25,000 programs
Demand Condition Loss P(X) Expected Loss
25000
40000
55000
70000
$3750
0
15000
30000
0.10
0.30
0.45
0.15
$375
0
6,750
4,500
Total= $11,625
Expected loss table for stocking 40,000 programs
Demand Condition Loss P(X) Expected Loss
25000
40000
55000
70000
$0
15,000
30,000
45,000
0.10
0.30
0.45
0.15
$0
4,500
13,500
6,750
Total= $24,750
Expected Value Problem
6-15
Expected loss table for stocking 55000 programs
Demand Condition Loss P(X) Expected Loss
25000
40000
55000
70000
$7500
3750
0
15000
0.10
0.30
0.45
0.15
$ 750
1,125
0
2,250
Total= $ 4,125
Expected loss table for stocking 70000 programs
Demand Condition Loss P(X) Expected Loss
25000
40000
55000
70000
$11250
7500
3750
0
0.10
0.30
0.45
0.15
1,125
2,250
1,687.5
0
Total = $5,062.5
Print55,000asthe
lossisminimum
Expected Value Problem
6-1616
Binomial Probability Distribution
The Binominal Probability Distribution is
a discrete probability distribution in which
each trial or observation can assume only
one of two states.
Also called Bernoulli Process
6-1717
Binomial Probability Distribution
Characteristics
1. There are only two possible outcomes on a
particular trial of an experiment.
2. The probability of outcomes of trials remain
fixed over time.
3. Each trial is independent of any other trial.
4. The outcomes are mutually exclusive.
5. The random variable is the result of counts.
6-1818
Binomial Probability Formula
4
6-1919
Binomial Probability– Example:1
There are five flights daily from Pittsburgh via US
Airways into the Bradford, Pennsylvania, Regional
Airport. Suppose the probability that any flight
arrives late is 0.20.
(a) What is the probability that NONE of the flights
are late today?
(b) What is the probability that ONE of the flights are
late today?
3277.0)3277)(.1)(1(
)20.0-1()20.0(
)-1()()0(
0-50
05
-



