The distributor of a machine for cytogenics has developed a new model. The company estimates that when it is introduced into the market, it will be very successful with a probability 0.6, moderately successful with a probability 0.3, and not successful with probability 0.1. The estimated yearly profit associated with the model being very successful is $15 million and with it being moderately successful is $5 million; not successful would result in a loss of $500,000. Let X be the yearly profit of the new model. Determine the probability mass function of X.
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 distributor of a machine for cytogenics has
developed a new model. The company estimates that when it
is introduced into the market, it will be very successful with a
and not successful with probability 0.1. The estimated yearly
profit associated with the model being very successful is $15
million and with it being moderately successful is $5 million;
not successful would result in a loss of $500,000. Let X be the
yearly profit of the new model. Determine the probability mass
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
