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Chapter 5

The document discusses discrete and continuous random variables and their probability distributions. It provides examples of discrete and continuous random variables and explains how to construct a probability distribution for a discrete random variable from frequency data. The document also shows how to calculate probabilities from a given probability distribution and identifies the key characteristics of a valid probability distribution. Examples are provided to illustrate finding probabilities and determining if a table represents a valid probability distribution.

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0% found this document useful (0 votes)
54 views119 pages

Chapter 5

The document discusses discrete and continuous random variables and their probability distributions. It provides examples of discrete and continuous random variables and explains how to construct a probability distribution for a discrete random variable from frequency data. The document also shows how to calculate probabilities from a given probability distribution and identifies the key characteristics of a valid probability distribution. Examples are provided to illustrate finding probabilities and determining if a table represents a valid probability distribution.

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CHAPTER 5

DISCRETE RANDOM
VARIABLES AND THEIR
PROBABILITY
DISTRIBUTIONS

Prem Mann, Introductory Statistics, 9/E


Copyright © 2015 John Wiley & Sons. All rights reserved.
Opening Example
Now that you know a little about probability, do you feel lucky enough to play the
lottery? If you have $20 to spend on lunch today, are you willing to spend it all on
four $5 lottery tickets to increase your chance of winning? Do you think you will
profit, on average, if you continue buying lottery tickets over time? Can lottery
players beat the state, on average? Not a chance! (See Case Study 5–1 for
answers.)

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5.1 Random Variables
Discrete Random Variable
Continuous Random Variable

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Table 5.1 Frequency and Relative Frequency Distributions of the
Number of Vehicles Owned by Families

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Random Variables
● Definition
● A random variable is a variable whose value is determined
by the outcome of a random experiment.

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Discrete Random Variable
● Definition
● A random variable that assumes countable values is called a
discrete random variable.

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Examples of Discrete Random Variables
1. The number of cars sold at a dealership during a given
month
2. The number of houses in a certain block
3. The number of fish caught on a fishing trip
4. The number of complaints received at the office of an
airline on a given day
5. The number of customers who visit a bank during any
given hour
6. The number of heads obtained in three tosses of a coin

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Continuous Random Variable
● Definition
● A random variable that can assume any value contained in
one or more intervals is called a continuous random
variable.

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Continuous Random Variable

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Examples of Continuous Random Variables
1. The length of a room
2. The time taken to commute from home to work
3. The amount of milk in a gallon (note that we do not
expect “a gallon” to contain exactly one gallon of milk but
either slightly more or slightly less than one gallon)
4. The weight of a letter
5. The price of a house

Note that money is often treated as a continuous random


variable, specifically when there are a large number of unique
values.

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5.2 Probability Distribution of a Discrete Random Variable

● Definition
● The probability distribution of a discrete random
variable lists all the possible values that the random
variable can assume and their corresponding probabilities.

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Example 5-1
● Recall the frequency and relative frequency distributions of the
number of vehicles owned by families given in Table 5.1. That
table is reproduced below as Table 5.2. Let x be the number of
vehicles owned by a randomly selected family. Write the
probability distribution of x and make a histogram for this
probability distribution.

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Table 5.2 Frequency and Relative Frequency Distributions of the
Number of Vehicles Owned by Families

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Example 5-1: Solution
Table 5.3 Probability Distribution of the Number of Vehicles
Owned by Families

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Example 5-1: Solution
Figure 5.1 Histogram for the Probability Distribution of Table 5.3

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Two Characteristics of a Probability Distribution
● The probability distribution of a discrete random variable
possesses the following two characteristics.

1. 0 ≤ P(x) ≤ 1 for each value of x


2. Σ P(x) = 1

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Example 5-2
● Using the probability distribution listed in Table 5.3 of Example
5–1, find the following probabilities:
● (a) The probability that a randomly selected family owns two
vehicles
● (b) The probability that a randomly selected family owns at
least two vehicles
● (c) The probability that a randomly selected family owns at
most one vehicle
● (d) The probability that a randomly selected family owns three
or more vehicles

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Example 5-2: Solution

P(owns 2 vehicles) = .425


P(owns at least 2 vehicles) =
p(2)+p(3)+p(4)
= .425+.245+.080
= .75
P(owns at most one vehicle) =p(0)+p(1)
= .015+.235 = .25
P(owns 3 or more vehicle) = p(3)+p(4)
= .245+.080 = .325
Example 5-3
● Each of the following tables lists certain values of x and their
probabilities. Determine whether or not each table represents
a valid probability distribution.

