Billy’s Bakery bakes fresh bagels each morning. The daily demand for bagels is a random variable with a distribution estimated from prior experience given by Number of bagels sold in one day Probability 0 0.05 5 0.10 10 0.10 15 0.20 20 0.25 25 0.15 30 0.10 35 0.05 The bagels cost Billy’s 8 cents to make, and they are sold for 35 cents each. Bagels unsold at the end of the day are purchased by a nearby charity soup kitchen for 3 cents each.     MSCI 432 Fall 201 5 2 a) Based on the given discrete distribution, how many bagels should Billy’s bake at the start of each day? (Your answer should b e a multiple of 5.) b) If you were to approximate the discrete distribution with a normal distribution, would you expect the resulting solution to be close to the answer that you obtained in part (a)? Why or why not?

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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.