C
CP xnx
xn 
4096.0=)4096)(.20.0)(5(=
)20.0–1()20.0(C=
)π–1()π(C=)1(P
1–51
15
x–nx
xn
6-2020
For the example regarding the
number of late flights, recall
that  =.20 and n = 5.
What is the average number
of late flights?
What is the variance of the
number of late flights?
Binomial Distribution – Mean and
Variance: Example
6-2121
Binomial Distribution – Mean and
Variance: Another Solution
6-22
Binomial Distribution - Example
EXAMPLE
Five percent of the worm gears
produced by an automatic, high-
speed Carter-Bell milling machine
are defective.
What is the probability that out of six
gears selected at random none will
be defective? Exactly one? Exactly
two? Exactly three? Exactly four?
Exactly five? Exactly six out of six?
Binomial – Shapes for Varying  (n constant)
Binomial – Shapes for Varying n ( constant)
6-23
Harry Ohme is in charge of the electronics section of a
large department store. He has noticed that the probability
that a customer who is just browsing will buy something is
0.3. Suppose that 15 customers browse in the electronics
section each hour.
(a) What is the probability that at least one browsing
customer will buy something during a specified hour?
(b) What is the probability that at least four browsing
customers will buy something during a specified hour?
(c) What is the probability that no browsing customers will
buy anything during a specified hour?
(d) What is the probability that no more than four browsing
customers will buy something during a specified hour?
Binomial Probability (Levin and Rubin)
6-24
9953.0=)30.0–1()30.0(C-1=
)π–1()π(C=)1x(P)a(
0–510
015
x–nx
xn
≥
7032.0=
]1700.0+0916.0+0.0305+[0.0047–1
])30.–1()30(.C+)30.–1()30(.C+
)30.–1()30(.C+)30.–1()30(.C-[1=
P(3)]+P(2)+P(1)+[P(0)-1=
)π–1()π(C=)4x(P)b(
3–513
315
2–512
215
1–511
115
0–510
015
x–nx
xn≥
Binomial Probability (Levin and Rubin)
5
6-25
0047.0=)30.0–1()30.0(C=
)π–1()π(C=)0=x(P)c(
0–510
015
x–nx
xn
5154.0=
]2186.0+1700.0+0916.0+0.0305+[0.0047=
])30.–1()30(.C+
)30.–1()30(.C+)30.–1()30(.C+
)30.–1()30(.C+)30.–1()30(.C[=
P(4)]+P(3)+P(2)+P(1)+[P(0)=)4x(P)d(
4–514
415
3–513
315
2–512
215
1–511
115
0–510
015
≤
Binomial Probability (Levin and Rubin)
6-26
The latest nationwide political poll indicates that for
Americans who are randomly selected, the probability
that they are conservative is 0.55, the probability that
they are liberal is 0.30, and the probability that they are
middle-of-the-road is 0.15. Assuming that these
probabilities are accurate, answer the following the
questions pertaining to a randomly chosen group of 10
Americans.
(a) What is the probability that 4 are liberal ?
(b) What is the probability that none are conservative ?
(c) What is the probability that 2 are middle-of-the-road ?
(d) What is the probability that 8 are liberal ?
Binomial Probability (Levin and Rubin)
6-27
0003.0=)3.–1()3(.C=)π–1()π(C=)4(P)a( 4–014
410
x–nx
xn
2001.0=)55.–1()55(.C=)π–1()π(C=)10(P)b( 0–014
010
x–nx
xn
2759.0=)51.–1()15(.C=)π–1()π(C=)2(P)c( 2–014
210
x–nx
xn
00160.0=
00001.0+00014.0+00145.0=
)3.–1()3(.C
+)3.–1()3(.C+)3.–1()3(.C=
)10(P+)9(P+)8(P=)π–1()π(C=)8≥x(P)d(
01–0110
10
9–019
9
8–018
810
x–nx
xn
Binomial Probability (Levin and Rubin)
6-28
Problems Related to Meeting Conditions
of Binomial Distribution
In real life problems, the probability of
success or failure does not remain fixed
all the time
The trials may not be statistically
independent of each other
6-2929
Binomial – Shapes for Varying 
(n constant)
6-3030
Binomial – Shapes for Varying n
( constant)
6
6-3131
Cumulative Binomial Probability
Distribution
A study in June 2003 by the Illinois Department of
Transportation concluded that 76.2% of front seat
occupants used seat belts. A sample of 12 vehicles is
selected. What is the probability the front seat
occupants in at least 7 of the 12 vehicles are wearing
seat belts?
6-3232
Poisson Probability Distribution
The Poisson probability distribution
describes the number of times some event
occurs during a specified interval. The interval
may be time, distance, area, or volume.
Assumptions of the Poisson Distribution
(1) The random variable is the number of times some
event occurs during a defined interval
(2) The probability is proportional to the length of the
interval.
(3) The intervals don’t overlap and are independent.
6-3333
Poisson Probability Distribution
The Poisson distribution can be described
mathematically using the formula:
6-3434
Mean and Variance of Poisson
Probability Distribution
The mean number of successes  can
be determined in binomial situations by
n, where n is the number of trials and
 the probability of a success.
The variance of the Poisson distribution
is also equal to n .
6-3535
Assume baggage is rarely lost by Northwest
Airlines. Suppose a random sample of 1,000
flights shows a total of 300 bags were lost. Thus,
the arithmetic mean number of lost bags per flight
is 0.3 (300/1,000). If the number of lost bags per
flight follows a Poisson distribution with u = 0.3,
find the probability of not losing any bags.
Poisson Probability Distribution–
Example:1
6-3636
Poisson Probability Distribution- Table
Assume baggage is rarely lost by Northwest Airlines. Suppose a
random sample of 1,000 flights shows a total of 300 bags were lost.
Thus, the arithmetic mean number of lost bags per flight is 0.3
(300/1,000). If the number of lost bags per flight follows a Poisson
distribution with mean = 0.3, find the probability of not losing any bags.
7
6-37
More About the Poisson Probability
Distribution
•The Poisson probability distribution is always positively skewed and the
random variable has no specific upper limit.
•The Poisson distribution for the lost bags illustration, where µ=0.3, is highly
skewed.
•As µ becomes larger, the Poisson distribution becomes more symmetrical.
6-38
1465.=
!2
e4
=
!x
eµ
=)x(P
4–2u–x
The Lab Aid specializes in
caring for minor injuries,
colds, and flu. For the
evening hours of 6-10 PM
the mean number of arrivals
is 4.0 per hour. What is the
probability of 2 arrivals in an
hour?
Poisson Probability Distribution–
Example:2
6-39
The US Bureau of Printing and Engraving (BPE)
is responsible for printing this country’s paper
money. The BPE has an impressively small
frequency of printing errors; only 0.5 percent of
all bills are too flawed for circulation. What is the
probability that out of a batch of 1,000 bills
(a) None are too flawed for circulation?
(b) Ten are flawed for circulation?
(c) Fifteen are flawed for circulation?
Poisson Probability Distribution–
Example:3
6-40
Poisson Probability Distribution–
Example:3
01813.0=
!10
e×)5(
=)10(P
5–10
00016.0=
!15
e×)5(
=)15(P
5–15
Given us: n = 1000, π = 0.005
Thus: µ =nπ = (1000)(0.005) = 5
00674.0=
!0
e5
=
!x
eµ
=)0(P
5–0u–x
6-41
Concert Pianist Donna Prima has become quite
upset at the number of coughs occurring in the
audience just before she begins to play. On her
latest tour, Donna estimates that on average eight
coughs occur just before the start of her
performance. Ms. Prima has sworn to her
conductor that if she hears more than five coughs
at tonight’s performance, she will refuse to play.
What is the probability that she will not play
tonight?
Poisson Probability Distribution–
Example:4
6-42
Poisson Probability Distribution–
Example:4
8088.0=0.1912–1=
0.0916]+0.0573+0.0286+
0.0107+0.0027+[0.0003–1=
]
!5
e×)8(
+
!4
e×)8(
+
!3
e×)8(
+
!2
e×)8(
+
!1
e×)8(
+
!0
e×)8(
[–1=
8–58–48–3
8–28–18–0
Given us: µ = 8
)]5(P+)4(P+)3(P+)2(P+)1(P+)0(P[–1
8
6-43
Poisson Distribution as an
Approximation of Binomial Distribution
The Poisson Distribution is a good
approximation of the Binomial Distribution
when n ≥ 20 and π ≤ 0.05.
6-44
A hospital has 20 kidney dialysis machines and that the
chance of any of them malfunctioning during any day is
0.02. What is the probability that exactly three
machines will be out of service on the dame day?
!x
e×)πn(
=)x(P
)πn(–x
007.0=
6
e×)4.0(
=
!3
e×)02.0×20(
=)3(P
)4.0(–3
)02.0×20(–3
006.0=
).020-1()02.0(C=)3(P
)π-1()π(C=)x(P
3-023
320
x-nx
xn
Approximation of Binomial Distribution:
An Example
Binomial DistributionPoisson Distribution
6-45
Hypergeometric Probability Distribution
1. An outcome on each trial of an experiment is
classified into one of two mutually exclusive
categories—a success or a failure.
2. The probability of success and failure changes from
trial to trial.
3. The trials are not independent, meaning that the
outcome of one trial affects the outcome of any
other trial.
Note: Use hypergeometric distribution if experiment is
binomial, but sampling is without replacement from a
finite population where n/N is more than 0.05
Formula:
EXAMPLE
PlayTime Toys, Inc., employs 50 people in the
Assembly Department. Forty of the employees
belong to a union and ten do not. Five employees
are selected at random to form a committee to
meet with management regarding shift starting
times.
What is the probability that four of the five selected
for the committee belong to a union?
Here’s what’s given:
N = 50 (number of employees)
S = 40 (number of union employees)
x = 4 (number of union employees selected)
n = 5 (number of employees selected)
6-4646
End of Chapter 6

Más contenido relacionado

La actualidad más candente

Cumulative frequency distribution
Cumulative frequency distributionCumulative frequency distribution
Cumulative frequency distributionMahrukhShehzadi1
 
Normal Distribution
Normal DistributionNormal Distribution
Normal DistributionCIToolkit
 
Normal probability distribution
Normal probability distributionNormal probability distribution
Normal probability distributionNadeem Uddin
 
P value in z statistic
P value in z statisticP value in z statistic
P value in z statisticNadeem Uddin
 
Discrete Random Variables And Probability Distributions
Discrete Random Variables And Probability DistributionsDiscrete Random Variables And Probability Distributions
Discrete Random Variables And Probability Distributionsmathscontent
 
Chap14 multiple regression model building
Chap14 multiple regression model buildingChap14 multiple regression model building
Chap14 multiple regression model buildingUni Azza Aunillah
 
Discrete Probability Distributions
Discrete Probability DistributionsDiscrete Probability Distributions
Discrete Probability Distributionsmandalina landy
 
Binomial probability distribution
Binomial probability distributionBinomial probability distribution
Binomial probability distributionNadeem Uddin
 
Probability Distributions for Continuous Variables
Probability Distributions for Continuous VariablesProbability Distributions for Continuous Variables
Probability Distributions for Continuous Variablesgetyourcheaton
 