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Example 5-3: Solution

(a) No, since the sum of all probabilities is not equal to 1.0.
(b) Yes.
(c) No, since one of the probabilities is negative.

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Example 5-4
● The following table lists the probability distribution of the
number of breakdowns per week for a machine based on past
data.

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Example 5-4
Find the probability that the number of breakdowns for this
machine during a given week is
(a) exactly 2
(b) 0 to 2
(c) more than 1
(d) at most 1

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Example 5-4: Solution
Table 5.4 Probability Distribution of the Number of Breakdowns
● Let x denote the number of breakdowns for this machine
during a given week. Table 5.4 lists the probability distribution
of x.

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Example 5-4: Solution
Using Table 5.4,
(a) P(exactly 2 breakdowns) = P(2) = .35
(b) P(0 to 2 breakdowns) = P(0 ≤ x ≤ 2) = P(0 or 1 or 2)
= P(0) + P(1) + P(2)
= .15 + .20 + .35 = .70
(c) P(more than 1 breakdown) = P(x > 1) = P(2 or 3)
= P(2) + P(3)
= .35 +.30 = .65
(d) P(at most 1 breakdown) = P(x ≤ 1) = P(0 or 1)
= P(0) + P(1)
= .15 + .20 = .35

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Example 5-5
● According to a survey, 60% of all students at a large
university suffer from math anxiety. Two students are
randomly selected from this university. Let x denote the
number of students in this sample who suffer from math
anxiety. Construct the probability distribution of x.

● A. no student has anxiety


● B. at least one student has anxiety
● C. both student have anxiety

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Example 5-5: Solution
Figure 5.2 Tree Diagram

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Example 5-5: Solution
● Let us define the following two events:

● N = the student selected does not suffer from math


● anxiety
M = the student selected suffers from math anxiety

P(0) = P(NN) = .16



P(1) = P(NM or MN) = P(NM) + P(MN)
● = .24 + .24 = .48

● P(2) = P(MM) = .36

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Table 5.5 Probability Distribution of the Number of Students with
Math Anxiety

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5.3 Mean and Standard Deviation of a Discrete Random
Variable
The mean of a discrete variable x is the value that is
expected to occur per repetition, on average, if an experiment
is repeated a large number of times. It is denoted by µ and
calculated as
µ = Σ x P(x)

The mean of a discrete random variable x is also called its


expected value and is denoted by E(x); that is,
E(x) = Σ x P(x)

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Example 5-6
● The following table lists the number of breakdowns per week
and their probabilities for a machine based on past data.

● Find the mean number of breakdowns per week for this


machine.

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Example 5-6: Solution
Table 5.6 Calculating the Mean for the Probability Distribution of
Breakdowns

The mean is µ = Σx P(x) = 1.80

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Standard Deviation of a Discrete Random Variable
● The standard deviation of a discrete random variable x
measures the spread of its probability distribution and is
computed as

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Case Study 5-1 All State Lottery

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Example 5-7
● Baier’s Electronics manufactures computer parts that are
supplied to many computer companies. Despite the fact that
two quality control inspectors at Baier’s Electronics check
every part for defects before it is shipped to another
company, a few defective parts do pass through these
inspections undetected. Let x denote the number of defective
computer parts in a shipment of 400. The following table
gives the probability distribution of x.

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Example 5-7

Compute the standard deviation of x.

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Example 5-7: Solution
Table 5.7 Computations to Find the Standard Deviation

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Example 5-7: Solution

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Example 5-8
● Loraine Corporation is planning to market a new makeup
product. According to the analysis made by the financial
department of the company, it will earn an annual profit of
$4.5 million if this product has high sales and an annual profit
of $ 1.2 million if the sales are mediocre, and it will lose $2.3
million a year if the sales are low. The probabilities of these
three scenarios are .32, .51 and .17 respectively.

