Runninghead: Individual Work 1 1

Individual Work 1

Iletha Miller

QMB 5355

Robert Miner

October 25, 2015

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Individual Work 1

2. A company that franchises coffee houses conducted a taste test for a new coffee product.
The company prepared four blends and randomly chose individuals to do a taste test and
state which of the four blends they liked best. Results of the taste test for 100 individuals
are given.
a. Define the experiment being conducted. How many times was it repeated?

Chose a person at random, and have him/her taste the four blends of coffee and state a
preference.

b. Prior to conducting the experiment, it is reasonable to assume preferences for the four
blends are equal. What probabilities would you assign to the experimental outcomes
prior to conducting the taste test? What method did you use?

Assign a probability of 1/4 to each blend, using the classical method of equally likely
Outcome.

c. After conducting the taste test, what probabilities would you assign to the’
experimental outcome? What method did you use?

c. Blend Probability
1 .20
2 .30
3 .35
4 .15

Total = 1.0 using the relative frequency method

6. A sample of 100 customers of Montana Gas and Electric resulted in the following
frequency distribution of monthly charges.

Amounts Number
0-49 13
50 -99 22
100 -149 34
150 -199 26
200—249 5

Find the probability P(A) of the event A = {monthly charges are> $150}.

In view of length of each interval of amount distribution is the same relative frequency
of each monthly charge we define as the probability of sample point.
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P (A) = P (150< xle199) + P (200<x<249) = 0.26 + 0.05 = 0.31

2. Ac = {monthly charges are < $150} and

P (Ac =) = 1 - P (A) = 1 - 0.31 = 0.69
The probability of union of events A and B equals
P(A U B) =P(A) +P(B)- P(A n B)

P (A U B) = P(A)+ P (B)

The conditional probability.

P(A) = P(150 - 199) + P(200 and over)

26 + 5
100 100
= 0.31

b. P(B) = P(<50) + P(50-99) + P(100-149)

= 0.13 + .22 + .34

= 0.69

7. Suppose a sample space has five equally likely experimental outcomes E1, E2, E3,E4

A. find P (A), P (B), and P(C)

P(A) = P(E1) + P(E2) = 0.2 + 0.2 = 0.4,

P(B) = P(E3) + P(E4) = 0.2 + 0.2 = 0.4,

B. find P (A u B), are A and B mutually exclusive?

A U B = {E1 , E2, E3, E4 } ---- P(A U B) = 0.8

A and B are mutually exclusive

C. find A c, Cc, P (Ac), P(C), and P(C)

A = {E1, E2} B = {E3, E4} C = {E2, E3, E5}

Ac = {E3, E4, E5} P (Ac) = 0.6

Cc = {E1, E4} P (Cc) = 0.4

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D. find (A U B) and P (A U B)

A = {E1, E2} B = {E3, E4} C = {E2, E3, E5}

Bc = {E1, E2, E5}

A U Bc = {E1, E2, E5} P(A U Bc) = 0.6

E. fine P (B U C)

A = {E1, E2} B = {E3, E4} C = {E2, E3, E5}

B U C = {E2, E3, E4, E5} P(B U C) = 0.8

References

Anderson, Sweeney, Williams, Camm, Cochran, Fry & Ohlmann (2010). Quantitative Methods

for Business (12th ed.). Mason, Ohio: Cengage Learning. ISBN:

9781133707592