Sampling and Sampling Distributions
Sampling and Sampling DistributionsSampling and Sampling Distributions
Sampling and Sampling DistributionsJessa Albit
 
Business statistics solved numericals
Business statistics solved numericalsBusiness statistics solved numericals
Business statistics solved numericalsAnurag Srivastava
 
Discrete distributions: Binomial, Poisson & Hypergeometric distributions
Discrete distributions:  Binomial, Poisson & Hypergeometric distributionsDiscrete distributions:  Binomial, Poisson & Hypergeometric distributions
Discrete distributions: Binomial, Poisson & Hypergeometric distributionsScholarsPoint1
 
Basic concepts of scale of measurement
Basic concepts of scale of measurementBasic concepts of scale of measurement
Basic concepts of scale of measurementShreyas Patel
 

La actualidad más candente (20)

Cumulative frequency distribution
Cumulative frequency distributionCumulative frequency distribution
Cumulative frequency distribution
 
Normal Distribution
Normal DistributionNormal Distribution
Normal Distribution
 
Binomial probability distributions
Binomial probability distributions  Binomial probability distributions
Binomial probability distributions
 
statistics
statisticsstatistics
statistics
 
Normal probability distribution
Normal probability distributionNormal probability distribution
Normal probability distribution
 
Discrete probability distributions
Discrete probability distributionsDiscrete probability distributions
Discrete probability distributions
 
P value in z statistic
P value in z statisticP value in z statistic
P value in z statistic
 
Discrete Random Variables And Probability Distributions
Discrete Random Variables And Probability DistributionsDiscrete Random Variables And Probability Distributions
Discrete Random Variables And Probability Distributions
 
Chap14 multiple regression model building
Chap14 multiple regression model buildingChap14 multiple regression model building
Chap14 multiple regression model building
 
STATISTIC ESTIMATION
STATISTIC ESTIMATIONSTATISTIC ESTIMATION
STATISTIC ESTIMATION
 
Binomial distribution
Binomial distributionBinomial distribution
Binomial distribution
 
Discrete Probability Distributions
Discrete Probability DistributionsDiscrete Probability Distributions
Discrete Probability Distributions
 
Binomial probability distribution
Binomial probability distributionBinomial probability distribution
Binomial probability distribution
 
Confidence Intervals
Confidence IntervalsConfidence Intervals
Confidence Intervals
 
Probability Distributions for Continuous Variables
Probability Distributions for Continuous VariablesProbability Distributions for Continuous Variables
Probability Distributions for Continuous Variables
 
Sampling and Sampling Distributions
Sampling and Sampling DistributionsSampling and Sampling Distributions
Sampling and Sampling Distributions
 
Business statistics solved numericals
Business statistics solved numericalsBusiness statistics solved numericals
Business statistics solved numericals
 
Discrete distributions: Binomial, Poisson & Hypergeometric distributions
Discrete distributions:  Binomial, Poisson & Hypergeometric distributionsDiscrete distributions:  Binomial, Poisson & Hypergeometric distributions
Discrete distributions: Binomial, Poisson & Hypergeometric distributions
 
Basic concepts of scale of measurement
Basic concepts of scale of measurementBasic concepts of scale of measurement
Basic concepts of scale of measurement
 
Histogram
HistogramHistogram
Histogram
 

Destacado

Mean of a discrete random variable.ppt
Mean of a discrete random variable.pptMean of a discrete random variable.ppt
Mean of a discrete random variable.pptccooking
 
Discrete random variable.
Discrete random variable.Discrete random variable.
Discrete random variable.Shakeel Nouman
 
Variance and standard deviation of a discrete random variable
Variance and standard deviation of a discrete random variableVariance and standard deviation of a discrete random variable
Variance and standard deviation of a discrete random variableccooking
 
Discrete Probability Distributions
Discrete  Probability DistributionsDiscrete  Probability Distributions
Discrete Probability DistributionsE-tan
 
Lecture 5 limit laws
Lecture 5   limit lawsLecture 5   limit laws
Lecture 5 limit lawsnjit-ronbrown
 
Triangles and its properties
Triangles and its properties Triangles and its properties
Triangles and its properties divyanshi jain
 
Kinds of triangles
Kinds of trianglesKinds of triangles
Kinds of triangleswarlybaja
 
Triangles
Triangles Triangles
Triangles batoulsh
 
Lesson 2: Limits and Limit Laws
Lesson 2: Limits and Limit LawsLesson 2: Limits and Limit Laws
Lesson 2: Limits and Limit LawsMatthew Leingang
 
Types Of Triangles
Types Of TrianglesTypes Of Triangles
Types Of Trianglesstarbuck
 

Destacado (16)

Mean of a discrete random variable.ppt
Mean of a discrete random variable.pptMean of a discrete random variable.ppt
Mean of a discrete random variable.ppt
 
Theorems on limits
Theorems on limitsTheorems on limits
Theorems on limits
 
Discrete random variable.
Discrete random variable.Discrete random variable.
Discrete random variable.
 
Variance and standard deviation of a discrete random variable
Variance and standard deviation of a discrete random variableVariance and standard deviation of a discrete random variable
Variance and standard deviation of a discrete random variable
 
Discrete Probability Distributions
Discrete  Probability DistributionsDiscrete  Probability Distributions
Discrete Probability Distributions
 
IX polynomial
IX polynomialIX polynomial
IX polynomial
 
Lecture 5 limit laws
Lecture 5   limit lawsLecture 5   limit laws
Lecture 5 limit laws
 
Triangles and its properties
Triangles and its properties Triangles and its properties
Triangles and its properties
 
Kinds of triangles
Kinds of trianglesKinds of triangles
Kinds of triangles
 
Triangles
TrianglesTriangles
Triangles
 
Triangles
Triangles Triangles
Triangles
 
Lesson 2: Limits and Limit Laws
Lesson 2: Limits and Limit LawsLesson 2: Limits and Limit Laws
Lesson 2: Limits and Limit Laws
 
Triangles
TrianglesTriangles
Triangles
 
Types Of Triangles
Types Of TrianglesTypes Of Triangles
Types Of Triangles
 
Probability concept and Probability distribution
Probability concept and Probability distributionProbability concept and Probability distribution
Probability concept and Probability distribution
 
Random variables
Random variablesRandom variables
Random variables
 

Similar a Discrete Probability Distributions.