(a) Let x be the profits (in millions of dollars) earned per


annum from this product by the company. Write the
probability distribution of x.
(b) Calculate the mean and the standard deviation of x.

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Example 5-8: Solution
(a) The table below lists the probability distribution of x.
Note that because x denotes profits earned by the
company, the loss is written as a negative profit in the
table.

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Table 5.8 Computations to Find the Mean and Standard Deviation

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Example 5-8: Solution
(b) Table 5.8 shows all the calculations needed for the
computation of the mean and standard deviations of x.

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Interpretation of the Standard Deviation
The standard deviation of a discrete random variable can
be interpreted or used the same way as the standard
deviation of a data set in Section 3.4 of Chapter 3.

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5.4 The Binomial Probability Distribution

The Binomial Experiment


The Binomial Probability Distribution and Binomial Formula
Using the Table of Binomial Probabilities
Probability of Success and the Shape of the Binomial
Distribution
Mean and Standard Deviation of the Binomial Distribution

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The Binomial Experiment
Conditions of a Binomial Experiment

A binomial experiment must satisfy the following four


conditions.
1. There are n identical trials.
2. Each trail has only two possible outcomes (or events).
3. The probabilities of the two outcomes (or events)
remain constant for each trial.
4. The trials are independent.

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Example 5-9
● Consider the experiment consisting of 10 tosses of a coin.
Determine whether or not it is a binomial experiment.

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Example 5-9: Solution
● 1. There are a total of 10 trials (tosses), and they are all
identical. Here, n=10.
● 2. Each trial (toss) has only two possible outcomes: a head
and a tail.
● 3. The probability of obtaining a head (a success) is ½ and
that of a tail (a failure) is ½ for any toss. That is,
● p = P(H) = ½ and q = P(T) = ½
● 4. The trials (tosses) are independent.

● Consequently, the experiment consisting of 10 tosses is a


binomial experiment.

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Example 5-10
● (a) Seventy five percent of students at a college with a large
student population use Insta- gram. A sample of five students
from this college is selected, and these students are asked
whether or not they use Instagram. Is this experiment a
binomial experiment?
● (b) In a group of 12 students at a college, 9 use Instagram.
Five students are selected from this group of 12 and are
asked whether or not they use Instagram. Is this experiment
a binomial experiment?

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Example 5-10: Solution
● (a) We check whether all four conditions of the binomial
probability distribution are satisfied.
● 1. This example consists of five identical trials.
● 2. Each trial has two outcomes: a student uses Instagram or a
student does not use Instagram.
● 3. The probability p that a student uses Instagram is .75. The
probability q that a student does not use Instagram is .25.
● 4. Each trial (student) is independent.

● Because all four conditions of a binomial experiment are


satisfied, this is an example of a binomial experiment.

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Example 5-10: Solution
● (b)
● 1. This example consists of five identical trials.
● 2. Each trial has two outcomes: a student uses Instagram or
a student does not use Instagram.
● 3. The probability p is that a student uses Instagram. The
probability q is that a student does not use Instagram. They
do not remain constant for each selection. The probability of
each outcome changes with each selection depending on
what happened in the previous selections.

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Example 5-10: Solution
● (b)
● 4. Because p and q do not remain constant for each
selection, the trials are not independent.

● Given that the third and fourth conditions of a binomial


experiment are not satisfied, this is not an example of a
binomial experiment.

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The Binomial Probability Distribution and Binomial Formula
● For a binomial experiment, the probability of exactly x
successes in n trials is given by the binomial formula

● where
● n = total number of trials
● p = probability of success
● q = 1 – p = probability of failure
● x = number of successes in n trials
● n - x = number of failures in n trials

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Example 5-11
● Seventy five percent of students at a college with a large
student population use the social media site Instagram. Three
students are randomly selected from this college. What is the
probability that exactly two of these three students use
Instagram?

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Example 5-11: Solution
Here, we are given that:
n = 3, x = 2, and p = .75
The probability of two successes is denoted by P(x=2) or P(2).

