Welcome

To be a better Decision Maker

Facilitator: Dr. Dinesh Panchal
My Course: Introduction
2

Programme MBA (HRM) Course Learning Outcomes (CLO)

Batch 2023-25 Term II
1. Demonstrate the ability of
Credit structuring and analyzing
Course Code 6MP207 3
Hours business problems statistically.
Course Title Business Statistics 2. Identify the applications of
quantitative management technique.
Instructors’
Prof. Dinesh Panchal 3. Apply quantitative methods in
Name(s)
effective management decision
E-mail IDs [email protected] making process.
Prof. Dinesh Panchal (079 4. Develop the ability to perform
Contact Nos.
71652663) statistical calculations using
Office Hours As per schedule computer based statistical
Moodle software.
Will be shared in class
Details
My Course: Book
2

Anderson, D. R., Sweeney, D. J., Williams, T.

A., Camm J. D., Cochran J. J., Fry, M.J., &
Ohlmann. J.W., (2023). Statistics for
Business and Economics, (14th Edition).
Cengage Learning.
My Course: Assessment Scheme
2

Overall
Assessment Weightage CLO
Weightage
Component % Schedule Number
%
Quiz – 1 After 4th session
Quiz – 2 6% each After 10thsession
12% 1, 2 & 3
Quiz – 3 Best 2 out of 3 After 20thsession
Mid-Term Exam 18% As per schedule 18% 1, 2 & 3
Group Assignment 1 15% After 5th session

Group Assignment 2
30% 1, 2, 3 & 4
(Library Assignment) 15% After 15nd session

End Term exam 40% As per schedule 40% 1, 2 & 3

My Course: Session Plan
2

No Description No Description
1 Introduction to Descriptive Statistics Hypothesis Testing for Large Sample: Two Samples
19
2 Measures of Central Tendency Test for difference between Means
3 Measures of Dispersion Hypothesis Testing for Small Sample: Two Samples
20
4 & 5 Descriptive Statistics using MS Excel Test for difference between Means - 1
6 & 7 Introduction to Probability Hypothesis Testing for Small Sample: Two Samples
21
8 Discrete Prob. Distribution: Binomial Distribution Test for difference between Means - 2
9 Discrete Prob. Distribution: Poisson Hypothesis Testing for Small Sample: Two Samples
22
10 Continuous Prob. Distribution: Normal Distribution Test for difference between Means - 3
11 Application of Normal Distribution 23 Chi Square Tests: Test of Independence
12 Sampling Distribution 24 Chi Square Tests
13 Sampling Distribution of Sample mean 25 Analysis of Variance (ANOVA)
14 & 15 Interval Estimation 26 Simple Correlation & Simple Regression Analysis
16 Hypothesis Testing Regression Analysis: Assumptions and Test for
27
Hypothesis Testing for Large Sample: Single Sample Significance
17
Test for Mean 28 Regression Analysis: Estimated Regression Equation
Hypothesis Testing for Small Sample: Single Sample 29 Regression Analysis: Using MS Excel
18
Test for Mean 30 Introduction to Multiple Linear Regression
Future….
In Our Life…
As a Manager….
• What is the chance that an employee will leave our company in next 6
months?
• Can we finish the required training in 3 months?
• What is the chance that job market will be good in next year?
• Will a person who has been promoted will perform well in the new
role?
•…
•…
Assigning Probabilities

= Required Outcome / Total Possible Outcome

Counting Rules
• If any one of k different mutually exclusive and collectively exhaustive
events can occur on each of n trials, the number of possible outcomes: Kn
Example: Rolling die 2 times: 6x6 = 36 or Tossing coin 3 times: 2x2x2 = 8
• If an experiment can be described as a sequence of k steps with n1
possible outcomes on the first step, n2 possible outcomes on the second
step, and so on, then the total number of experimental outcomes is given
by: (n1), (n2)….. (nk).
Example: You want to go to a park, eat at a restaurant, and see a movie. There are 3
parks, 4 restaurants, and 6 movie choices. Possible combinations are: 3x4x6 = 72
• The number of ways that n items can be arranged in order is: n! = n(n-1)(n-
2)….(1)
Example: Five books to put on a bookshelf = 5! = 5x4x3x2x1 = 120
Counting Rules
• Combinations: The number of ways of selecting “n” objects from “N”
objects, irrespective of order, is