Math 533 ( applied managerial statistics ) final exam answers
Math 533 ( applied managerial statistics ) final exam answersMath 533 ( applied managerial statistics ) final exam answers
Math 533 ( applied managerial statistics ) final exam answersNathanielZaleski
 
Math 533 ( applied managerial statistics ) final exam answers
Math 533 ( applied managerial statistics ) final exam answersMath 533 ( applied managerial statistics ) final exam answers
Math 533 ( applied managerial statistics ) final exam answersDennisHine
 
Math 533 ( applied managerial statistics ) final exam answers
Math 533 ( applied managerial statistics ) final exam answersMath 533 ( applied managerial statistics ) final exam answers
Math 533 ( applied managerial statistics ) final exam answersBrittneDean
 
Math 533 ( applied managerial statistics ) entire course
Math 533 ( applied managerial statistics ) entire courseMath 533 ( applied managerial statistics ) entire course
Math 533 ( applied managerial statistics ) entire coursePatrickrasacs
 
Math 533 ( applied managerial statistics ) entire course
Math 533 ( applied managerial statistics ) entire courseMath 533 ( applied managerial statistics ) entire course
Math 533 ( applied managerial statistics ) entire courseBrittneDean
 
Math 533 ( applied managerial statistics ) entire course
Math 533 ( applied managerial statistics ) entire courseMath 533 ( applied managerial statistics ) entire course
Math 533 ( applied managerial statistics ) entire courseNathanielZaleski
 
Math 533 ( applied managerial statistics ) entire course
Math 533 ( applied managerial statistics ) entire courseMath 533 ( applied managerial statistics ) entire course
Math 533 ( applied managerial statistics ) entire courseDennisHine
 
Mean and Variance of Discrete Random Variable.pptx
Mean and Variance of Discrete Random Variable.pptxMean and Variance of Discrete Random Variable.pptx
Mean and Variance of Discrete Random Variable.pptxMarkJayAquillo
 
Math 533 ( applied managerial statistics ) final exam answers
Math 533 ( applied managerial statistics ) final exam answersMath 533 ( applied managerial statistics ) final exam answers
Math 533 ( applied managerial statistics ) final exam answersPatrickrasacs
 
Statistics assignment 5
Statistics assignment 5Statistics assignment 5
Statistics assignment 5Ishaq Ahmed
 
1 3 my statlab module one problem set complete solutions correct answers key
1 3 my statlab module one problem set complete solutions correct answers key1 3 my statlab module one problem set complete solutions correct answers key
1 3 my statlab module one problem set complete solutions correct answers keySong Love
 
Final examexamplesapr2013
Final examexamplesapr2013Final examexamplesapr2013
Final examexamplesapr2013Brent Heard
 
Applied Business Statistics ,ken black , ch 5
Applied Business Statistics ,ken black , ch 5Applied Business Statistics ,ken black , ch 5
Applied Business Statistics ,ken black , ch 5AbdelmonsifFadl
 
Risk and return practice problem - fm
Risk and return   practice problem - fmRisk and return   practice problem - fm
Risk and return practice problem - fmHasmawati Hassan
 
Three problems of probability
Three problems of probabilityThree problems of probability
Three problems of probabilityazmatmengal
 
PAGE 1 Chapter 5 Normal Probability Distributions .docx
PAGE 1 Chapter 5 Normal Probability Distributions  .docxPAGE 1 Chapter 5 Normal Probability Distributions  .docx
PAGE 1 Chapter 5 Normal Probability Distributions .docxgerardkortney
 
Engine90 crawford-decision-making (1)
Engine90 crawford-decision-making (1)Engine90 crawford-decision-making (1)
Engine90 crawford-decision-making (1)Divyansh Dokania
 

Similar a Discrete Probability Distributions. (20)

Chapter 06
Chapter 06 Chapter 06
Chapter 06
 
Math 533 ( applied managerial statistics ) final exam answers
Math 533 ( applied managerial statistics ) final exam answersMath 533 ( applied managerial statistics ) final exam answers
Math 533 ( applied managerial statistics ) final exam answers
 
Math 533 ( applied managerial statistics ) final exam answers
Math 533 ( applied managerial statistics ) final exam answersMath 533 ( applied managerial statistics ) final exam answers
Math 533 ( applied managerial statistics ) final exam answers
 
Math 533 ( applied managerial statistics ) final exam answers
Math 533 ( applied managerial statistics ) final exam answersMath 533 ( applied managerial statistics ) final exam answers
Math 533 ( applied managerial statistics ) final exam answers
 
Math 533 ( applied managerial statistics ) entire course
Math 533 ( applied managerial statistics ) entire courseMath 533 ( applied managerial statistics ) entire course
Math 533 ( applied managerial statistics ) entire course
 
Math 533 ( applied managerial statistics ) entire course
Math 533 ( applied managerial statistics ) entire courseMath 533 ( applied managerial statistics ) entire course
Math 533 ( applied managerial statistics ) entire course
 
Math 533 ( applied managerial statistics ) entire course
Math 533 ( applied managerial statistics ) entire courseMath 533 ( applied managerial statistics ) entire course
Math 533 ( applied managerial statistics ) entire course
 
Math 533 ( applied managerial statistics ) entire course
Math 533 ( applied managerial statistics ) entire courseMath 533 ( applied managerial statistics ) entire course
Math 533 ( applied managerial statistics ) entire course
 
Mean and Variance of Discrete Random Variable.pptx
Mean and Variance of Discrete Random Variable.pptxMean and Variance of Discrete Random Variable.pptx
Mean and Variance of Discrete Random Variable.pptx
 
Math 533 ( applied managerial statistics ) final exam answers
Math 533 ( applied managerial statistics ) final exam answersMath 533 ( applied managerial statistics ) final exam answers
Math 533 ( applied managerial statistics ) final exam answers
 
Chapter 06.ppt
Chapter 06.pptChapter 06.ppt
Chapter 06.ppt
 
Statistics assignment 5
Statistics assignment 5Statistics assignment 5
Statistics assignment 5
 
1 3 my statlab module one problem set complete solutions correct answers key
1 3 my statlab module one problem set complete solutions correct answers key1 3 my statlab module one problem set complete solutions correct answers key
1 3 my statlab module one problem set complete solutions correct answers key
 
Final examexamplesapr2013
Final examexamplesapr2013Final examexamplesapr2013
Final examexamplesapr2013
 
Applied Business Statistics ,ken black , ch 5
Applied Business Statistics ,ken black , ch 5Applied Business Statistics ,ken black , ch 5
Applied Business Statistics ,ken black , ch 5
 
Risk and return practice problem - fm
Risk and return   practice problem - fmRisk and return   practice problem - fm
Risk and return practice problem - fm
 
Three problems of probability
Three problems of probabilityThree problems of probability
Three problems of probability
 
Statistics Assignment Help
Statistics Assignment HelpStatistics Assignment Help
Statistics Assignment Help
 
PAGE 1 Chapter 5 Normal Probability Distributions .docx
PAGE 1 Chapter 5 Normal Probability Distributions  .docxPAGE 1 Chapter 5 Normal Probability Distributions  .docx
PAGE 1 Chapter 5 Normal Probability Distributions .docx
 
