Module 5 Exercise 1

1. Show that the Binomial distributions approaches a normal distribution as the numb
(Hint: See the video on the normal and set up the Binomial in the same way)

2. Show that the Poisson distribution approaches a normal distribution as the mean in
(Hint: See the video on the normal and set up the Poisson in the same way).

3. A diner is open for breakfast and dinner, starting at 6 am and closing at 2pm (8 Hou
results using manual and Excel calculation)
a). What is the probability that it will have exactly 50 clients tomorrow?
a). Each client nets $3.5, for a daily total profit of $140. The owner plans to run a sing
much does the average need to increase to increase daily total profit by $100? What i
actual number of daily clients will remain at 40?
rmal distribution as the number of trials increases. Explore this with different values of s and p.
ial in the same way)

al distribution as the mean increases.

n in the same way).

am and closing at 2pm (8 Hours). It has an average of 5 clients an hour or 40 in total. (Show the

ents tomorrow?
The owner plans to run a single ad in the local weekly paper that costs which costs $200. By how
total profit by $100? What is the chance that tomorrow, with the new average visits per hour, the
 ues of s and p.

otal. (Show the

ts $200. By how
isits per hour, the
 Binomial Distribution

X Point Prob Cumulative Prob Prob= 0.3

0 0.0282 0.0282 Trials= 10
1 0.1211 0.1493
2 0.2335 0.3828
3 0.2668 0.6496
4 0.2001 0.8497
5 0.1029 0.9527
6 0.0368 0.9894
7 0.0090 0.9984
8 0.0014 0.9999
9 0.0001 1.0000
10 0.0000 1.0000

Mean= 3
Variance= 2.1
std= 1.449137675

Binomial Distribution Normal D

1.2000 1.2000

1.0000 1.0000

0.8000 0.8000
Probability

Probability

0.6000 Point Prob

0.6000
Cumulative Prob
0.4000 0.4000
0.2000 0.2000
0.0000 0.0000
1 2 3 4 5 6 7 8 9 10 11 1 2 3 4 5 6
X X

Binomial Distribution (n=10, P=0.3) Binomial vs N

0.3000 (n=
0.3000
0.2500
0.2500
0.2000
0.2000
Probability

Pobability

0.1500 0.1500

0.1000
0.1000
0.0500
0.0500
0.0000
1 2 3 4
0.0000
1 2 3 4 5 6 7 8 9 10 11
 Pobabilit
Probabili
0.1500 0.1500

0.1000
0.1000
0.0500
0.0500
0.0000
1 2 3 4
0.0000
1 2 3 4 5 6 7 8 9 10 11
X
Bino
 Normal Distribition
Answers
1.
Point Prob Cumulative Prob
Step a
0.0323 0.0192 We first need to caclculate the Binomial probabily distribution for the set o
0.1062 0.0838 probability value of 0.3. The set of discrete numbers will go from 0 to 10. T
That is =Binom.dist(numbers, trials, probability,cumulative).
0.2170 0.2451
0.2753 0.5000 Step b
0.2170 0.7549 In order to make a comparison to Normal distribution, we need to calculate
information from the Binomila exercise. In doing so, the mean equals numb
0.1062 0.9162 varianve is equal to number of trials multiplited by the probabaility multipl
0.0323 0.9808 distribution formula in excel. That is, Norm.dist(X,mean,std deviation,cumu
Please remember to fix the values for the mean, probability, trials and stan
0.0061 0.9971
0.0007 0.9997 Step c
Plot both the normal and binomial distributuins on the same bar chart mak
0.0001 1.0000
0.0000 1.0000 Repeat steps a to c using a larger number of trials. In this case 100 was use
increases, the binomial and normal distributions become equal. As we adju
probility values, the distribution bunches towards the right because the m

Normal Distribution
1.2000

1.0000

0.8000
Probability

0.6000 Point Prob

Cumulative Prob
0.4000

0.2000

0.0000
1 2 3 4 5 6 7 8 9 10 11
X

Binomial vs Normal Distribution

(n=10, P=0.3)
0.3000

0.2500

0.2000
Pobability

0.1500

0.1000

0.0500

0.0000
1 2 3 4 5 6 7 8 9 10 11
X
Pobabilit
0.1500

0.1000

0.0500

0.0000
1 2 3 4 5 6 7 8 9 10 11
X

Binomial Normal
bily distribution for the set of random numbers. Here we will do 10 trials and assign
mbers will go from 0 to 10. Then aply the binomal distribution formula in the excel.
,cumulative).

