Holland America Cruise Lines has three luxury cruise ships that sail to Alaska during the summer months. Since the business is very competitive, the ships must run full during the summer if the company is to turn a profit on this line. A tourism expert hired by Holland America believes there is a 0.92 chance the ships will sail full during the coming summer if the dollar does not appreciate against European currencies, and a 0.75 chance they will sail full if the dollar does appreciate in Europe (appreciation of the dollar in Europe draws U.S. tourists there, away from U.S. destinations). Economists believe the dollar has a 0.23 chance of appreciating against European currencies soon. What is the probability the ships will sail full
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.
Holland America Cruise Lines has three luxury cruise ships that sail to Alaska
during the summer months. Since the business is very competitive, the ships must run
full during the summer if the company is to turn a profit on this line. A tourism expert
hired by Holland America believes there is a 0.92 chance the ships will sail full during
the coming summer if the dollar does not appreciate against European currencies, and
a 0.75 chance they will sail full if the dollar does appreciate in Europe (appreciation of
the dollar in Europe draws U.S. tourists there, away from U.S. destinations). Economists believe the dollar has a 0.23 chance of appreciating against European currencies
soon. What is the probability the ships will sail full?
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