ompany is deciding where to place a restaurant that they are planning to build. They can build it on a center of a business district, so they can charge higher but needs to compete with more restaurants nearby. They can also build it in front of a school where they have to charge less but they have less to compete with. The company analyzed how those considerations will affect earning and they have presented their finding using a probability distribution. Probability distribution of building the restaurant in a business district. Profit (X) Php 1 000 000 Php -2 000 000 P (X) .80 .20 Probability distribution of building the restaurant in front of a school Profit (X) Php 500 000 Php -2 000 000 P (X) .95 .05 Based on the probability dist
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.
A company is deciding where to place a restaurant that they are planning to build. They can
build it on a center of a business district, so they can charge higher but needs to compete with
more restaurants nearby. They can also build it in front of a school where they have to charge
less but they have less to compete with. The company analyzed how those considerations will
affect earning and they have presented their finding using a
Probability distribution of building the restaurant in a business district.
| Profit (X) | Php 1 000 000 | Php -2 000 000 |
| P (X) | .80 | .20 |
Probability distribution of building the restaurant in front of a school
| Profit (X) | Php 500 000 | Php -2 000 000 |
| P (X) | .95 | .05 |
Based on the probability distributions, where should they build the restaurant?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