ibution, we need to calculate the mean and standard deviation using the
ng so, the mean equals number of trials multiplied by the probability. While the
d by the probabaility multiplied by (1- Probability). Then, we apply the normal
t(X,mean,std deviation,cumulative).
n, probability, trials and stanadrd deviation.

s on the same bar chart make a comparison. Label the graph correctly.

als. In this case 100 was used. You will realize that as the number of trails
ns become equal. As we adjust the probability value, we will see that with higher
ards the right because the mean gets larger. The converse is true.
 Binomial Distribution Normal Distribition

X Point Prob Cumulative Prob Point Prob

0 0.0000 0.0000 0.0000
1 0.0000 0.0000 Prob= 0.3 0.0000
2 0.0000 0.0000 Trials= 100 0.0000
3 0.0000 0.0000 0.0000
4 0.0000 0.0000 0.0000
5 0.0000 0.0000 Mean= 30 0.0000
6 0.0000 0.0000 Variance= 21 0.0000
7 0.0000 0.0000 std= 4.6 0.0000
8 0.0000 0.0000 0.0000
9 0.0000 0.0000 0.0000
10 0.0000 0.0000 0.0000
11 0.0000 0.0000 0.0000
12 0.0000 0.0000 0.0000
13 0.0000 0.0001 0.0001
14 0.0001 0.0002 0.0002
15 0.0002 0.0004 0.0004
16 0.0006 0.0010 0.0008
17 0.0012 0.0022 0.0016
18 0.0024 0.0045 0.0028
19 0.0044 0.0089 0.0049
20 0.0076 0.0165 0.0080
21 0.0124 0.0288 0.0127
22 0.0190 0.0479 0.0190
23 0.0277 0.0755 0.0271
24 0.0380 0.1136 0.0369
25 0.0496 0.1631 0.0480
26 0.0613 0.2244 0.0595
27 0.0720 0.2964 0.0703
28 0.0804 0.3768 0.0791
29 0.0856 0.4623 0.0850
30 0.0868 0.5491 0.0871
31 0.0840 0.6331 0.0850
32 0.0776 0.7107 0.0791
33 0.0685 0.7793 0.0703
34 0.0579 0.8371 0.0595
35 0.0468 0.8839 0.0480
36 0.0362 0.9201 0.0369
37 0.0268 0.9470 0.0271
38 0.0191 0.9660 0.0190
39 0.0130 0.9790 0.0127
40 0.0085 0.9875 0.0080
41 0.0053 0.9928 0.0049
42 0.0032 0.9960 0.0028
43 0.0019 0.9979 0.0016
44 0.0010 0.9989 0.0008
45 0.0005 0.9995 0.0004
46 0.0003 0.9997 0.0002
47 0.0001 0.9999 0.0001
48 0.0001 0.9999 0.0000
49 0.0000 1.0000 0.0000
50 0.0000 1.0000 0.0000
51 0.0000 1.0000 0.0000
52 0.0000 1.0000 0.0000
53 0.0000 1.0000 0.0000
54 0.0000 1.0000 0.0000
55 0.0000 1.0000 0.0000
56 0.0000 1.0000 0.0000
57 0.0000 1.0000 0.0000
58 0.0000 1.0000 0.0000
59 0.0000 1.0000 0.0000
60 0.0000 1.0000 0.0000
61 0.0000 1.0000 0.0000
62 0.0000 1.0000 0.0000
63 0.0000 1.0000 0.0000
64 0.0000 1.0000 0.0000
65 0.0000 1.0000 0.0000
66 0.0000 1.0000 0.0000
67 0.0000 1.0000 0.0000
68 0.0000 1.0000 0.0000
69 0.0000 1.0000 0.0000
70 0.0000 1.0000 0.0000
71 0.0000 1.0000 0.0000
72 0.0000 1.0000 0.0000
73 0.0000 1.0000 0.0000
74 0.0000 1.0000 0.0000
75 0.0000 1.0000 0.0000
76 0.0000 1.0000 0.0000
77 0.0000 1.0000 0.0000
78 0.0000 1.0000 0.0000
79 0.0000 1.0000 0.0000
80 0.0000 1.0000 0.0000
81 0.0000 1.0000 0.0000
82 0.0000 1.0000 0.0000
83 0.0000 1.0000 0.0000
84 0.0000 1.0000 0.0000
85 0.0000 1.0000 0.0000
86 0.0000 1.0000 0.0000
87 0.0000 1.0000 0.0000
88 0.0000 1.0000 0.0000
 89 0.0000 1.0000 0.0000
90 0.0000 1.0000 0.0000
91 0.0000 1.0000 0.0000
92 0.0000 1.0000 0.0000
93 0.0000 1.0000 0.0000
94 0.0000 1.0000 0.0000
95 0.0000 1.0000 0.0000
96 0.0000 1.0000 0.0000
97 0.0000 1.0000 0.0000
98 0.0000 1.0000 0.0000
99 0.0000 1.0000 0.0000
100 0.0000 1.0000 0.0000
mal Distribition

