An online cosmetic seller intends to send parcel on Cash On delivery in an attempt to increase her business. One out of every 10 parcels are returned, and the seller loses Rs. 350 (paid for delivery). But if the parcel is received, she gets a flat profit of Rs. 1000. Should she go for this new strategy? What is her expected net gain on each parcel?
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 online cosmetic seller intends to send parcel on Cash On delivery in an attempt to increase her business. One out of every 10 parcels are returned, and the seller loses Rs. 350 (paid for delivery). But if the parcel is received, she gets a flat profit of Rs. 1000. Should she go for this new strategy? What is her expected net gain on each parcel?
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