You have five books and are going to select three are to read.
n! 5! 120
n Cx     10
X!(n  X )! 3!(5  3)! (6)(2)
Counting Rules
• Permutations: The number of ways of arranging “n” objects selected
from “N” objects in order is

You have five books and are going to put three on your desk.
n! 5! 120
n Px     60
(n  X )! (5  3)! 2
Counting Rules
Assigning Probabilities
Required Outcome / Total Possible Outcome
• Classical Method

• Frequency (Empirical) Method

• Subjective Method
Rules of Probability
Probability:
Suppose that a survey is conducted in which 500 families with three children
are asked to disclose the gender of their children. Based on the results, it was
found that 180 of the families had two boys and one girl.
(a) Estimate the probability of having two boys and one girl in a three-child
family using the empirical method.
(b) Compute and interpret the probability of having two boys and one girl in a
three child family using the classical method, assuming boys and girls are
equally likely.
Probability:

Ans: 3 / 8
Probability:

Suppose that a box of 100 circuits is sent to a manufacturing

plant. Of the 100 circuits shipped, 5 are defective. The plant
manager receiving the circuits randomly selects 2 and tests
them. If both circuits work, she will accept the shipment.
Otherwise, the shipment is rejected. What is the probability
that the plant manager discovers at least 1 defective circuit
and rejects the shipment?
 Probability:
Suppose that a box of 100 circuits is sent to a manufacturing plant. Of the 100 circuits shipped, 5 are defective.
The plant manager receiving the circuits randomly selects 2 and tests them. If both circuits work, she will accept
the shipment. Otherwise, the shipment is rejected. What is the probability that the plant manager discovers at
least 1 defective circuit and rejects the shipment?
Probability: Basic Relationship

Complement of An Event
Probability: Basic Relationship

Union of Events (A and B): A B

Probability: Basic Relationship

Intersection of Events (A and B): A 

Probability: Basic Relationship

Addition Law:
P(A B) = P(A) + P(B)  P(A  B
Probability: Basic Relationship

Addition Law:

a) Determine the probability that a randomly

selected U.S. resident 18 years old or older is
male.
Probability: Basic Relationship

Addition Law:

b) Determine the probability that a randomly

selected U.S. resident 18 years old or older is
widowed.
Basic Relationships of Probability:
Addition Law:

c) Determine the probability that a randomly

selected U.S. resident 18 years old or older is
male or widowed.
Probability: Basic Relationship

Mutually Exclusive Events:

A B

P(A B) = P(A) + P(B)  P(A  B

Probability: Basic Relationship

Addition Law:

d) Determine the probability that a randomly

selected U.S. resident 18 years old or older is
widowed or divorced.
Probability: Basic Relationship

Conditional Probability:
The probability of an event given that another event
has occurred
The conditional probability of A given B is
denoted by P(A|B).

P( A  B)
P( A|B) 
P( B)
Probability: Basic Relationship

Conditional Probability:

P( A  B)
P( A|B) 
P( B)
Probability: Basic Relationship

Conditional Probability:
P( A  B)
P( A|B) 
P( B)

Sample
Space - S

A B
Probability: Basic Relationship

Conditional Probability:

a) What is the probability that randomly

selected U.S. resident 18 years old or older is
widowed given that he is male.
Probability: Basic Relationship

Conditional Probability:

b) What is the probability that randomly

selected U.S. resident 18 years old or older is
female given that she is married.
Probability:
Practice Problem:
• Prob. that selected person is NOT Technical 86/155

• Prob. that selected person is Male 100/155

• Prob. that selected person Manager and Female 3/155

• Prob. that selected person is Manager or Female 63/155

• Prob. that selected person is Manager or Clerk 42/155

• Prob. that selected person is Manager given that she is Female 3/55

• Find out if there is any gender bias in getting Managerial position Yes
Probability Distribution
Probability Distribution

Survey: Number of boys in three child family

Probability of All Possible Outcomes

No of Boys Prob.
0
1
2
3
Probability Distribution

Survey: Number of boys in three child family

Probability of All Possible Outcomes

No of Boys Prob.
0 1/8
1 3/8
2 3/8
3 1/8
Probability Distribution
Random Variable:
• Random Variable: numerical description of the outcome of an
experiment

• Discrete Random Variable: Assume either a finite number of

values or an infinite sequence of values

• Continuous Random Variable: Assume any numerical value in an

interval or collection of intervals
Probability Distribution

• Probability Distribution: For a random variable it describes how

probabilities are distributed over the values of the random
variable

• How:
• Based on experimental outcomes
• Using special mathematical formula
Probability Distribution

