Essentials of Business Analytics (MindTap Course List)
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN: 9781305627734
Author: Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher: Cengage Learning
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Chapter 5, Problem 19P

a.

To determine

Find the value of f0.

a.

Expert Solution
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Answer to Problem 19P

The value of f0is 0.3487.

Explanation of Solution

Calculation:

The binomial experiment withn=10 and p=0.10.

The probability of obtaining x successes in n independent trails of a binomial experiment is,

fx=nxpx1pnx,x=0,1,2,...,n

Where, p is the probability of success.

Substitute n=10 and p=0.10 and x=0

f0=1000.10010.10100=10!0!100!0.1000.910=0.3487

Thus, the probability of zero success is 0.3487.

b.

To determine

Find the value of f2.

b.

Expert Solution
Check Mark

Answer to Problem 19P

The value of f2is 0.1937.

Explanation of Solution

Calculation:

Consider n=10 and p=0.10 and x=2

The value of f2 is

f2=1020.10210.10102=10!2!102!0.1020.98=0.1937

Thus, the probability of two successes is 0.1937.

c.

To determine

Find the probability of at most two successes.

c.

Expert Solution
Check Mark

Answer to Problem 19P

The probability of at most two successes is 0.9298.

Explanation of Solution

Calculation:

Here,Px2is the probability of at most two successes. This probability is the sum of the probabilities at the pointsx=0,x=1 and x=2. That is,

Px2=f0+f1+f(2)

The probability f1 is obtained by substituting the values n=10 and p=0.10 and x=1

in the binomial probability formula. That is,

f1=1010.10110.10101=10!1!101!0.1010.99=0.3874

Substitute the other probability values from part (a) and (b),

Px2=f0+f1+f(2)=0.3487+0.3874+0.1937=0.9298

Thus, the probability of at most two successes is 0.9298.

d.

To determine

Find the probability of at least one success.

d.

Expert Solution
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Answer to Problem 19P

The probability of at least one success is 0.6513.

Explanation of Solution

Calculation:

Here, Px1is the probability of at least one success can be obtained as the compliment the probabilityPx<1. That is,

Px1=1Px<1=1f0

Substitute the value from part (a),

Px1=1f0=10.3487=0.6513

Thus, the probability of at least one success is 0.6513.

e.

To determine

Find the expected value.

e.

Expert Solution
Check Mark

Answer to Problem 19P

The expected value of the binomial random variable is 1.

Explanation of Solution

Calculation:

The expected value of a binomial random variable is given by,

Ex=μ=np

Substitute the values n=10 and p=0.1

Ex=10×0.1=1

Thus, the expected value of the binomial random variable is 1.

f.

To determine

Find the variance and standard deviation.

f.

Expert Solution
Check Mark

Answer to Problem 19P

The variance of the binomial random variable is 0.9.

The standard deviation of the binomial random variable is 0.95.

Explanation of Solution

Calculation:

The variance of a binomial random variable is given by,

σ2=np1p

Substituting the values n=10 and p=0.1

σ2=np1p=10×0.110.1=0.9

The variance of the binomial random variable is 0.9.

The standard deviation of the random variable x is obtained by taking the square root of variance.

Thus, the standard deviation of the binomial random variable is given by,

σx=np1p=0.9=0.95

The standard deviation of the binomial random variable is 0.95.

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