There are two types of farming tractors on the market, the FT250 and the FT500. The only difference between the two is that the FT250 is more prone to accidents than the FT500. Over their lifetime, 1 in 10 FT250s is expected to result in an accident, as compared to 1 in 25 FT500s. Further, 1 in 1,000 FT250s is expected to result in a fatal accident, as compared to only 1 in 5,000 FT500s. The FT250 sells for $125,000 while the FT500 sells for $137,000. At these prices, 2,000 of each model are purchased each year. What is the statistical value farmers place on avoiding a tractor accident? What is the statistical value of a life of a farmer?
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.
There are two types of farming tractors on the market, the FT250 and the FT500. The only difference between the two is that the FT250 is more prone to accidents than the FT500. Over their lifetime, 1 in 10 FT250s is expected to result in an accident, as compared to 1 in 25 FT500s. Further, 1 in 1,000 FT250s is expected to result in a fatal accident, as compared to only 1 in 5,000 FT500s. The FT250 sells for $125,000 while the FT500 sells for $137,000. At these prices, 2,000 of each model are purchased each year. What is the statistical value farmers place on avoiding a tractor accident? What is the statistical value of a life of a farmer?
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