Cumulative Prob
0.0000
0.0000
0.0000
0.0000 Binomial Distribution
0.0000 1.2000

0.0000 1.0000
0.0000
0.8000
0.0000

Probability
Point Prob
0.0000 0.6000
Cumulative Prob
0.0000 0.4000
0.0000
0.2000
0.0000
0.0000 0.0000
1 7 13 19 25 31 37 43 49 55 61 67 73 79 85 91 97
0.0001
X
0.0002
0.0005
0.0011
0.0023
0.0044 Binomial Distribution (n=100, P=0.3)
0.0082
0.1000
0.0145
0.0248 0.0900

0.0404 0.0800
0.0633 0.0700
0.0952
0.0600
0.1376
Probability

0.0500
0.1914
0.2563 0.0400
0.3313 0.0300
0.4136 0.0200
0.5000
0.0100
0.5864
0.6687 0.0000
1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 85 89 93 97 101
0.7437 X
0.8086
0.8624
0.9048
0.9367
0.9596
0.9752
0.9855
0.9918
0.9956
0.9977
0.9989
0.9995
0.9998
0.9999
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
ution Normal Distribution
1.2000

1.0000

0.8000

Probability
Point Prob
0.6000 Point Prob
Cumulative Prob
Cumulative Prob
0.4000

0.2000

9 85 91 97 0.0000
1 7 13 19 25 31 37 43 49 55 61 67 73 79 85 91 97
X

P=0.3) Binomial vs Normal Distribution

(n=100, P=0.3)
0.1000
0.0900
0.0800
0.0700
0.0600
Pobability

0.0500
0.0400
0.0300
0.0200
0.0100
0.0000
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76
65 69 73 77 81 85 89 93 97 101 X

Binomial Normal
n

Point Prob
Cumulative Prob

91 97

Distribution
.3)

52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100

mal
 Poisson Distribution Normal Distribition
Point Prob with increasing means
Means
2.5 3 3.5 4 4.5 Point Prob
X Mean=2.5 Mean=3 Mean=3.5 Mean=4 Mean=4.5
0 0.0821 0.0498 0.0302 0.0183 0.0111 0.0386
1 0.2052 0.1494 0.1057 0.0733 0.0500 0.0581
2 0.2565 0.2240 0.1850 0.1465 0.1125 0.0799
3 0.2138 0.2240 0.2158 0.1954 0.1687 0.1003
4 0.1336 0.1680 0.1888 0.1954 0.1898 0.1149
5 0.0668 0.1008 0.1322 0.1563 0.1708 0.1203
6 0.0278 0.0504 0.0771 0.1042 0.1281 0.1149
7 0.0099 0.0216 0.0385 0.0595 0.0824 0.1003
8 0.0031 0.0081 0.0169 0.0298 0.0463 0.0799
9 0.0009 0.0027 0.0066 0.0132 0.0232 0.0581
10 0.0002 0.0008 0.0023 0.0053 0.0104 0.0386
11 0.0000 0.0002 0.0007 0.0019 0.0043 0.0234
12 0.0000 0.0001 0.0002 0.0006 0.0016 0.0130
13 0.0000 0.0000 0.0001 0.0002 0.0006 0.0066
14 0.0000 0.0000 0.0000 0.0001 0.0002 0.0030
15 0.0000 0.0000 0.0000 0.0000 0.0001 0.0013
16 0.0000 0.0000 0.0000 0.0000 0.0000 0.0005
17 0.0000 0.0000 0.0000 0.0000 0.0000 0.0002
18 0.0000 0.0000 0.0000 0.0000 0.0000 0.0001
19 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
20 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
21 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
22 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
23 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
24 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
25 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
26 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
27 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
28 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
29 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
30 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000