Engine90 crawford-decision-making (1)
Engine90 crawford-decision-making (1)Engine90 crawford-decision-making (1)
Engine90 crawford-decision-making (1)
 

Más de ConflagratioNal Jahid

Building Customer Loyalty through Quality
Building Customer Loyalty through Quality Building Customer Loyalty through Quality
Building Customer Loyalty through Quality ConflagratioNal Jahid
 
Pricing Considerations, Approaches, and Strategy
Pricing Considerations, Approaches, and StrategyPricing Considerations, Approaches, and Strategy
Pricing Considerations, Approaches, and StrategyConflagratioNal Jahid
 
Frequency Tables, Frequency Distributions, and Graphic Presentation
Frequency Tables, Frequency Distributions, and Graphic PresentationFrequency Tables, Frequency Distributions, and Graphic Presentation
Frequency Tables, Frequency Distributions, and Graphic PresentationConflagratioNal Jahid
 
The Role of Marketing in Strategic Planning
The Role of Marketing in Strategic Planning The Role of Marketing in Strategic Planning
The Role of Marketing in Strategic Planning ConflagratioNal Jahid
 
Service Characteristics of Hospitality and Tourism Marketing
Service Characteristics of Hospitality and Tourism Marketing Service Characteristics of Hospitality and Tourism Marketing
Service Characteristics of Hospitality and Tourism Marketing ConflagratioNal Jahid
 
POPULATION MIGRATION RURAL TO URBAN IN BANGLADESH
POPULATION MIGRATION RURAL TO URBAN IN BANGLADESHPOPULATION MIGRATION RURAL TO URBAN IN BANGLADESH
POPULATION MIGRATION RURAL TO URBAN IN BANGLADESHConflagratioNal Jahid
 

Más de ConflagratioNal Jahid (9)

Building Customer Loyalty through Quality
Building Customer Loyalty through Quality Building Customer Loyalty through Quality
Building Customer Loyalty through Quality
 
Pricing Considerations, Approaches, and Strategy
Pricing Considerations, Approaches, and StrategyPricing Considerations, Approaches, and Strategy
Pricing Considerations, Approaches, and Strategy
 
Internal Marketing
Internal MarketingInternal Marketing
Internal Marketing
 
Probability Concepts
Probability ConceptsProbability Concepts
Probability Concepts
 
Describing Data: Numerical Measures
Describing Data: Numerical MeasuresDescribing Data: Numerical Measures
Describing Data: Numerical Measures
 
Frequency Tables, Frequency Distributions, and Graphic Presentation
Frequency Tables, Frequency Distributions, and Graphic PresentationFrequency Tables, Frequency Distributions, and Graphic Presentation
Frequency Tables, Frequency Distributions, and Graphic Presentation
 
The Role of Marketing in Strategic Planning
The Role of Marketing in Strategic Planning The Role of Marketing in Strategic Planning
The Role of Marketing in Strategic Planning
 
Service Characteristics of Hospitality and Tourism Marketing
Service Characteristics of Hospitality and Tourism Marketing Service Characteristics of Hospitality and Tourism Marketing
Service Characteristics of Hospitality and Tourism Marketing
 
POPULATION MIGRATION RURAL TO URBAN IN BANGLADESH
POPULATION MIGRATION RURAL TO URBAN IN BANGLADESHPOPULATION MIGRATION RURAL TO URBAN IN BANGLADESH
POPULATION MIGRATION RURAL TO URBAN IN BANGLADESH
 

Último

On National Teacher Day, meet the 2024-25 Kenan Fellows
On National Teacher Day, meet the 2024-25 Kenan FellowsOn National Teacher Day, meet the 2024-25 Kenan Fellows
On National Teacher Day, meet the 2024-25 Kenan FellowsMebane Rash
 
Micro-Scholarship, What it is, How can it help me.pdf
Micro-Scholarship, What it is, How can it help me.pdfMicro-Scholarship, What it is, How can it help me.pdf
Micro-Scholarship, What it is, How can it help me.pdfPoh-Sun Goh
 
Nutritional Needs Presentation - HLTH 104
Nutritional Needs Presentation - HLTH 104Nutritional Needs Presentation - HLTH 104
Nutritional Needs Presentation - HLTH 104misteraugie
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdfQucHHunhnh
 
Energy Resources. ( B. Pharmacy, 1st Year, Sem-II) Natural Resources
Energy Resources. ( B. Pharmacy, 1st Year, Sem-II) Natural ResourcesEnergy Resources. ( B. Pharmacy, 1st Year, Sem-II) Natural Resources
Energy Resources. ( B. Pharmacy, 1st Year, Sem-II) Natural ResourcesShubhangi Sonawane
 
Sociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning ExhibitSociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning Exhibitjbellavia9
 
Web & Social Media Analytics Previous Year Question Paper.pdf
Web & Social Media Analytics Previous Year Question Paper.pdfWeb & Social Media Analytics Previous Year Question Paper.pdf
Web & Social Media Analytics Previous Year Question Paper.pdfJayanti Pande
 
Ecological Succession. ( ECOSYSTEM, B. Pharmacy, 1st Year, Sem-II, Environmen...
Ecological Succession. ( ECOSYSTEM, B. Pharmacy, 1st Year, Sem-II, Environmen...Ecological Succession. ( ECOSYSTEM, B. Pharmacy, 1st Year, Sem-II, Environmen...
Ecological Succession. ( ECOSYSTEM, B. Pharmacy, 1st Year, Sem-II, Environmen...Shubhangi Sonawane
 
This PowerPoint helps students to consider the concept of infinity.
This PowerPoint helps students to consider the concept of infinity.This PowerPoint helps students to consider the concept of infinity.
This PowerPoint helps students to consider the concept of infinity.christianmathematics
 
Python Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docxPython Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docxRamakrishna Reddy Bijjam
 
Unit-V; Pricing (Pharma Marketing Management).pptx
Unit-V; Pricing (Pharma Marketing Management).pptxUnit-V; Pricing (Pharma Marketing Management).pptx
Unit-V; Pricing (Pharma Marketing Management).pptxVishalSingh1417
 
Key note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdfKey note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdfAdmir Softic
 
Role Of Transgenic Animal In Target Validation-1.pptx
Role Of Transgenic Animal In Target Validation-1.pptxRole Of Transgenic Animal In Target Validation-1.pptx
Role Of Transgenic Animal In Target Validation-1.pptxNikitaBankoti2
 
Application orientated numerical on hev.ppt
Application orientated numerical on hev.pptApplication orientated numerical on hev.ppt
Application orientated numerical on hev.pptRamjanShidvankar
 
