The Easy Credit Company reports the following table representing a breakdown of costumers according to the amount the owe and whether a cash advance has been made. An auditor randomly selects one of the accounts. Amounts owed by the customers Cash Advance? Yes No $0 - $199.99 245 2890 $200 - $399.99 380 1700 $400 - $599.99 500 1425 $600 - $799.99 415 940 $800 - $999.99 260 480 $1000 or more 290 475 Total customers 2090 7910 Are the events “receiving a cash advance” and “owning $1000 or more” mutually exclusive? Explain using probabilities. 2. Are the events “receiving a cash advance” and “owning $1000 or more” independent? Explain using probabilities.
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.
The Easy Credit Company reports the following table representing a breakdown of costumers according to the amount the owe and whether a cash advance has been made. An auditor randomly selects one of the accounts.
|
Amounts owed by the customers |
Cash Advance? |
|
|
Yes |
No |
|
|
$0 - $199.99 |
245 |
2890 |
|
$200 - $399.99 |
380 |
1700 |
|
$400 - $599.99 |
500 |
1425 |
|
$600 - $799.99 |
415 |
940 |
|
$800 - $999.99 |
260 |
480 |
|
$1000 or more |
290 |
475 |
|
Total customers |
2090 |
7910 |
- Are the
events “receiving a cash advance” and “owning $1000 or more” mutually exclusive? Explain using probabilities.
2. Are the events “receiving a cash advance” and “owning $1000 or more” independent? Explain using probabilities.
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