ou are interested in purchasing the local florist shop, located next to Vanier College. After examining the accounting records for the past several years, you note that the store has been grossing over $975.00 per day about 65% of the days that it is open. (a) Use the formula for Binomial probabilities to find the probability that the store will gross over $975.00 for exactly 5 of the next 7 business days. What information does this give you about purchasing the store? (b) Use the table of the Binomial Probability Distribution to find the probability that the store will gross over $975.00 for at least 6 of the next 10 business days. How does this probability contribute to your decision about purchasing the store?
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.
You are interested in purchasing the local florist shop, located next to Vanier College. After examining the accounting records for the past several years, you note that the store has been grossing over $975.00 per day about 65% of the days that it is open. (a) Use the formula for Binomial probabilities to find the probability that the store will gross over $975.00 for exactly 5 of the next 7 business days. What information does this give you about purchasing the store? (b) Use the table of the Binomial Probability Distribution to find the probability that the store will gross over $975.00 for at least 6 of the next 10 business days. How does this probability contribute to your decision about purchasing the store? (c) If you collect the store's records for the last 10 business days and find that it had grossed LESS than $975.00 on 7 of the days, would you suspect that the store's financial situation had changed? Use a Binomial probability to justify your answer. (d) Use the Binomial approximation to the
Please provide solution in excel with formulas used. Thanks
Excel Function: Excel provides the following functions regarding the binomial distribution: BINOMDIST(x, n, p, cum) where n = the number of trials, p = the probability of success for each trial and cum takes the value TRUE or FALSE.
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