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Outline
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Chapter 3, Part A
 Probability Distributions
  • Random Variables
  • Discrete Probability Distributions
  • Binomial Probability Distribution
  • Poisson Probability Distribution
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Example:  JSL Appliances
  • Discrete random variable with a finite number           of values
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Example:  DiCarlo Motors, Inc.
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Example:  DiCarlo Motors, Inc.
  • Graphical Representation of the Probability Distribution
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Expected Value and Variance
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Example:  DiCarlo Motors, Inc.
  • Expected Value of a Discrete Random Variable
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Example:  DiCarlo Motors, Inc.
  • Variance and Standard Deviation
  •   of a Discrete Random Variable
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"Four Properties of a Binomial..."
  • Four Properties of a Binomial Experiment
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Binomial Probability Distribution
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Example:  Nastke Clothing Store
  • Tree Diagram
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Binomial Probability Distribution
  • Expected Value


  • Variance



  • Standard Deviation
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Example:  Nastke Clothing Store
  • Binomial Probability Distribution
    • Expected Value
    • Variance
    • Standard Deviation
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Poisson Probability Distribution
  • Poisson Probability Function
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Example:  Drive-up Teller Window
  • Poisson Probability Function:  Time Interval
  • Suppose that we are interested in the number of arrivals at the drive-up teller window of a bank during a 15-minute period on weekday mornings. If we assume that the probability of a car arriving is the same for any two time periods of equal length and that the arrival or non-arrival of a car in any time period is independent of the arrival or non-arrival in any other time period, the Poisson probability function is applicable.
  • Then if we assume that an analysis of historical data shows that the average number of cars arriving during a 15-minute interval of time is 10, the Poisson probability function with l = 10 applies.
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End of Chapter 3, Part A