A firm owning a theater has identified, over the next 3-year period, four possible sales outcomes – High, Medium, Low, and Very Low. Theaters have recently been opened after remaining closed for 6 months due to Covid 19 pandemic. Nobody is sure what shape the pandemic is going to take in the future. Explain how you would help the firm to assign probability estimates to the possible sales outcomes(Which approach can be used and that approach?)
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
A firm owning a theater has identified, over the next 3-year period, four possible sales outcomes – High, Medium, Low, and Very Low. Theaters have recently been opened after remaining closed for 6 months due to Covid 19 pandemic. Nobody is sure what shape the pandemic is going to take in the future. Explain how you would help the firm to assign probability estimates to the possible sales outcomes(Which approach can be used and that approach?)
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