An inventor has developed a system that allows visitors to museums, zoos and other attractions to get information at the touch of a digital code. For example, zoo patrons can listen to an announcement (recorded on a microchip) about each animal they see. It is anticipated that the device would rent for Ksh3.00 each. The installation cost for the complete system is expected to be about Ksh400,000. The ABC zoo is interested in having the system installed, but the management is uncertain about whether to take the risk. A financial analysis of the problem indicates that if more than 10% of the zoo visitors rent the system, the zoo will make a profit. To help make the decision, a random sample of 400 zoo visitors is given details of the systems capabilities and cost. If 48 people say that they would rent the device, can the management of the zoo conclude at the 5% significance level that the investment would result in a profit
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
An inventor has developed a system that allows visitors to museums, zoos and other attractions to get information at the touch of a digital code. For example, zoo patrons can listen to an announcement (recorded on a microchip) about each animal they see. It is anticipated that the device would rent for Ksh3.00 each. The installation cost for the complete system is expected to be about Ksh400,000. The ABC zoo is interested in having the system installed, but the management is uncertain about whether to take the risk. A financial analysis of the problem indicates that if more than 10% of the zoo visitors rent the system, the zoo will make a profit. To help make the decision, a random sample of 400 zoo visitors is given details of the systems capabilities and cost. If 48 people say that they would rent the device, can the management of the zoo conclude at the 5% significance level that the investment would result in a profit
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