Seal of Good Local Governance (SGLG) 2024Final.pptx
Seal of Good Local Governance (SGLG) 2024Final.pptxSeal of Good Local Governance (SGLG) 2024Final.pptx
Seal of Good Local Governance (SGLG) 2024Final.pptxnegromaestrong
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxheathfieldcps1
 
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...Nguyen Thanh Tu Collection
 
Z Score,T Score, Percential Rank and Box Plot Graph
Z Score,T Score, Percential Rank and Box Plot GraphZ Score,T Score, Percential Rank and Box Plot Graph
Z Score,T Score, Percential Rank and Box Plot GraphThiyagu K
 
PROCESS RECORDING FORMAT.docx
PROCESS      RECORDING        FORMAT.docxPROCESS      RECORDING        FORMAT.docx
PROCESS RECORDING FORMAT.docxPoojaSen20
 

Último (20)

On National Teacher Day, meet the 2024-25 Kenan Fellows
On National Teacher Day, meet the 2024-25 Kenan FellowsOn National Teacher Day, meet the 2024-25 Kenan Fellows
On National Teacher Day, meet the 2024-25 Kenan Fellows
 
Micro-Scholarship, What it is, How can it help me.pdf
Micro-Scholarship, What it is, How can it help me.pdfMicro-Scholarship, What it is, How can it help me.pdf
Micro-Scholarship, What it is, How can it help me.pdf
 
Nutritional Needs Presentation - HLTH 104
Nutritional Needs Presentation - HLTH 104Nutritional Needs Presentation - HLTH 104
Nutritional Needs Presentation - HLTH 104
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf
 
Energy Resources. ( B. Pharmacy, 1st Year, Sem-II) Natural Resources
Energy Resources. ( B. Pharmacy, 1st Year, Sem-II) Natural ResourcesEnergy Resources. ( B. Pharmacy, 1st Year, Sem-II) Natural Resources
Energy Resources. ( B. Pharmacy, 1st Year, Sem-II) Natural Resources
 
Sociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning ExhibitSociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning Exhibit
 
Web & Social Media Analytics Previous Year Question Paper.pdf
Web & Social Media Analytics Previous Year Question Paper.pdfWeb & Social Media Analytics Previous Year Question Paper.pdf
Web & Social Media Analytics Previous Year Question Paper.pdf
 
Ecological Succession. ( ECOSYSTEM, B. Pharmacy, 1st Year, Sem-II, Environmen...
Ecological Succession. ( ECOSYSTEM, B. Pharmacy, 1st Year, Sem-II, Environmen...Ecological Succession. ( ECOSYSTEM, B. Pharmacy, 1st Year, Sem-II, Environmen...
Ecological Succession. ( ECOSYSTEM, B. Pharmacy, 1st Year, Sem-II, Environmen...
 
This PowerPoint helps students to consider the concept of infinity.
This PowerPoint helps students to consider the concept of infinity.This PowerPoint helps students to consider the concept of infinity.
This PowerPoint helps students to consider the concept of infinity.
 
Python Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docxPython Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docx
 
Unit-V; Pricing (Pharma Marketing Management).pptx
Unit-V; Pricing (Pharma Marketing Management).pptxUnit-V; Pricing (Pharma Marketing Management).pptx
Unit-V; Pricing (Pharma Marketing Management).pptx
 
Key note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdfKey note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdf
 
Role Of Transgenic Animal In Target Validation-1.pptx
Role Of Transgenic Animal In Target Validation-1.pptxRole Of Transgenic Animal In Target Validation-1.pptx
Role Of Transgenic Animal In Target Validation-1.pptx
 
Application orientated numerical on hev.ppt
Application orientated numerical on hev.pptApplication orientated numerical on hev.ppt
Application orientated numerical on hev.ppt
 
Seal of Good Local Governance (SGLG) 2024Final.pptx
Seal of Good Local Governance (SGLG) 2024Final.pptxSeal of Good Local Governance (SGLG) 2024Final.pptx
Seal of Good Local Governance (SGLG) 2024Final.pptx
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
 
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
 
Asian American Pacific Islander Month DDSD 2024.pptx
Asian American Pacific Islander Month DDSD 2024.pptxAsian American Pacific Islander Month DDSD 2024.pptx
Asian American Pacific Islander Month DDSD 2024.pptx
 
Z Score,T Score, Percential Rank and Box Plot Graph
Z Score,T Score, Percential Rank and Box Plot GraphZ Score,T Score, Percential Rank and Box Plot Graph
Z Score,T Score, Percential Rank and Box Plot Graph
 
PROCESS RECORDING FORMAT.docx
PROCESS      RECORDING        FORMAT.docxPROCESS      RECORDING        FORMAT.docx
PROCESS RECORDING FORMAT.docx
 

Discrete Probability Distributions.

