Amanda Fall is starting up a new house painting business, Fall Colors. She has been advertisingin the local newspaper for several months. Based on inquiries and informal surveys of the localhousing market, she anticipates that she will get painting jobs at the rate of four per week(Poisson distributed). Amanda has also determined that it will take a four-person team ofpainters an average of 0.7 week (exponentially distributed) for a typical painting job. If the average price for a painting job is $1,700 and Amanda pays a team of painters $500 per week, will she make any money?
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
Amanda Fall is starting up a new house painting business, Fall Colors. She has been advertising
in the local newspaper for several months. Based on inquiries and informal surveys of the local
housing market, she anticipates that she will get painting jobs at the rate of four per week
(Poisson distributed). Amanda has also determined that it will take a four-person team of
painters an average of 0.7 week (exponentially distributed) for a typical painting job. If the average price for a painting job is $1,700 and Amanda pays a team of painters
$500 per week, will she make any money?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
