The following table is a partial probability distribution for the MRA Company's projected profits (x = profit in $1000s) for the fast year of operation (the negative value denotes a loss). x f (x) -100 .10 0 .20 50 .30 100 .25 150 .10 200 a.what is the proper value for f{200)? what isyour interpretation of this value? b.what is the probability that MRA will be profitable? c. what is the probability that MRA will make at least $100,000?
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!
The following table is a partial
projected profits (x = profit in $1000s) for the fast year of operation (the negative value denotes a loss).
|
x |
f (x) |
|
-100 |
.10 |
|
0 |
.20 |
|
50 |
.30 |
|
100 |
.25 |
|
150 |
.10 |
|
200 |
|
a.what is the proper value for f{200)?
what isyour interpretation of this value?
b.what is the probability that MRA will be profitable?
c. what is the probability that MRA will make at least $100,000?
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