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Example 5-12
● At the Express House Delivery Service, providing high-quality
service to customers is the top priority of the management.
The company guarantees a refund of all charges if a package
it is delivering does not arrive at its destination by the
specified time. It is known from past data that despite all
efforts, 2% of the packages mailed through this company do
not arrive at their destinations within the specified time.
Suppose a corporation mails 10 packages through Express
House Delivery Service on a certain day.

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Example 5-12

(a) Find the probability that exactly one of these 10 packages


will not arrive at its destination within the specified time.

(b) Find the probability that at most one of these 10 packages


will not arrive at its destination within the specified time.

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Example 5-12: Solution
n = total number of packages mailed = 10
p = P(success) = .02
q = P(failure) = 1 – .02 = .98

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Example 5-12: Solution

● x = number of successes = 1
n – x = number of failures = 10 – 1 = 9
(a)

● Thus, there is a .1667 probability that exactly one of the 10


packages mailed will not arrive at its destination within the
specified time.

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Example 5-12: Solution

(b) At most one of the ten packages is given by the sum of


the probabilities of x = 0 and x = 1

Thus, the probability that at most one of the 10 packages


mailed will not arrive at its destination within the specified
time is .9838.

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Example 5-13
● According to a survey, 33% of American employees do not
plan to change their jobs in the near future. Let x denote the
number of employees in a random sample of three American
employees who do not plan to change their jobs in the near
future. Write the probability distribution of x and draw a
histogram for this probability distribution.

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Example 5-13: Solution
n = total employees in the sample = 3
p = P(an employee does not plan to change his/her job in
the near future) = .33
q = P(an employee does plan to change his/her job in the
near future)
= 1 - .33 = .67

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Example 5-13: Solution

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Example 5-13: Solution
Table 5.9 Probability Distribution of x

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Figure 5.3 Histogram for the Probability Distribution of Table 5.9

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Using the Table of Binomial Probabilities

● The probabilities for a binomial experiment can also be read


from Table I in Appendix B, the table of binomial
probabilities.
● This lists the probabilities of x for n = 1 to n = 25.
● This lists the probabilities of x for selected values of p.

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Example 5-14
According to a survey, 30% of college students said that they
spend too much time on Facebook. (The remaining 70% said
that they do not spend too much time on Facebook or had no
opinion.) Suppose this result holds true for the current
population of all college students. A random sample of six
college students is selected. Using Table I of Appendix B,
answer the following.

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Example 5-14
(a) Find the probability that exactly three of these six
college students will say that they spend too much time on
Facebook.
(b) Find the probability that at most two of these six college
students will say that they spend too much time on
Facebook.
(c) Find the probability that at least three of these six
college students will say that they spend too much time on
Facebook.

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Example 5-14
(d) Find the probability that one to three of these six college
students will say that they spend too much time on
Facebook.
(e) Let x be the number in a random sample of six college
students who will say that they spend too much time on
Facebook. Write the probability distribution of x and draw a
histogram for this probability distribution.

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Table 5.10 Determining P(x = 3) for n = 6 and p = .30

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Table 5.11 Portion of Table I for n = 6 and p= .30

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Example 5-14: Solution
(a) P(3) = .1852

(b) P(at most 2) = P(0 or 1 or 2)


= P(0) + P(1) + P(2)
= .1176 + .3025 + .3241 = .7442

(c) P(at least 3) = P(3 or 4 or 5 or 6)


= P(3) + P(4) + P(5) + P(6)
= .1852 + .0595 + .0102 + .0007
= .2556

(d) P(1 to 3) = P(1) + P(2) + P(3)


= .3025 + .3241 + .1852 = .8118

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Example 5-14: Solution
Table 5.12 Probability Distribution of x for n = 6 and p= .30
(e)

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Example 5-14: Solution
Figure 5.4 Histogram for the Probability Distribution of x
(e)

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Probability of Success and the Shape of the Binomial Distribution

For any number of trials n:

1. The binomial probability distribution is symmetric if p =.50.

2. The binomial probability distribution is skewed to the right


if p is less than .50.

3. The binomial probability distribution is skewed to the left if


p is greater than .50.

