The AMA makes electric bike investment. One out of every 50 electric bike is faulty, but AMA doesn't know which ones are faulty until a buyer complains. Suppose AMA makes a 150 Php profit on the sale of any working electric bikes, but suffers a loss of 4000 Php for every faulty gadget because they have to repair the unit. Check whether AMA can expect a profit in the long term.
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.
The AMA makes electric bike investment. One out of every 50 electric bike is faulty, but AMA doesn't know which ones are faulty until a buyer complains. Suppose AMA makes a 150 Php profit on the sale of any working electric bikes, but suffers a loss of 4000 Php for every faulty gadget because they have to repair the unit. Check whether AMA can expect a profit in the long term.
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