Question:
Complete Problem 18 in Chapter 4 on page 159. REFERENCE:Albright, S. C, & Winston, W. L. (2017). Business Analytics: Data Analysis and Decision Making (6th ed.). Boston, MA: Cengage Learning
Chapter 4: Probability and Probability Distributions
Chapter 5: Normal, Binomial, Poisson, and Exponential Distributions
Chapter 6: Decision Making under Uncertainty
A quality inspector picks a sample of 15 items at random from a manufacturing process known to produce 10% defective items. Let X be the number of defective items found in the random sample of 15 items. Assume that the condition of each item is independent of that of each of the other items in the sample.
The probability distribution of X is provided in the file P04_18.xlsx.
Use simulation to generate 500 values of this random variable X.
Calculate the mean and standard deviation of the simulated values. How do they compare to the mean and standard deviation of the given probability distribution? (Albright, 2017, p. 159).
PLEASE GIVE AN EXPLANATION OF THE ANSWERS
REFERENCE: Albright, S. C, & Winston, W. L. (2017). Business Analytics: Data Analysis and Decision Making (6th ed.). Boston, MA: Cengage Learning
Chapter 4: Probability and Probability Distributions
Chapter 5: Normal, Binomial, Poisson, and Exponential Distributions
Chapter 6: Decision Making under Uncertainty