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Table 5.13 Probability Distribution of x for n = 4 and p= .50

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Figure 5.5 Histogram for the Probability Distribution of Table 5.13

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Table 5.14 Probability Distribution of x for n = 4 and p= .30

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Figure 5.6 Histogram for the Probability Distribution of Table 5.14

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Table 5.15 Probability Distribution of x for n = 4 and p= .80

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Figure 5.7 Histogram for the Probability Distribution of Table 5.15

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Mean and Standard Deviation of the Binomial Distribution
The mean and standard deviation of a binomial
distribution are, respectively,

where n is the total number of trials, p is the probability of


success, and q is the probability of failure.

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Example 5-15
According to a Pew Research Center survey released on May
12, 2015, 22.8% of U.S. adults do not have a religious
affiliation (Time, May 25, 2015). Assume that this result is
true for the current population of U.S. adults. A sample of
50 U.S. adults is randomly selected. Let x be the number of
adults in this sample who do not have a religious affiliation.
Find the mean and standard deviation of the probability
distribution of x.

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Example 5-15: Solution
n = 50, p = .228, and q = .772
Using the formulas for the mean and standard deviation of
the binomial distribution,

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5.5. The Hypergeometric Probability Distribution
Let
■ N = total number of elements in the population
■ r = number of successes in the population
■ N – r = number of failures in the population
■ n = number of trials (sample size)
■ x = number of successes in n trials
■ n – x = number of failures in n trials

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The Hypergeometric Probability Distribution

The probability of x successes in n trials is given by

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Example 5-16
Brown Manufacturing makes auto parts that are sold to auto
dealers. Last week the company shipped 25 auto parts to a
dealer. Later, it found out that 5 of those parts were defective.
By the time the company manager contacted the dealer, 4
auto parts from that shipment had already been sold. What is
the probability that 3 of those 4 parts were good parts and 1
was defective?

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Example 5-16: Solution
N = 25, r = 20, N – r = 5, n = 4, x = 3, n – x = 1

Thus, the probability that three of the four parts sold are
good and one is defective is .4506.

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Example 5-17
Dawn Corporation has 12 employees who hold managerial
positions. Of them, 7 are female and 5 are male. The company
is planning to send 3 of these 12 managers to a conference. If
3 managers are randomly selected out of 12,
(a) Find the probability that all 3 of them are female
(b) Find the probability that at most 1 of them is a female

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Example 5-17: Solution
(a)
N = 12, r = 7, N – r = 5, n = 3, x = 3, n – x = 0

Thus, the probability that all 3 of managers selected are


female is .1591.

Prem Mann, Introductory Statistics, 9/E


Copyright © 2015 John Wiley & Sons. All rights reserved.
Example 5-17: Solution
(b)
N = 12, r = 7, N – r = 5, n = 3, x = 0 and 1, n – x = 3

Thus, the probability that at most 1 of 3 managers selected


is female is .3637.

Prem Mann, Introductory Statistics, 9/E


Copyright © 2015 John Wiley & Sons. All rights reserved.
5.6 The Poisson Probability Distribution
Using the Table of Poisson probabilities
Mean and Standard Deviation of the Poisson Probability
Distribution

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The Poisson Probability Distribution
Conditions to Apply the Poisson Probability Distribution

The following three conditions must be satisfied to apply the


Poisson probability distribution.
1. x is a discrete random variable.
2. The occurrences are random.
3. The occurrences are independent.

Prem Mann, Introductory Statistics, 9/E


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Examples of Poisson Probability Distribution
1. The number of accidents that occur on a given highway
during a 1-week period.

2. The number of customers entering a grocery store during a


1–hour interval.

3. The number of television sets sold at a department store


during a given week.

Prem Mann, Introductory Statistics, 9/E


Copyright © 2015 John Wiley & Sons. All rights reserved.
The Poisson Probability Distribution
Poisson Probability Distribution Formula

According to the Poisson probability distribution, the


probability of x occurrences in an interval is

where λ (pronounced lambda) is the mean number of


occurrences in that interval and the value of e is
approximately 2.71828.

Prem Mann, Introductory Statistics, 9/E


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Example 5-18
On average, a household receives 9.5 telemarketing phone
calls per week. Using the Poisson distribution formula, find
the probability that a randomly selected household receives
exactly 6 telemarketing phone calls during a given week.

