Spectrum provides cable television and internet service to millions of customers. Suppose that the management of Spectrum subjectively assesses a probability distribution for the number of new subscribers next year in the state of New York as follows.
x
f(x)
100,000
0.05
200,000
0.20
300,000
0.25
400,000
0.30
500,000
0.10
600,000
0.10
(a)
Is this probability distribution valid? Explain.
This probability distribution is not valid because f(x) ≥ 0 for x = 100,000, 200,000, 300,000, 400,000, 500,000, 600,000.
(b)
What is the probability Spectrum will obtain more than 400,000 new subscribers?
(c)
What is the probability Spectrum will obtain fewer than 200,000 new subscribers?