1.
Poisson Distribution Problem Southwestern Electronics has developed a new calculator that performs a series of functions not yet performed by any other calculator. The marketing department is planning to demonstrate this calculator to a group of potential customers, but is worried about some initial problems, which have resulted in 4 percent of the new calculators developing mathematical inconsistencies. The marketing VP Is planning on randomly selecting a group of calculators for this demonstration and is worried about the chances of selecting a calculator that could start malfunctioning. He believes that whether or not a calculator functions is a Bernoulli process and he is convinced that the probability of malfunction is really about 0.04. a. Assuming that the VP selects exactly 50 calculators to use in the demonstration, and using the Poisson distribution as an approximation of the binomial, what is the chance of getting at least three calculators that malfunction? b. No calculators malfunctioning? Solution n = 50 p = 0.04 = np = 2 = 0.13533 Formula: P(X= ) =
P ( =0) = P ( =1) = P ( =2) = P ( =3) =
= 0.13533 = 0.27066 = 0.27066 = 0.18044
P(
3) = 1 =1 =1
P(
2)
[P ( =0) + P ( =1) + P ( =2)] [0.13533 + 0.27066 +0.27066]
= 0.32335
Answer a.) The chance of getting at least three calculators that malfunction is 32.33% b.) The chance of no calculators malfunctioning is 13.53%
2. Hypothesis Testing (Single Population) Problem General Electric has developed a new bulb whose design specifications call for a light output of 960 lumens compared to an earlier model that produced only 750 lumens. The companys data indicate that the standard deviation of light output for this type of bulb is 18.4 lumens. From a sample of 20 new bulbs, the testing committee found an average light output of 954 lumens per bulb. At a 0.05 significance level, can General Electric conclude that its new bulb is producing the specified 960 lumen output? Solution = 18.4 n = 20 = 954 = 960 = 0.05 = 960
= 960 < 960
= - 1.65
= - 1.45 Answer Do not reject . The new bulb is meeting specifications.
3. Hypothesis Testing (Single Population) Problem BSNL provides telephone services in Coimbatore. According to the companys records the average length of calls placed through the company is 11.44 minutes. The company wants to check if the mean length of the current calls is different from 11.44 minutes. A sample of 150 such calls placed through this company gave a mean length of 12.71 minutes with a standard deviation of 2.65 minutes. Can you conclude that the mean length of all current calls is different from 11.44 minutes? Use = 0.05. Solution s = 2.65 n = 150 = 12.71 = 11.44 = 0.05
= 11.44 11.44 = 1.65
= = 5.87
Answer Reject . It is concluded that the mean length of current calls is different from 11.44 minutes.
4. Hypothesis Testing ( Two populations) Problem A credit-insurance organization has developed a new high-tech method of training new sales personnel. The company sampled 16 employees who were trained the original way and found average daily sales to be $688 and the sample standard deviation was $32.63. They also sampled 11 employees who were trained using the new method and found average daily sales to be $ 706 and the sample standard deviation was $24.84. At alpha = 0.05, can the company conclude that average daily sales have increased under the new plan? Solution n1 = 16 1 = 688 1 = 32.63 = 0.05 n2 = 11 2 = 206 2 = 24.84 n = n1 + n2 = 27
1 - 2 = 0 1 - 2 0
= - 1.708
= =
= 885.64
= = - 1.545
Answer Do not reject . Average daily sales have not increased significantly.