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Decision Science - Assignment

The document discusses probability concepts through examples: 1) It provides a probability table and tree diagram to calculate the probability that a recently departed plane was airline Amira. 2) It discusses the key concepts in linear regression including dependent and independent variables, the regression equation, and interpreting the regression statistics table. 3) It calculates probabilities using the binomial distribution formula for different values of n, p, and x.

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Shilpi Singh
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0% found this document useful (0 votes)
43 views

Decision Science - Assignment

The document discusses probability concepts through examples: 1) It provides a probability table and tree diagram to calculate the probability that a recently departed plane was airline Amira. 2) It discusses the key concepts in linear regression including dependent and independent variables, the regression equation, and interpreting the regression statistics table. 3) It calculates probabilities using the binomial distribution formula for different values of n, p, and x.

Uploaded by

Shilpi Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Ans.

1 1) Probability Table: - Here the prior probabilities show the scheduled flights of
different airlines and conditional probabilities show their on time rates.

Airlines Prior P(Ei) Conditional P(X/Ei) Joint P(X*Ei)


Amira 0.50 0.80 0.50*0.80 = 0.40
Biyas 0.30 0.65 0.30*0.65 = 0.195
Chinar 0.20 0.40 0.20*0.40 = 0.08
P(X) = 0.675

Probability Tree Diagram:-


2) To find the probability of airline Amira:-

Revised Probability:-

Airline Amira = 0.50*0.80/P(X)

= 0.40/0.675

= 0.59

Hence probability is 0.59 that a plane which has just left on was airline ’Amira’.

Ans.2 Part 1 in regression, the variable to be predicted is called the dependent variable and is
designated as y. While the predictor is called the independent variable, or explanatory variable
and is designated as x. In this question the dependent variable is sales of Kahwa (y) . Spending
on Advertisement is an independent variable because Rashmi wants to know the effect of its
spending on dependent variable sales (x). Apart from this number of sales representative and
customer satisfaction ratings are also independent variables.

Part2 Regression Model Equation:-

Adv. Sales
x2 y2 xy
(x) (y)
5512 55328 30382144 3061187584 304967936
8337 56251 69505569 3164175001 468964587
8788 57126 77228944 3263379876 502023288
8828 58739 77933584 3450270121 518547892
9050 66984 81902500 4486856256 606205200
10150 70676 103022500 4995096976 717361400
11236 73206 126247696 5359118436 822542616
12538 80571 157201444 6491686041 1010199198
13161 93168 173211921 8680276224 1226184048
13448 99432 180848704 9886722624 1337161536
∑x = ∑y = ∑xy=
10104 71148 751415770
8 1 ∑x2=1077485006 ∑y2 = 52838769139 1
n = 10

SSxy = ∑xy – (∑x)*(∑y)/n


= 7514157701-101048*711481/10

= 324784492.2

SSxx = ∑x2- (∑x) 2/n


= 1077485006- (101048)2/10

= 56415175.6

b1 = SSxy/ SSxx
= 324784492.2/56415175.6

= 5.757041235

b0 = ∑y/n-b1 *∑x/n
= 711481/10-5.757041235*101048/10

= 12974.34973

Regression Equation: - y= b0+x

y 12974.34973+5.757041235x
Part3)

SUMMARY
OUTPUT

Regression Statistics
0.91810485
Multiple R 1
0.84291651
R Square 8
0.82328108
Adjusted R Square 3
6599.71674
Standard Error 5
Observations 10

ANOVA
Significance
  df SS MS F F
42.9283337
Regression 1 1869797714 1869797714 6 0.000178106
43556261.1
Residual 8 348450088.9 1
Total 9 2218247803      

Coefficien Standard Lower Upper Lower Upper


  ts Error t Stat P-value 95% 95% 95.0% 95.0%
- -
Interce 12974.34 9120.800 1.422501 0.192679 8058.253 34006.95 8058.253 34006.95
pt 973 193 256 649 213 267 213 267
5.757041 0.878673 6.551971 0.000178 3.730817 7.783265 3.730817 7.783265
Adv.(x) 235 086 746 106 466 004 466 004

Part4) Interpretations of Regression Statistics Table:-

Here greater R square value present positive correlation between Advertisement expenses and
sales.
Adjusted R square value is nearly close to 1 which shows positive impact of advertisement on
sales.

Annova Table

Alpha (significance in F) is less than 0.05 which exhibits a significant relationship between sales
and advertisement.

To conclude we can say that there is positive correlation between advertisement expenses and
sales of Kahwa.

Ans.3 a) a) here n = 25, p = 0.75 (75%) q = 1-p = 1-0.75 = 0.25 x =15

As per binomial formula: - P(x) = nCx*px *qn-x

= n! /x! (n - x)! * px * qn-x


= 25C15 (0.75)15(0.25)10

=25/15(25-15)*(0.75)15 * (0.25)10
= 0.041658

b) ) here n = 25, p = 0.75 (75%) q = 1-p = 1-0.75 = 0.25 x =20

As per binomial formula: - P(x) = nCx*px *qn-x

= n! /x! (n - x)! * px * qn-x


= 25C20 (0.75)20(0.25)5

=25/20(25-20)*(0.75)20 * (0.25)5
= 0.164538
Ans.3b a) Probability of getting more than 12000 hits. P(x > 12,000)

Z = x-µ/ σ

Here µ = 10000, σ = 2400, x = 12000

= 12000-10000/2400

= 0.833

Here area for z= 0.833 is 0.2023

So P(x > 12,000) = 0.5000-0.2023

= 0.2977

b) Probability of getting fewer than 9000 hits. P(x < 9,000)

Z = x-µ/ σ

Here µ = 10,000, σ = 2400, x = 9000

= 9000-10000/2400

= -0.4167

Here area for z= -0.4167 is 0.3384

So P(x < 9,000) = 0.5000-0.3384

= 0.1616

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