• Probability Function - f(x) : Provides the probability for each value

of the random variable

• Conditions:
f(x) > 0, f(x) = 1
Probability Distribution

80/200

Number
Units Sold of Days x f(x)
0 80 0 .40
1 50 1 .25
2 40 2 .20
3 10 3 .05
4 20 4 .10
200 1.00
ProbabilityProbability
Distribution Distribution

.50

.40
80/200
Probability

.30

.20 Number
Units Sold of Days x f(x)
.10
0 80 0 .40
1 50 1 .25
0 1 2 3 4
2 40 2 .20
Values of Random Variable x (TV sales) 3 .05
3 10
4 20 4 .10
200 1.00
Probability Distribution
Expected Value:
The expected value, or mean, of a random variable
is a measure of its central location.
E(x) =  = xf(x)

The expected value is a weighted average of the

values the random variable may assume. The
weights are the probabilities.
The expected value does not have to be a value the
random variable can assume.
ProbabilityProbability
Distribution Distribution
x f(x) xf(x)
0 .40 .00 Expected Value
1 .25 .25
Number
2 .20 .40
Units Sold of Days x f(x)
3 .05 .15 0 80 0 .40
4 .10 .40 1 50 1 .25
2 40 2 .20
E(x) = 1.20 3 10 3 .05
4 20 4 .10
200 1.00
Probability Distribution
Variance & Standard Deviation:
The variance summarizes the variability in the
values of a random variable.
Var(x) =  2 = (x - )2f(x)

The variance is a weighted average of the squared

deviations of a random variable from its mean.
The weights are the probabilities.
The standard deviation, , is defined as the
positive square root of the variance.
Probability Distribution
Variance & Standard Deviation:
x x- (x - )2 f(x) (x - )2f(x)
0 -1.2 1.44 .40 .576
1 -0.2 0.04 .25 .010
2 0.8 0.64 .20 .128
3 1.8 3.24 .05 .162
4 2.8 7.84 .10 .784
Variance of daily sales = 2 = 1.660

Standard deviation of daily sales = 1.29 TVs

Probability Distribution
During one holiday season, the Texas lottery played a game called the Stocking Stuffer. With this game, total
instant winnings of $34.8 million were available in 70 million $1 tickets, with ticket prizes ranging from $1 to $1,000.
Shown here are the various prizes and the probability of winning each prize. Use these data to compute the
expected value of the game, the variance of the game, and the standard deviation of the game.
Probability Distribution
During one holiday season, the Texas lottery played a game called the Stocking Stuffer. With this game, total
instant winnings of $34.8 million were available in 70 million $1 tickets, with ticket prizes ranging from $1 to $1,000.
Shown here are the various prizes and the probability of winning each prize. Use these data to compute the
expected value of the game, the variance of the game, and the standard deviation of the game.
Probability Distribution

Ans: Mean = 2.666, Variance = 1.8364, Std Deviation = 1.3552

Probability Distribution

Expected Number of Flaws: 0.956

Std Deviation od Flaws = 1.1305
Probability Distribution
Discrete Probability Distribution:

Random Variable: No of Heads

Probability Distribution: ? ? ?

Expected Value: ? ? ?
Binomial Probability
Distribution
Probability Distribution: Binomial Prob. Dist.

Four Properties
1. The experiment consists of a sequence of n
identical trials.
2. Two outcomes, success and failure, are possible
on each trial.

3. The probability of a success, denoted by p, does

not change from trial to trial.
stationarity
4. The trials are independent. assumption
Probability Distribution: Binomial Prob. Dist.

Evans Electronics is concerned about a low retention rate

for its employees. In recent years, management has seen
a turnover of 10% of the hourly employees annually.
Thus, for any hourly employee chosen at random,
management estimates a probability of 0.1 that the
person will not be with the company next year.
Choosing 3 hourly employees at random, what is the
probability that 1 of them will leave the company this year?
Probability Distribution: Binomial Prob. Dist.

1st Worker 2nd Worker 3rd Worker x Prob.

L (.1) 3 .0010
Leaves (.1)
S (.9) 2 .0090
Leaves
(.1) L (.1) 2 .0090
Stays (.9)
S (.9) 1 .0810
L (.1) 2 .0090
Leaves (.1)
Stays S (.9) 1 .0810
(.9) L (.1)
1 .0810
Stays (.9)
S (.9) 0 .7290
Probability Distribution: Binomial Prob. Dist.

