Bill Denomination Number of Bills $1 $5 $10 $20 $50 $100 520 260 130 60 29 1 Total 1000
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
A creative entrepreneur has created a novelty soap called jackpot. Inside each bar of jackpot
soap is a rolled-up bill of U.S. currency. There are 1000 bars of soap in the initial offering
of the soap. Although the denomination of the bill inside a bar of soap is unknown,
the distribution of bills in these first 1000 bars is given in the following table:
How many bars of soap does a customer have to buy so that, on average, she has purchased
two containing a $50 or $100 bill? (hint: Use the hypergeometric distribution in
ASP to answer this question.)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