Prem Mann, Introductory Statistics, 9/E


Copyright © 2015 John Wiley & Sons. All rights reserved.
Example 5-18: Solution

Prem Mann, Introductory Statistics, 9/E


Copyright © 2015 John Wiley & Sons. All rights reserved.
Example 5-19
A washing machine in a laundromat breaks down an average
of three times per month. Using the Poisson probability
distribution formula, find the probability that during the next
month this machine will have

(a) exactly two breakdowns


(b) at most one breakdown

Prem Mann, Introductory Statistics, 9/E


Copyright © 2015 John Wiley & Sons. All rights reserved.
Example 5-19: Solution

Prem Mann, Introductory Statistics, 9/E


Copyright © 2015 John Wiley & Sons. All rights reserved.
Example 5-20
Cynthia’s Mail Order Company provides free examination of
its products for 7 days. If not completely satisfied, a
customer can return the product within that period and get a
full refund. According to past records of the company, an
average of 2 of every 10 products sold by this company are
returned for a refund. Using the Poisson probability
distribution formula, find the probability that exactly 6 of the
40 products sold by this company on a given day will be
returned for a refund.

Prem Mann, Introductory Statistics, 9/E


Copyright © 2015 John Wiley & Sons. All rights reserved.
Example 5-20: Solution
λ = 8, x = 6

Thus, the probability is .1221 that exactly 6 products out


of 40 sold on a given day will be returned.

Prem Mann, Introductory Statistics, 9/E


Copyright © 2015 John Wiley & Sons. All rights reserved.
Using the Table of Poisson Probabilities

The probabilities for a Poisson distribution can also be read


from Table III in appendix B, the table of Poisson
probabilities.

Prem Mann, Introductory Statistics, 9/E


Copyright © 2015 John Wiley & Sons. All rights reserved.
Example 5-21
On average, two new accounts are opened per day at an
Imperial Saving Bank branch. Using Table III of Appendix B,
find the probability that on a given day the number of new
accounts opened at this bank will be
(a) exactly 6 (b) at most 3 (c) at least 7

Prem Mann, Introductory Statistics, 9/E


Copyright © 2015 John Wiley & Sons. All rights reserved.
Table 5.16 Portion of Table III for λ = 2.0

Prem Mann, Introductory Statistics, 9/E


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Example 5-21: Solution
(a) P(6) = .0120

(b) P(at most 3) = P(0) + P(1) + P(2) + P(3)


=.1353 +.2707 + .2707 + .1804 = .8571

(c) P(at least 7) = P(7) + P(8) + P(9)


= .0034 + .0009 + .0002 = .0045

Prem Mann, Introductory Statistics, 9/E


Copyright © 2015 John Wiley & Sons. All rights reserved.
Case Study 5-2 Global Birth and Death Rates

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Copyright © 2015 John Wiley & Sons. All rights reserved.
Example 5-22
An auto salesperson sells an average of .9 car per day. Let
x be the number of cars sold by this salesperson on any
given day. Using the Poisson probability distribution table,
write the probability distribution of x. Draw a graph of the
probability distribution.

Prem Mann, Introductory Statistics, 9/E


Copyright © 2015 John Wiley & Sons. All rights reserved.
Example 5-22: Solution
Table 5.17 Probability Distribution of x for λ = .9

Prem Mann, Introductory Statistics, 9/E


Copyright © 2015 John Wiley & Sons. All rights reserved.
Example 5-22: Solution
Figure 5.8 Histogram for the Probability Distribution of Table 5.17

Prem Mann, Introductory Statistics, 9/E


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Mean and Standard Deviation of the Poisson Probability
Distribution

Prem Mann, Introductory Statistics, 9/E


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Example 5-22 (continued)
An auto salesperson sells an average of .9 car per day. Let x
be the number of cars sold by this salesperson on any given
day. Find the mean, variance, and standard deviation.

Prem Mann, Introductory Statistics, 9/E


Copyright © 2015 John Wiley & Sons. All rights reserved.
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Prem Mann, Introductory Statistics, 9/E


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Prem Mann, Introductory Statistics, 9/E


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Prem Mann, Introductory Statistics, 9/E


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