Probability Function
n!
f (x)  p x (1  p )( n  x )
x !(n  x )!
where:
x = the number of successes
p = the probability of a success on one trial
n = the number of trials
f(x) = the probability of x successes in n trials
n! = n(n – 1)(n – 2) ….. (2)(1)
Probability Distribution: Binomial Prob. Dist.

Let: p = .10, n = 3, x = 1

n!
f ( x)  p x (1  p ) ( n  x )
x !( n  x )!
3!
f (1)  (0.1)1 (0.9)2  3(.1)(.81)  .243
1!(3  1)!
Probability Distribution: Binomial Prob. Dist.
 Probability Distribution: Binomial Prob. Dist.

= 3 x 0.0810

0.9 x 0.9 x 0.1

0.9 x 0.1 x 0.9

0.1 x 0.9 x 0.9

Probability Distribution: Binomial Prob. Dist.

1st Worker 2nd Worker 3rd Worker x Prob.

L (.1) 3 .0010
Leaves (.1)
S (.9) 2 .0090
Leaves
(.1) L (.1) 2 .0090
Stays (.9)
S (.9) 1 .0810
L (.1) 2 .0090
Leaves (.1)
Stays S (.9) 1 .0810
(.9) L (.1)
1 .0810
Stays (.9)
S (.9) 0 .7290
Probability Distribution: Binomial Prob. Dist.

E(x) =  = np

Var(x) =  2 = np(1  p)
Probability Distribution: Binomial Prob. Dist.

E(x) = np = 3(0.1) = 0.3 employees of 3

Var(x) = np(1 – p) = 3(0.1)(0.9) = 0.27

Probability Distribution: Binomial Prob. Dist.

Ans: 3 / 8
 Probability Distribution: Binomial
Binomial Probability Distribution Prob. Dist.
Evans Electronics is concerned about a low retention rate for its employees.
In recent years, management has seen a turnover of 20% of the hourly
employees annually. Thus, for any hourly employee chosen at random,
management estimates a probability of 0.2 that the person will not be with
the company next year.
Choosing 10 hourly employees at random, what is the probability that
maximum 2 of them will leave the company this year?
Reqd. Probability = f(0) + f(1) + f(2)
 Probability Distribution: Binomial
Binomial Probability Distribution Prob. Dist.
Evans Electronics is concerned about
a low retention rate for its
employees. In recent years,
management has seen a turnover of
20% of the hourly employees
annually. Thus, for any hourly Reqd. Probability = f(0) + f(1) + f(2)
employee chosen at random,
management estimates a probability
of 0.2 that the person will not be
x f(x) Total
with the company next year. 0
Choosing 10 hourly employees at
random, what is the probability that 1
maximum 2 of them will leave the 2
company this year?
 Probability Distribution: Binomial
Binomial Probability Distribution Prob. Dist.
Evans Electronics is concerned about
a low retention rate for its
employees. In recent years,
management has seen a turnover of
20% of the hourly employees
annually. Thus, for any hourly Reqd. Probability = f(0) + f(1) + f(2)
employee chosen at random,
management estimates a probability
of 0.2 that the person will not be
x f(x) Total
with the company next year. 0 0.1074
Choosing 10 hourly employees at
random, what is the probability that 1 0.2684
maximum 2 of them will leave the 2 0.3020
company this year?
 Probability Distribution: Binomial
Binomial Probability Distribution Prob. Dist.
Evans Electronics is concerned about
a low retention rate for its
employees. In recent years,
management has seen a turnover of
20% of the hourly employees
annually. Thus, for any hourly Reqd. Probability = f(0) + f(1) + f(2)
employee chosen at random,
management estimates a probability
of 0.2 that the person will not be x f(x) Total
with the company next year. 0 0.1074
Choosing 10 hourly employees at
random, what is the probability that 1 0.2684 0.6778
maximum 2 of them will leave the
company this year?
2 0.3020
 Probability Distribution: Binomial
Binomial Probability Distribution Prob. Dist.
Evans Electronics is concerned about a
low retention rate for its employees. In
recent years, management has seen a
turnover of 20% of the hourly x f(x)
employees annually. Thus, for any 0
hourly employee chosen at random, 1
management estimates a probability of 2
0.2 that the person will not be with the 3
company next year. 4
Choosing 10 hourly employees at 5
random, what is the probability that 6
maximum 2 of them will leave the 7
company this year? 8
9
10
 Probability Distribution: Binomial
Binomial Probability Distribution Prob. Dist.
Evans Electronics is concerned about
a low retention rate for its
employees. In recent years,
management has seen a turnover of x f(x)