Poisson Distribution: Cumulative Probabilty Cumulative Probabilty

Means
X 2.5 3 3.5 4 4.5 5
 0 0.0821 0.0498 0.0302 0.0183 0.0111 0.0658
1 0.2873 0.1991 0.1359 0.0916 0.0611 0.1139
2 0.5438 0.4232 0.3208 0.2381 0.1736 0.1829
3 0.7576 0.6472 0.5366 0.4335 0.3423 0.2732
4 0.8912 0.8153 0.7254 0.6288 0.5321 0.3815
5 0.9580 0.9161 0.8576 0.7851 0.7029 0.5000
6 0.9858 0.9665 0.9347 0.8893 0.8311 0.6185
7 0.9958 0.9881 0.9733 0.9489 0.9134 0.7268
8 0.9989 0.9962 0.9901 0.9786 0.9597 0.8171
9 0.9997 0.9989 0.9967 0.9919 0.9829 0.8861
10 0.9999 0.9997 0.9990 0.9972 0.9933 0.9342
11 1.0000 0.9999 0.9997 0.9991 0.9976 0.9648
12 1.0000 1.0000 0.9999 0.9997 0.9992 0.9826
13 1.0000 1.0000 1.0000 0.9999 0.9997 0.9921
14 1.0000 1.0000 1.0000 1.0000 0.9999 0.9967
15 1.0000 1.0000 1.0000 1.0000 1.0000 0.9987
16 1.0000 1.0000 1.0000 1.0000 1.0000 0.9995
17 1.0000 1.0000 1.0000 1.0000 1.0000 0.9999
18 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
19 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
20 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
21 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
22 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
23 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
24 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
25 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
26 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
27 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
28 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
29 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
30 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
 mal Distribition

Poisson Probability Distribution Approaches

the Mean Increases: Norm M
0.3000

0.2500

0.2000

Probability
0.1500

0.1000

0.0500

0.0000
Mean= 5.0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Variance= 11.0 X
Std Dev= 3.3
Mean=2.5 Mean=3 Mea
Mean=4 Mean=4.5 Norm

Answers
2.
Select a set of random numbers. In this example 30 discrete numbers were chose
of random numbers. Then the point and cummulative probility distributions wer

The Poisson Probability and Cummulative Distributions were computed separatel

the normaldistribution.

The distributions were plotted on separate line graphs with the various mean val
of the Posisson distribution increases, it tends towards the normal distribution.
.

mulative Probabilty
 Cummulative Poisson Probability Distribution Approa
tribution as the Mean Increases: Norm Me
1.2000

1.0000

0.8000

Probability
0.6000

0.4000

0.2000

0.0000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Mean=2.5 Mean=3 Mean=3.5

Mean=4 Mean=4.5 Norm Dist Mea
Distribution Approaches Normal Distribution as X
Mean Increases: Norm Mean = 5 0
1
2
3
4
5
6
7
8
9
10
11
7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 12
X 13
14
ean=2.5 Mean=3 Mean=3.5 15
ean=4 Mean=4.5 Norm Dist Mean=5
16
17
18
19
30 discrete numbers were chosen. The mean and standard deviation was taken 20
ulative probility distributions were computed separately.
21
butions were computed separately with the mean increasing towards the mean of 22
23
graphs with the various mean values. From the graphs it is clear that as the mean 24
wards the normal distribution. 25
26
27
28
29
30
31
32
33
34
35
36
37
 38
39
ability Distribution Approaches Normal Dis- 40
Mean Increases: Norm Mean = 5 41
42
43
44
45
46
47
48
49
50
51
52
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 53
X 54
55
Mean=3 Mean=3.5 56
Mean=4.5 Norm Dist Mean=5 57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
 81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
Binomial Distribution Normal Distribition