  • 1. 1 McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Discrete Probability Distributions Chapter 6 6-2 1. Define the terms probability distribution and random variable. 2. Distinguish between discrete and continuous probability distributions. 3. Calculate the mean, variance, and standard deviation of a discrete probability distribution. 4. Describe the characteristics of and compute probabilities using the binomial probability distribution. 5. Describe the characteristics of and compute probabilities using the hypergeometric probability distribution. 6. Describe the characteristics of and compute probabilities using the Poisson probability distribution. GOALS 6-33 What is a Probability Distribution? Probability Distribution is a listing of all the outcomes of an experiment and the probability associated with each outcome It can be thought of a theoretical frequency distribution which describes how outcomes are expected to vary 6-44 Example of a Probability Distribution EXPERIMENT: Toss a coin three times. Observe the number of heads. The possible results are: zero heads, one head, two heads, and three heads. What is the probability distribution for the number of heads? 6-55 Probability Distribution of Number of Heads Observed in 3 Tosses of a Coin 6-66 Characteristics of a Probability Distribution The probability of a particular outcome is between 0 and 1 inclusive. The outcomes are mutually exclusive events. The list is exhaustive. The sum of the probabilities of the various events is 1
  • 2. 2 6-7 Random Variables RANDOM VARIABLE A quantity resulting from an experiment that, by chance, can assume different values. EXAMPLES 1. The number of students in a class. 2. The number of children in a family. 3. The number of cars entering a carwash in a hour. 4. Number of home mortgages approved by Coastal Federal Bank last week. DISCRETE RANDOM VARIABLE A random variable that can assume only certain clearly separated values. It is usually the result of counting something. EXAMPLES 1. The length of each song on the latest Tim McGraw album. 2. The weight of each student in this class. 3. The temperature outside as you are reading this book. 4. The amount of money earned by each of the more than 750 players currently on Major League Baseball team rosters. CONTINUOUS RANDOM VARIABLE can assume an infinite number of values within a given range. It is usually the result of some type of measurement 6-88 The Mean of a Probability Distribution Mean The mean represents the central location of a probability distribution. The mean of a probability distribution is also referred to as its expected value. 6-99 The Variance, and Standard Deviation of a Discrete Probability Distribution Variance and Standard Deviation Measure the amount of spread in a distribution The computational steps are: 1. Subtract the mean from each value, and square this difference. 2. Multiply each squared difference by its probability. 3. Sum the resulting products to arrive at the variance. The SD is the positive square root of the variance. 6-10 Mean, Variance, and Standard Deviation of a Probability Distribution - Example John Ragsdale sells new cars for Pelican Ford. John usually sells the largest number of cars on Saturday. He has developed the following probability distribution for the number of cars he expects to sell on a particular Saturday. MEAN VARIANCE 136.1290.12   STANDARD DEVIATION 6-11 Expected Value Problem Mr. Byrd has decided to print either 25, 40, 55, or 70 thousand programs. Which number of programs will minimize the team’s expected losses? Program Sold 25,000 40,000 55,000 70,000 Probability 0.10 0.30 0.45 0.15 Harry Byrd is trying to decide how many programs to print for the team’s upcoming three-game series with the Oakland A’s. Each program costs 25 cents to print and sells for $1.25. Any programs unsold at the end of the series must be discarded. Mr. Byrd has estimated the following probability distribution for program sales: 6-12 Given: Per program cost = $0.25, Revenue = $1.25 and Profit = 1.25–0.25 =1.00 X P(X) 25000 40000 55000 70000 0.10 0.30 0.45 0.15 P(X) = 1.00 Probability Distribution Table Expected Value Problem
  • 3. 3 6-13 Conditional Loss Table Demand Possible Stock Options 25000 40000 55000 70000 25000 40000 55000 70000 $0 15000 30000 45000 $3750 0 15000 30000 $7500 3750 0 15000 $11250 7500 3750 0 Expected Value Problem 6-14 Expected loss table for stocking 25,000 programs Demand Condition Loss P(X) Expected Loss 25000 40000 55000 70000 $3750 0 15000 30000 0.10 0.30 0.45 0.15 $375 0 6,750 4,500 Total= $11,625 Expected loss table for stocking 40,000 programs Demand Condition Loss P(X) Expected Loss 25000 40000 55000 70000 $0 15,000 30,000 45,000 0.10 0.30 0.45 0.15 $0 4,500 13,500 6,750 Total= $24,750 Expected Value Problem 6-15 Expected loss table for stocking 55000 programs Demand Condition Loss P(X) Expected Loss 25000 40000 55000 70000 $7500 3750 0 15000 0.10 0.30 0.45 0.15 $ 750 1,125 0 2,250 Total= $ 4,125 Expected loss table for stocking 70000 programs Demand Condition Loss P(X) Expected Loss 25000 40000 55000 70000 $11250 7500 3750 0 0.10 0.30 0.45 0.15 1,125 2,250 1,687.5 0 Total = $5,062.5 Print55,000asthe lossisminimum Expected Value Problem 6-1616 Binomial Probability Distribution The Binominal Probability Distribution is a discrete probability distribution in which each trial or observation can assume only one of two states. Also called Bernoulli Process 6-1717 Binomial Probability Distribution Characteristics 1. There are only two possible outcomes on a particular trial of an experiment. 2. The probability of outcomes of trials remain fixed over time. 3. Each trial is independent of any other trial. 4. The outcomes are mutually exclusive. 5. The random variable is the result of counts. 6-1818 Binomial Probability Formula
  • 4. 4 6-1919 Binomial Probability– Example:1 There are five flights daily from Pittsburgh via US Airways into the Bradford, Pennsylvania, Regional Airport. Suppose the probability that any flight arrives late is 0.20. (a) What is the probability that NONE of the flights are late today? (b) What is the probability that ONE of the flights are late today? 3277.0)3277)(.1)(1( )20.0-1()20.0( )-1()()0( 0-50 05 -    C CP xnx xn  4096.0=)4096)(.20.0)(5(= )20.0–1()20.0(C= )π–1()π(C=)1(P 1–51 15 x–nx xn 6-2020 For the example regarding the number of late flights, recall that  =.20 and n = 5. What is the average number of late flights? What is the variance of the number of late flights? Binomial Distribution – Mean and Variance: Example 6-2121 Binomial Distribution – Mean and Variance: Another Solution 6-22 Binomial Distribution - Example EXAMPLE Five percent of the worm gears produced by an automatic, high- speed Carter-Bell milling machine are defective. What is the probability that out of six gears selected at random none will be defective? Exactly one? Exactly two? Exactly three? Exactly four? Exactly five? Exactly six out of six? Binomial – Shapes for Varying  (n constant) Binomial – Shapes for Varying n ( constant) 6-23 Harry Ohme is in charge of the electronics section of a large department store. He has noticed that the probability that a customer who is just browsing will buy something is 0.3. Suppose that 15 customers browse in the electronics section each hour. (a) What is the probability that at least one browsing customer will buy something during a specified hour? (b) What is the probability that at least four browsing customers will buy something during a specified hour? (c) What is the probability that no browsing customers will buy anything during a specified hour? (d) What is the probability that no more than four browsing customers will buy something during a specified hour? Binomial Probability (Levin and Rubin) 6-24 9953.0=)30.0–1()30.0(C-1= )π–1()π(C=)1x(P)a( 0–510 015 x–nx xn ≥ 7032.0= ]1700.0+0916.0+0.0305+[0.0047–1 ])30.–1()30(.C+)30.–1()30(.C+ )30.–1()30(.C+)30.–1()30(.C-[1= P(3)]+P(2)+P(1)+[P(0)-1= )π–1()π(C=)4x(P)b( 3–513 315 2–512 215 1–511 115 0–510 015 x–nx xn≥ Binomial Probability (Levin and Rubin)
