Trevor is interested in purchasing the local hardware/sporting goods store. After examining accounting records for the past several years, he found that the store has been grossing over $850 per day about 60% of the business days it is open. Estimate the probability that the store will gross over $850 (a) at least 3 out of 5 business days (b) at least 6 out of 10 business days (c) fewer than 5 out of 10 business days (d) fewer than 6 out of the next 20 business days. Interpretation: if this actually happened, might it shake your confidence that p is less than 0.60? Explain. (e) more than 17 out of the next 20 business days. Interpretation: if this actually happened, might you suspect that p is greater than 0.60? Explain
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.
Trevor is interested in purchasing the local hardware/sporting goods store. After examining accounting records for the past several years, he found that the store has been grossing over $850 per day about 60% of the business days it is open. Estimate the probability that the store will gross over $850
(a) at least 3 out of 5 business days
(b) at least 6 out of 10 business days
(c) fewer than 5 out of 10 business days
(d) fewer than 6 out of the next 20 business days. Interpretation: if this actually happened, might it shake your confidence that p is less than 0.60? Explain.
(e) more than 17 out of the next 20 business days. Interpretation: if this actually happened, might you suspect that p is greater than 0.60? Explain
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
