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Ch5 Statistics
Ch5 Statistics
Business
STATISTICS Tenth Edition
OUTLINE
5-1
Introduction to Discrete Probability Distributions
5-2
The Binomial Probability Distribution
5-3
Other Probability Distribution
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OUTLINE
5-1 Be able to calculate and interpret
Introduction to Discrete
theProbability Distributions
expected value of a discrete
random variable.
5-2
Be able to apply the binomial
The Binomial Probability Distribution
distribution to business decision-
making situations.
5-3
Other Probability Be able to compute probabilities
Distribution
for the Poisson and
hypergeometric distributions and
apply these distributions to
decision-making situations.
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Random Variable
CH5 CH6
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Discrete
Probability
Distributions
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Examples of discrete
probability
distribution…
T T x-value Probability
0 1/4 = 0.25
T H 1 2/4 = 0.50
2 1/4 = 0.25
H T The probability of observing a specific
outcome given the experiment design and
H H number of trial, e.g.
Prob[(H, H)|(p=0.5, n=2] = 0.25
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TEA BREAK
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COMBINATIONS
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The outcomes of throwing a coin with probability, p, for head and (1-
p) for tail
2
=1
0
𝐧 2
𝐤
𝐩𝐤 (𝟏 − 𝐩)𝐧 𝐤 0 head 2 tail =2
1
Let n = 2, then 2
=1
𝑃𝑟𝑜𝑏 𝑘 = 0 𝑝 = 𝑃𝑟𝑜𝑏 0,0 𝑝 = 1 × 𝑝 (1 − 𝑝) 2
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n = 10, p = 0.35, x ≤ 3
P(x = 3…) + P(x = 2…) + P(x =1…) + P(x =0…)
= P(x ≤ 3, n =10, p = 0.35) = 0.5138
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BUSINESS APPLICATION
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WHY DOES IT
MATTER?
How about the Normal
distribution?
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BREAKTIME
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BUSINESS APPLICATION
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Equi-dispersion (Mean =
Variance) is an
assumption of Poisson
distribution
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BREAKTIME
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n trials in a sample
taken from a finite population of size N
Sample taken without replacement
Trials are dependent (e.g.. N, N-1, N-2…N-n)
The probability changes from trial to trial
Concerned with finding the probability of x successes in
the sample where there are X successes in the population
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Find P (x = 2) if N = 10, X = 4, n = 3, x = 2.
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BREAKTIME
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