Statistical Techniques in Business and Economics, 16th Edition
Statistical Techniques in Business and Economics, 16th Edition
16th Edition
ISBN: 9780078020520
Author: Douglas A. Lind, William G Marchal, Samuel A. Wathen
Publisher: McGraw-Hill Education
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Chapter 6, Problem 53CE

a.

To determine

Create a probability distribution for the number of travelers who plan their trips within two weeks of departure.

a.

Expert Solution
Check Mark

Answer to Problem 53CE

The probability distribution for the number of travelers who plan their trips within two weeks of departure is as follows:

Number of travelersProbability
00.0001
10.0019
20.0116
30.0418
40.1020
50.1768
60.2234
70.2075
80.1405
90.0676
100.0220
110.0043
120.0004

Explanation of Solution

The formula to find the binomial probability is as follows:

P(X)=Cnxπx(1π)(nx)where, C is the combination.n is the number of trials.X is the random variable.π is the probability of success.

Let x denotes the travelers who plan their trips within two weeks of departure.

Here, n=12; π=0.52

For the number of traveler x=0, the probability is calculated as follows:

P(0)=C120(0.52)0(10.52)(120)=12!0!(120)!(0.52)0(0.48)12=1×1×0.0001=0.0001

Similarly the probability value for the remaining x values is calculated.

Thus, the probability distribution for the number of travelers who plan their trips within two weeks of departure is obtained as follows:

Number of travelersProbability
0C120(0.52)0(10.52)(120)=0.0001
1C121(0.52)1(10.52)(121)=0.0019
2C122(0.52)2(10.52)(122)=0.0116
3C123(0.52)3(10.52)(123)=0.0418
4C124(0.52)4(10.52)(124)=0.1020
5C125(0.52)5(10.52)(125)=0.1768
6C126(0.52)6(10.52)(126)=0.2234
7C127(0.52)7(10.52)(127)=0.2075
8C128(0.52)8(10.52)(128)=0.1405
9C129(0.52)9(10.52)(129)=0.0676
10C1210(0.52)10(10.52)(1210)=0.0220
11C1211(0.52)11(10.52)(1211)=0.0043
12C1212(0.52)12(10.52)(1212)=0.0004

b.

To determine

Compute the mean and standard deviation for the given distribution.

b.

Expert Solution
Check Mark

Answer to Problem 53CE

The mean is 6.24.

The standard deviation is 1.7307.

Explanation of Solution

The mean and standard deviation of the binomial distribution are as follows:

μ=nπσ=nπ(1π)

The mean of the distribution is calculated as follows:

μ=12×0.52=6.24

Therefore, the mean of the distribution is 6.24.

The standard deviation of the distribution is calculated as follows:

σ=12×0.52×(10.52)=2.9952=1.7307

Therefore, the standard deviation of the distribution is 1.7307.

c.

To determine

Compute the probability of exactly 5 of the 12 selected business travelers plan their trips within two weeks of departure.

c.

Expert Solution
Check Mark

Answer to Problem 53CE

The probability of exactly 5 of the 12 selected business travelers plan their trips within two weeks of departure is 0.1775.

Explanation of Solution

The probability of exactly 5 of the 12 selected business travelers plan their trips within two weeks of departure is calculated as follows:

P(x=5)=C125(0.52)5(10.52)(125)=12!5!(125)!×0.525×0.487=792×0.0380×0.0059=0.1775

Therefore, the probability of exactly 5 of the 12 selected business travelers plan their trips within two weeks of departure is 0.1775.

d.

To determine

Compute the probability that 5 or fewer of the 12 selected business travelers plan their trips within two weeks of departure.

d.

Expert Solution
Check Mark

Answer to Problem 53CE

The probability that 5 or fewer of the 12 selected business travelers plan their trips within two weeks of departure is 0.3343.

Explanation of Solution

The probability that 5 or fewer of the 12 selected business travelers plan their trips within two weeks of departure is calculated as follows:

P(x5)=P(x=0)+P(x=1)+P(x=2)+P(x=3)+P(x=4)+P(x=5)={[C120(0.52)0(10.52)(120)]+[C121(0.52)1(10.52)(121)]+[C122(0.52)2(10.52)(122)]+[C123(0.52)3(10.52)(123)]+[C124(0.52)4(10.52)(124)]+[C125(0.52)5(10.52)(125)]}={[12!0!(120)!×0.520×0.4812]+[12!1!(121)!×0.521×0.4811]+[12!2!(122)!×0.522×0.4810]+[12!3!(123)!×0.523×0.489]+[12!4!(124)!×0.524×0.488]+[12!5!(125)!×0.525×0.487]}=(0.0002+0.0019+0.0116+0.0418+0.1020+0.1768)=0.3343

Therefore, the probability that 5 or fewer of the 12 selected business travelers plan their trips within two weeks of departure is 0.3343.

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Chapter 6 Solutions

Statistical Techniques in Business and Economics, 16th Edition

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