20% of the hourly employees 0 0.107

1 0.268
annually. Thus, for any hourly
2 0.302
employee chosen at random, 3 0.201
management estimates a probability 4 0.088
of 0.2 that the person will not be 5 0.026
with the company next year. 6 0.006
Choosing 10 hourly employees at 7 0.001
random, what is the probability that 8 0.000
maximum 2 of them will leave the 9 0.000
company this year? 10 0.000
 Probability Distribution: Binomial
Binomial Probability Distribution Prob. Dist.

=BINOM.DIST( x, n, p, 0)
 Probability Distribution: Binomial
Binomial Probability Distribution Prob. Dist.
Probability Distribution: Binomial Prob. Dist.
A Gallup survey found that 65% of all financial consumers were very satisfied with
their primary financial institution. Suppose that 25 financial consumers are
sampled and if the Gallup survey result still holds true today, what is the
probability that exactly 19 are very satisfied with their primary financial institution?
Probability Distribution: Binomial Prob. Dist.
According to the U.S. Census Bureau, approximately 6% of all workers in
Jackson, Mississippi, are unemployed. In conducting a random telephone
survey in Jackson, what is the probability of getting two or fewer
unemployed workers in a sample of 20?
Probability Distribution: Binomial Prob. Dist.
According to Information Resources, which publishes data on market share
for various products, Oreos control about 10% of the market for cookie
brands. Suppose 20 purchasers of cookies are selected randomly from the
population. What is the probability that fewer than four purchasers choose
Oreos?
n = 20, p = 0.10, and x < 4.
Probability Distribution: Binomial Prob. Dist.

What is the first big change that American drivers made due to higher
gas prices? According to an Access America survey, 30% said that it was
cutting recreational driving. However, 27% said that it was consolidating
or reducing errands. If these figures are true for all American drivers, and
if 20 such drivers are randomly sampled and asked what is the first big
change they made due to higher gas prices,
a. What is the probability that exactly 8 said that it was consolidating or
reducing errands? n=20, p=0.27, x=8 Ans: 0.0815
b. What is the probability that none of them said that it was cutting
recreational driving? n=20, p=0.30, x=0 Ans: 0.0008
c. What is the probability that more than 7 said that it was cutting
recreational driving? n=20, p=0.27, x>7 Ans: 0.1454
Probability Distribution: Binomial Prob. Dist.
A manufacturing company produces 10,000 plastic mugs per week. This company
supplies mugs to another company, which packages the mugs as part of picnic
sets. The second company randomly samples 10 mugs sent from the supplier. If
two or fewer of the sampled mugs are defective, the second company accepts the
lot. What is the probability that the lot will be accepted if the mug manufacturing
company actually is producing mugs that are 10% defective? 20% defective? 30%
defective? 40% defective?

n = 10, x <= 2
Probability Distribution: Binomial Prob. Dist.

Compute and use Excel Sheet for confirmation

Poisson Probability
Distribution
Probability Distribution: Poisson Prob. Dist.

Number of occurrences over a specified interval

of time or space

A discrete random variable that may assume an

infinite sequence of values (x = 0, 1, 2, . . . )
Probability Distribution: Poisson Prob. Dist.

Examples:
1) Potholes in 1 KM of Road
2) Arrival of Vehicles on Toll
Plaza in One Hour

Bell Labs used the Poisson

Distribution to model the arrival of
phone calls
Probability Distribution: Poisson Prob. Dist.

Properties:

1. The probability of an occurrence is

the same for any two intervals of
equal length
2. The occurrence or nonoccurrence
in any interval is independent of the
occurrence or nonoccurrence in
any other interval
Probability Distribution: Poisson Prob. Dist.

where:
x = the number of occurrences in an interval
f(x) = the probability of x occurrences in an
interval
 = mean number of occurrences in an
interval
e = 2.71828
Probability Distribution: Poisson Prob. Dist.

