Book cover for Statistics for Business and Economics

Statistics for Business and Economics

David R. Anderson, Dennis J. Sweeney, Thomas A. Williams

ISBN #9780324365054

10th Edition

999 Questions

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39,032 Students Helped

Homework Questions

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Summary

Learning Objectives

Key Concepts

Example Problems

Explanations

Common Mistakes

Summary

This section covers the fundamental aspects of discrete probability distributions, beginning with the definition and examples of discrete random variables contrasted with continuous ones. Key components include the probability function, expected value, variance, and standard deviation. Students learn to apply these principles to different probability models such as binomial, Poisson, and hypergeometric distributions. Each model requires careful consideration of its assumptions and is applicable to various real-world scenarios, from marketing problems to quality control and service operations.

Learning Objectives

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Key Concepts

CONCEPT

DEFINITION

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Example Problems

Example 1

Consider the experiment of tossing a coin twice. a. List the experimental outcomes. b. Define a random variable that represents the number of heads occurring on the two tosses. c. Show what value the random variable would assume for each of the experimental outcomes. d. Is this random variable discrete or continuous?

Example 2

Consider the experiment of a worker assembling a product. a. Define a random variable that represents the time in minutes required to assemble the product. b. What values may the random variable assume? c. Is the random variable discrete or continuous?

Example 3

Three students scheduled interviews for summer employment at the Brookwood Institute. In each case the interview results in either an offer for a position or no offer. Experimental outcomes are defined in terms of the results of the three interviews. a. List the experimental outcomes. b. Define a random variable that represents the number of offers made. Is the random variable continuous? c. Show the value of the random variable for each of the experimental outcomes.

Example 4

Suppose we know home mortgage rates for 12 Florida lending institutions. Assume that the random variable of interest is the number of lending institutions in this group that of fers a 30 -year fixed rate of $8.5 \%$ or less. What values may this random variable assume?

Example 5

To perform a certain type of blood analysis, lab technicians must perform two procedures. The first procedure requires either one or two separate steps, and the second procedure requires either one, two, or three steps. a. List the experimental outcomes associated with performing the blood analysis. b. If the random variable of interest is the total number of steps required to do the complete analysis (both procedures), show what value the random variable will assume for each of the experimental outcomes.

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Step-by-Step Explanations

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Common Mistakes

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