  • 5. 5 6-25 0047.0=)30.0–1()30.0(C= )π–1()π(C=)0=x(P)c( 0–510 015 x–nx xn 5154.0= ]2186.0+1700.0+0916.0+0.0305+[0.0047= ])30.–1()30(.C+ )30.–1()30(.C+)30.–1()30(.C+ )30.–1()30(.C+)30.–1()30(.C[= P(4)]+P(3)+P(2)+P(1)+[P(0)=)4x(P)d( 4–514 415 3–513 315 2–512 215 1–511 115 0–510 015 ≤ Binomial Probability (Levin and Rubin) 6-26 The latest nationwide political poll indicates that for Americans who are randomly selected, the probability that they are conservative is 0.55, the probability that they are liberal is 0.30, and the probability that they are middle-of-the-road is 0.15. Assuming that these probabilities are accurate, answer the following the questions pertaining to a randomly chosen group of 10 Americans. (a) What is the probability that 4 are liberal ? (b) What is the probability that none are conservative ? (c) What is the probability that 2 are middle-of-the-road ? (d) What is the probability that 8 are liberal ? Binomial Probability (Levin and Rubin) 6-27 0003.0=)3.–1()3(.C=)π–1()π(C=)4(P)a( 4–014 410 x–nx xn 2001.0=)55.–1()55(.C=)π–1()π(C=)10(P)b( 0–014 010 x–nx xn 2759.0=)51.–1()15(.C=)π–1()π(C=)2(P)c( 2–014 210 x–nx xn 00160.0= 00001.0+00014.0+00145.0= )3.–1()3(.C +)3.–1()3(.C+)3.–1()3(.C= )10(P+)9(P+)8(P=)π–1()π(C=)8≥x(P)d( 01–0110 10 9–019 9 8–018 810 x–nx xn Binomial Probability (Levin and Rubin) 6-28 Problems Related to Meeting Conditions of Binomial Distribution In real life problems, the probability of success or failure does not remain fixed all the time The trials may not be statistically independent of each other 6-2929 Binomial – Shapes for Varying  (n constant) 6-3030 Binomial – Shapes for Varying n ( constant)
  • 6. 6 6-3131 Cumulative Binomial Probability Distribution A study in June 2003 by the Illinois Department of Transportation concluded that 76.2% of front seat occupants used seat belts. A sample of 12 vehicles is selected. What is the probability the front seat occupants in at least 7 of the 12 vehicles are wearing seat belts? 6-3232 Poisson Probability Distribution The Poisson probability distribution describes the number of times some event occurs during a specified interval. The interval may be time, distance, area, or volume. Assumptions of the Poisson Distribution (1) The random variable is the number of times some event occurs during a defined interval (2) The probability is proportional to the length of the interval. (3) The intervals don’t overlap and are independent. 6-3333 Poisson Probability Distribution The Poisson distribution can be described mathematically using the formula: 6-3434 Mean and Variance of Poisson Probability Distribution The mean number of successes  can be determined in binomial situations by n, where n is the number of trials and  the probability of a success. The variance of the Poisson distribution is also equal to n . 6-3535 Assume baggage is rarely lost by Northwest Airlines. Suppose a random sample of 1,000 flights shows a total of 300 bags were lost. Thus, the arithmetic mean number of lost bags per flight is 0.3 (300/1,000). If the number of lost bags per flight follows a Poisson distribution with u = 0.3, find the probability of not losing any bags. Poisson Probability Distribution– Example:1 6-3636 Poisson Probability Distribution- Table Assume baggage is rarely lost by Northwest Airlines. Suppose a random sample of 1,000 flights shows a total of 300 bags were lost. Thus, the arithmetic mean number of lost bags per flight is 0.3 (300/1,000). If the number of lost bags per flight follows a Poisson distribution with mean = 0.3, find the probability of not losing any bags.
  • 7. 7 6-37 More About the Poisson Probability Distribution •The Poisson probability distribution is always positively skewed and the random variable has no specific upper limit. •The Poisson distribution for the lost bags illustration, where µ=0.3, is highly skewed. •As µ becomes larger, the Poisson distribution becomes more symmetrical. 6-38 1465.= !2 e4 = !x eµ =)x(P 4–2u–x The Lab Aid specializes in caring for minor injuries, colds, and flu. For the evening hours of 6-10 PM the mean number of arrivals is 4.0 per hour. What is the probability of 2 arrivals in an hour? Poisson Probability Distribution– Example:2 6-39 The US Bureau of Printing and Engraving (BPE) is responsible for printing this country’s paper money. The BPE has an impressively small frequency of printing errors; only 0.5 percent of all bills are too flawed for circulation. What is the probability that out of a batch of 1,000 bills (a) None are too flawed for circulation? (b) Ten are flawed for circulation? (c) Fifteen are flawed for circulation? Poisson Probability Distribution– Example:3 6-40 Poisson Probability Distribution– Example:3 01813.0= !10 e×)5( =)10(P 5–10 00016.0= !15 e×)5( =)15(P 5–15 Given us: n = 1000, π = 0.005 Thus: µ =nπ = (1000)(0.005) = 5 00674.0= !0 e5 = !x eµ =)0(P 5–0u–x 6-41 Concert Pianist Donna Prima has become quite upset at the number of coughs occurring in the audience just before she begins to play. On her latest tour, Donna estimates that on average eight coughs occur just before the start of her performance. Ms. Prima has sworn to her conductor that if she hears more than five coughs at tonight’s performance, she will refuse to play. What is the probability that she will not play tonight? Poisson Probability Distribution– Example:4 6-42 Poisson Probability Distribution– Example:4 8088.0=0.1912–1= 0.0916]+0.0573+0.0286+ 0.0107+0.0027+[0.0003–1= ] !5 e×)8( + !4 e×)8( + !3 e×)8( + !2 e×)8( + !1 e×)8( + !0 e×)8( [–1= 8–58–48–3 8–28–18–0 Given us: µ = 8 )]5(P+)4(P+)3(P+)2(P+)1(P+)0(P[–1
  • 8. 8 6-43 Poisson Distribution as an Approximation of Binomial Distribution The Poisson Distribution is a good approximation of the Binomial Distribution when n ≥ 20 and π ≤ 0.05. 6-44 A hospital has 20 kidney dialysis machines and that the chance of any of them malfunctioning during any day is 0.02. What is the probability that exactly three machines will be out of service on the dame day? !x e×)πn( =)x(P )πn(–x 007.0= 6 e×)4.0( = !3 e×)02.0×20( =)3(P )4.0(–3 )02.0×20(–3 006.0= ).020-1()02.0(C=)3(P )π-1()π(C=)x(P 3-023 320 x-nx xn Approximation of Binomial Distribution: An Example Binomial DistributionPoisson Distribution 6-45 Hypergeometric Probability Distribution 1. An outcome on each trial of an experiment is classified into one of two mutually exclusive categories—a success or a failure. 2. The probability of success and failure changes from trial to trial. 3. The trials are not independent, meaning that the outcome of one trial affects the outcome of any other trial. Note: Use hypergeometric distribution if experiment is binomial, but sampling is without replacement from a finite population where n/N is more than 0.05 Formula: EXAMPLE PlayTime Toys, Inc., employs 50 people in the Assembly Department. Forty of the employees belong to a union and ten do not. Five employees are selected at random to form a committee to meet with management regarding shift starting times. What is the probability that four of the five selected for the committee belong to a union? Here’s what’s given: N = 50 (number of employees) S = 40 (number of union employees) x = 4 (number of union employees selected) n = 5 (number of employees selected) 6-4646 End of Chapter 6