Probability Function f(x) is applicable

for values x = 0, 1, 2, … without limit

Practically, x will eventually become

large enough so that f(x) is
approximately zero
Probability Distribution: Poisson Prob. Dist.

Patients arrive at the emergency

room of Hospital at the average
rate of 6 per hour on weekend
evenings.
What is the probability of 4
arrivals in 30 minutes on a
weekend evening?
Probability Distribution: Poisson Prob. Dist.
Probability Distribution: Poisson Prob. Dist.

Poisson Probabilities
0.25

0.20
Probability Actually,
0.15 the sequence
continues:
0.10 11, 12, 13 …

0.05

0.00
0 1 2 3 4 5 6 7 8 9 10
Number of Arrivals in 30 Minutes
Probability Distribution: Poisson Prob. Dist.

Mean and Variance

Probability Distribution: Poisson Prob. Dist.

µ = 1.20
= POISSON(x, µ, 0)

Number
Units Sold of Days x f(x)
0 80 0 .40
1 50 1 .25
2 40 2 .20
3 10 3 .05
4 20 4 .10
200 1.00
Probability Distribution: Poisson Prob. Dist.

µ = 1.20
= POISSON(x, µ, 0)

x p(x)
0
1
x f(x) 2
0 .40 3
1 .25 4
2 .20 5
3 .05 6
4 .10 7
1.00
Probability Distribution: Poisson Prob. Dist.

µ = 1.20
= POISSON(x, µ, 0)

x p(x)
0 0.301
1 0.361
x f(x) 2 0.216
0 .40 3 0.086
1 .25 4 0.026
2 .20 5 0.006
3 .05 6 0.001
4 .10 7 0.000
1.00
Probability Distribution: Poisson Prob. Dist.
Bank customers arrive randomly on weekday afternoons at an average of 3.2
customers every 4 minutes. What is the probability of having more than 7
customers in a 4-minute interval on a weekday afternoon?

u u

u
Probability Distribution: Poisson Prob. Dist.
A bank has an average random arrival rate of 3.2 customers every 4
minutes. What is the probability of getting exactly 10 customers during
an 8-minute interval?

u = 3.2 customers / 4 minutes

x = 10 customers / 8 minutes

u = 6.4 customers / 8 minutes

x = 10 customers / 8 minutes
Probability Distribution: Poisson Prob. Dist.
Suppose the probability of a bank making a mistake in processing a deposit is .0003. If 10,000 deposits (n)
are audited, what is the probability that more than 6 mistakes were made in processing deposits?
Probability Distribution: Poisson Prob. Dist.
Probability Distribution: Poisson Prob. Dist.
All Together
Probability Distribution:
1) You have 10 machines in your workshop. Due to the condition of the machines, on an
average 18% of the machines keep failing on a weekly basis. In the next week you have
very important work to be completed for which you need 8 machines in working
condition. Find out the probability that at least 8 machines will be in working condition in
the next week.
Probability Distribution:
2) The following data are the result of a historical study of the number of flaws found in a
porcelain cup produced by a manufacturing firm. Use these data and the associated
probabilities to compute the expected number of flaws and the standard deviation of
flaws. What is the probability that maximum 2 flows will be observed?

Flaws Probability
0 0.461
1 0.285
2 0.129
3 0.087
4 0.038
Probability Distribution:
3) On Monday mornings, the First National Bank only has one teller window open for
deposits and withdrawals. Experience has shown that the average number of arriving
customers in a four-minute interval on Monday mornings is 2.8, and each teller can serve
more than that number efficiently. What is the probability that on a Monday morning
exactly six customers will arrive in a four-minute interval? Also, find the probability that
no one will arrive at the bank to make a deposit or withdrawal during a four-minute
interval?
Probability Distribution:
4) A machine is used in a production process. From past data, it is known that 97% of the
time the machine is set up correctly. Furthermore, it is known that if the machine is set up
correctly, it produces 95% acceptable (non-defective) items. However, when it is set up
incorrectly, it produces only 40% acceptable items. If we randomly select 10 items,
produced by this machine, what is the probability that we will find all 10 good items?
Probability Distribution:
5) From past data, it is known that 97% of the time the selection of candidate is correct.
Furthermore, it is known that if the candidate is selected correctly, he/she performs well
for around 98% of the time. However, when it is realized that candidate selection is not
correct, he/she performs only 70% of the time. In your client organization they have 1,000
employees, what is the probability that we will find 10 non-performing employee?
Thank You!

???