Quantitative Business Methods - Probability and Probability Distributions Assignment
Part A. The Binomial distribution - Solved Exercises
Exercise 1.
(a) State the conditions required to apply the binomial distribution
(b) What is the probability of getting 3 heads in 5 flips of a balance coin?
(c) What is the probability of getting less than 3 heads in 5 flips of a balanced coin?
Exercise 2.
The probability is 0.20 that a person shopping at a certain supermarket will take advantage of its special promotion of pocket books.
(a) Find the probabilities that among six persons shopping at this market there will be 0, 1, 2, 3, 4, 5, or 6 persons who will take advantage (success) of this promotion.
(b) Construct a table with values of x and probabilities f(x) computed in (a), and construct a histogram of this binomial distribution.
(c) Calculate the mean (expected value) and standard deviation of the probability distribution.
Part B. The Poisson distribution - Solved Exercises
Exercise 1.
(a) What is the difference between the binomial and the Poisson distribution?
(b) Give some examples of when we can apply the Poisson distribution
(c) Gove the formula for the Poisson distribution and the meaning of the various symbols
(d) Under what conditions can the Poisson distribution be used as an approximation to the binomial distribution? Why can this be useful?
Assignment link - https://www.dropbox.com/s/pewqshz7oylv26w/Assignment.rar?dl=0