Statistical Techniques in Business and Economics
Statistical Techniques in Business and Economics
16th Edition
ISBN: 9780077639723
Author: Lind
Publisher: Mcgraw-Hill Course Content Delivery
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Chapter 7, Problem 36E

a.

To determine

Find the expected number of guests to accept the invitation.

a.

Expert Solution
Check Mark

Answer to Problem 36E

The expected number of guests to accept the invitation is 131.

Explanation of Solution

It is given that 23 of the guests respond to invitations that they will attend the wedding and the total number of invitations planned is 197. The number of guests responds to invitation that they will attend the wedding follows a binomial distribution.

That is, n=197 and π=23.

The mean can be obtained as follows:

μ=nπ=197(23)=131.33

Since the number of persons cannot be a decimal value, the expected number of guests to accept the invitation is 131.

b.

To determine

Find the standard deviation.

b.

Expert Solution
Check Mark

Answer to Problem 36E

The standard deviation is 6.62.

Explanation of Solution

The standard deviation can be obtained as follows:

σ=nπ(1π)=197(23)(123)=43.778=6.61656.62

Therefore, the standard deviation is 6.62.

c.

To determine

Find the probability that 140 or more will accept the invitation.

c.

Expert Solution
Check Mark

Answer to Problem 36E

The probability that 140 or more will accept the invitation is 0. 1086.

Explanation of Solution

The probability that 140 or more will accept the invitation can be obtained as follows:

P(X140)=P(X>1400.5)         [Apply the continuity correction factor]=P(X>139.5)

From Parts (a) & (b), X~N(131.33, 6.62)

The value of P(X<139.5) is calculated as follows:

Step-by-step procedure to obtain the probability using Excel:

  • Click on the Formulas tab in the top menu.
  • Select Insert function, then from category box, select Statistical and below that NORM.DIST.
  • Click Ok.
  • In the dialog box, Enter X value as 139.5, Mean as 131.33, Standard_dev as 6.62, and Cumulative as TRUE.
  • Click OK.

Output obtained using EXCEL is represented as follows:

Statistical Techniques in Business and Economics, Chapter 7, Problem 36E , additional homework tip  1

From the above output, P(X<139.5) is 0.8914.

Consider,

P(X>139.5)=1P(X<139.5)=10.8914=0.1086

Therefore, the probability that 140 or more will accept the invitation is 0.1086.

d.

To determine

Find the probability that exactly 140 will accept the invitation.

d.

Expert Solution
Check Mark

Answer to Problem 36E

The probability that exactly 140 will accept the invitation is 0. 0256.

Explanation of Solution

The probability that exactly 140 will accept the invitation can be written as follows:

P(X=140)=P(1400.5<X<140+0.5)      [Apply the continuity correction factor]=P(139.5<X<140.5)=P(X<140.5)P(X<139.5)

From Part (c), P(X<139.5) is 0.8914.

The value of P(X<140.5) is calculated as follows:

Step-by-step procedure to obtain the probability using Excel:

  • Click on the Formulas tab in the top menu.
  • Select Insert function, then from category box, select Statistical and below that NORM.DIST.
  • Click Ok.
  • In the dialog box, Enter X value as 140.5, Mean as 131.33, Standard_dev as 6.62, and Cumulative as TRUE.
  • Click OK.

Output obtained using EXCEL is represented as follows:

Statistical Techniques in Business and Economics, Chapter 7, Problem 36E , additional homework tip  2

From the above output, P(X<140.5) is 0.9170.

Consider,

P(X=140)=P(X<140.5)P(X<139.5)=0.91700.8914=0.0256

Thus, the probability that exactly 150 will accept the invitation is 0.0256.

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Chapter 7 Solutions

Statistical Techniques in Business and Economics

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