This document discusses binomial and Poisson distributions. It provides examples of how to calculate the probability of successes for binomial distributions and the probability of events occurring for Poisson distributions. It also includes examples of applying these distributions to calculate expected costs based on probabilities of defects or hospital admissions. The document concludes with a table for the Poisson distribution.
This document discusses binomial and Poisson distributions. It provides examples of how to calculate the probability of successes for binomial distributions and the probability of events occurring for Poisson distributions. It also includes examples of applying these distributions to calculate expected costs based on probabilities of defects or hospital admissions. The document concludes with a table for the Poisson distribution.
This document discusses binomial and Poisson distributions. It provides examples of how to calculate the probability of successes for binomial distributions and the probability of events occurring for Poisson distributions. It also includes examples of applying these distributions to calculate expected costs based on probabilities of defects or hospital admissions. The document concludes with a table for the Poisson distribution.
L-14 BITS Pilani Dr. Sachin Waigaonkar K K Birla Goa Campus Binomial Distribution
• A series of independent trials.
• Each trail results in success or failure. • The probability of success on any trial is assumed constant as p. • Let x denote number of successes if n such trials are conducted. • Then probability of x successes is given by: p(x) n C x p x (1 p ) n x
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Example 2
• A company involved in making solar panels estimates
that 3% of its product is nonconforming. If a random sample of 5 items is selected from the production output, what is the probability that none are nonconforming? That 2 are nonconforming? The cost of rectifying a nonconforming panel is estimated to be $5. For shipment of 1000 panels, what is the expected cost of rectification?
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Poisson’s Distribution
• Used to model the number of events that happen within
a product unit, space or time period. • It is assumed that events happen randomly and independently. • The Poisson variable is denoted by X. An observed value of X is represented by x. • The probability distribution of no. of events x is given by: e p( x) x x! λ= Average no. of events that happen over a product, volume or time period specified.
The mean and the variance of Poisson distribution are equal
and are given by: BITS Pilani, K K Birla Goa Campus Ex. 5
It is estimated that the average number of surface defects in 20
m2 of paper produced by a process is 3. What is the probability of finding no more than 2 defects in 40 m2 of paper through random selection?
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Ex.6
A local hospital estimates that the number of patients admitted
daily to the emergency room has a Poisson probability distribution with a mean of 4.0. What is the probability that on a given day: • Only 2 patients will be admitted? • At most 6 patients will be admitted? • No one will be admitted? • What is the standard deviation of the number of patients? • For each patient admitted, the expected daily operational expenses to the hospital are $800. • If the hospital wants to be 94.9% sure of meeting daily expenses, how much money should it retain for operational expenses daily?