Point Prob Cumulative Prob Point Prob Cumulative Prob

0.0000 0.0000 0.0000 0.0000
0.0000 0.0000 Prob= 0.3 0.0000 0.0000
0.0000 0.0000 Trials= 100 0.0000 0.0000
0.0000 0.0000 0.0000 0.0000
0.0000 0.0000 0.0000 0.0000
0.0000 0.0000 Mean= 30 0.0000 0.0000
0.0000 0.0000 Variance= 21 0.0000 0.0000
0.0000 0.0000 std= 4.6 0.0000 0.0000
0.0000 0.0000 0.0000 0.0000
0.0000 0.0000 0.0000 0.0000
0.0000 0.0000 0.0000 0.0000
0.0000 0.0000 0.0000 0.0000
0.0000 0.0000 0.0000 0.0000
0.0000 0.0001 0.0001 0.0001
0.0001 0.0002 0.0002 0.0002
0.0002 0.0004 0.0004 0.0005
0.0006 0.0010 0.0008 0.0011
0.0012 0.0022 0.0016 0.0023
0.0024 0.0045 0.0028 0.0044
0.0044 0.0089 0.0049 0.0082
0.0076 0.0165 0.0080 0.0145
0.0124 0.0288 0.0127 0.0248
0.0190 0.0479 0.0190 0.0404
0.0277 0.0755 0.0271 0.0633
0.0380 0.1136 0.0369 0.0952
0.0496 0.1631 0.0480 0.1376
0.0613 0.2244 0.0595 0.1914
0.0720 0.2964 0.0703 0.2563
0.0804 0.3768 0.0791 0.3313
0.0856 0.4623 0.0850 0.4136
0.0868 0.5491 0.0871 0.5000
0.0840 0.6331 0.0850 0.5864
0.0776 0.7107 0.0791 0.6687
0.0685 0.7793 0.0703 0.7437
0.0579 0.8371 0.0595 0.8086
0.0468 0.8839 0.0480 0.8624
0.0362 0.9201 0.0369 0.9048
0.0268 0.9470 0.0271 0.9367
0.0191 0.9660 0.0190 0.9596
0.0130 0.9790 0.0127 0.9752
0.0085 0.9875 0.0080 0.9855
0.0053 0.9928 0.0049 0.9918
0.0032 0.9960 0.0028 0.9956
0.0019 0.9979 0.0016 0.9977
0.0010 0.9989 0.0008 0.9989
0.0005 0.9995 0.0004 0.9995
0.0003 0.9997 0.0002 0.9998
0.0001 0.9999 0.0001 0.9999
0.0001 0.9999 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
0.0000 1.0000 0.0000 1.0000
mulative Prob

Binomial Distribution
1.2000

1.0000

0.8000
Probability

0.6000 Point Prob

Cumulative Prob
0.4000

0.2000

0.0000
1 7 13 19 25 31 37 43 49 55 61 67 73 79 85 91 97
X

Binomial Distribution (n=100, P=0.3)

0.1000

0.0900

0.0800

0.0700

0.0600
Probability

0.0500

0.0400

0.0300

0.0200

0.0100

0.0000
1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 85 89 93 97 101

X
 Normal Distribution
1.2000

1.0000

0.8000
Probability

Point Prob
0.6000 Point Prob
Cumulative Prob
Cumulative Prob
0.4000

0.2000

0.0000
1 7 13 19 25 31 37 43 49 55 61 67 73 79 85 91 97
X

Binomial vs Normal Distribution

(n=100, P=0.3)
0.1000
0.0900
0.0800
0.0700
0.0600
Pobability

0.0500
0.0400
0.0300
0.0200
0.0100
0.0000
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94
85 89 93 97 101 X

Binomial Normal
oint Prob
umulative Prob

67 70 73 76 79 82 85 88 91 94 97 100
Answer 3a

Answer 3 b
Mean= 40
X= 50 Each client nets $3.5, for a daily total profit of $140. Th
exponential 2.718281828 paper that costs which costs $200. By how much does
profit by $100?

100=3.5∗(𝑋−40)−200
100+200=3.5∗(𝑋−40)
P(50,40) (Manual) 0.017707018 300/3.5=𝑋−40
P(50,40) (Excel) 0.017707018 85.71 = ( X-40) which is rounded to an increase of 86 pe

OR
Answer 3b
240=3.5∗𝑋−200
240+200=3.5∗𝑋
Each Client Net $3.50 440/3.5=𝑋
# of Clients per day 40 125.71 = X. Rounded to 126 persons
That means the increase would be equal to 126 minus
Daily Profit $140
Cost of Ad $200
What is the chance that tomorrow, with the new avera
clients will remain at 40?
If Profit Increase by $100, the Probability will be approximately zero.
new Profit will be = $240

Mean= 40
X= 126
exponential 2.718

P(126,40)(manual) 0
P(126,40) (Excel) 1.296084E-27
 aily total profit of $140. The owner plans to run a single ad in the local weekly
$200. By how much does the average need to increase to increase daily total

ded to an increase of 86 persons on average

OR

persons
uld be equal to 126 minus 40 equal 86 persons

morrow, with the new average visits per hour, the actual number of daily

mately zero.