Groceries A grocery store’s receipts show that Sundaycustomer purchases have a skewed distribution with amean of $32 and a standard deviation of $20.a) Explain why you cannot determine the probability thatthe next Sunday customer will spend at least $40.b) Can you estimate the probability that the next 10Sunday customers will spend an average of at least$40? Explain.c) Is it likely that the next 50 Sunday customers willspend an average of at least $40? Explain.
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!
Groceries A grocery store’s receipts show that Sunday
customer purchases have a skewed distribution with a
mean of $32 and a standard deviation of $20.
a) Explain why you cannot determine the
the next Sunday customer will spend at least $40.
b) Can you estimate the probability that the next 10
Sunday customers will spend an average of at least
$40? Explain.
c) Is it likely that the next 50 Sunday customers will
spend an average of at least $40? Explain.
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