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b)
f(X)
0.038146432
0.062502317
0.084114921
0.099165894
0.129267841
0.172455978
0.153660797
0.132974977
0.086190918
0.041519926
One of the important property of discreet probability distribution is that sum of the probabilities of
1
Thus, it satistfies the condition of discreet probability distribution.
is unemployed
Numer unemployed
1,029
1,686
2,269
2,675
3,487
4,652
4,145
3,587
2,325
1,120
26,975
tion is that sum of the probabilities of all possible values which is a radom variable "x" can assume, is always unity.
In this example, we have developed empirical discreet probability distribution for random variable.
As in this example, a radom variable i.e. no. of months persons are employed is a discreet variable, therefore we
have developed discreet probability distribution
One of the important property of discreet probability distribution is that sum of the
probabilities of all possible values which is a radom variable "x" can assume, is
always unity. Thus if we take sum of all probabilities of all posssible values, we will
get 1; hence it is a discreet prbability distribution
a) Probability distribution for owner occupied unit having water supply stoppage
No. of times
Owner Occupied
0
1
2
3
4 times or more
439
1100
249
98
120
2006
Probability distribution
x
f(x)
0
1
2
3
4
0.21884347
0.548354935
0.124127617
0.04885344
0.059820538
=
x*f(x)
x-
0 -1.182452642
0.5483549352 -0.634097707
0.2482552343 -0.934197408
0.146560319 -1.035892323
0.2392821535 -0.943170489
(x-)2
1.3982
0.4021
0.8727
1.0731
0.8896
b)
Expected value = = 1.1824
Variance =
0.7404
c)
a) Probability distribution for renter occupied unit having water supply stoppage
No. of times
0
1
2
3
4 times or more
Renter Occupied
394
760
221
92
111
1578
Probability distribution
x
f(x)
0
1
2
3
4
0.249683143
0.481622307
0.140050697
0.058301648
0.070342205
=
x*f(x)
x-
0 -1.217997465
0.4816223067 -0.736375158
0.2801013942 -0.937896071
0.174904943 -1.043092522
0.2813688213 -0.936628644
(x-)2
1.484
0.542
0.880
1.088
0.877
d)
Expected value = = 1.218
Variance =
0.880
e)
The expected value E(x) of 1.218 in case of water stoppages lasting for more than 6 hours in the past 3 months in
Occupied units. The variance of number of times in which water stoppage took place is also greater (0.880) in ca
f(x)*(x-)2
0.3060
0.2205
0.1083
0.0524
0.0532
probabilities of the outcomes)
Same as in part a
f(x)*(x-)2
0.370
0.261
0.123
0.063
0.062
probabilities of the outcomes)
Same as in part b
han 6 hours in the past 3 months in Renter Occupied units is greater than expected value of 1.182 in case of Owner
place is also greater (0.880) in case of Renter Occupied units as compared to Owner Occupied units (0.740)
ndom variable is the probability weighted average of all possible values i.e. x*f(x)
of square differences from the mean i.e. f(x)*(x-)2
In this case study, data suggests that it follows binomial distribution. (equal chances of success in given trial)
Size of sample = n = 10
Probability of success (p) = 0.4
Probability of failure (q) = 0.6
Here we have used the formula:1 - (probability that exactly one of the ap
ere, we have used binomial distribution. It is a distribution where each trial can only result in two possible
tcomes, either success or failure. Probability of success on every trial
rmula we used is,
Cx *(p^x) * (q^x)
= Size of sample
) = Probability of success
) = Probability of failure
ere, we have used binomial distribution. It is a distribution where there are equal chances of success in given trial
rmula we used is,
Cx *(p^x) * (q^x)
= Size of sample
) = Probability of success
) = Probability of failure
ere we have used the formula:(probability that exactly one of the appeal will be succesful)
c) Probability of no calls in a five minute period can be computed as:f (0) = [ (5 / 2 )^0 (e -5/2) ] / 0!
0.082084999
isson probability distribution to determine probability of (x) occurances I.e. 3 calls in an interval i.e. one minute.
isson probability distribution to determine probability of (x) occurances I.e. 0 calls in an interval i.e. five minutes.
ne minute.
ive minutes.
3/20
1/10
1/20
### 120.00 130.00 140.00
Minutes
130 minutes
0.8
0.7
a)
0.6
0.5
0.4
0.3
0.2
0.1
0
10
15
20
25
Probability Distribution
15
20
25
30
35
First, to solve this case study, we need to draw Normal Distribution Table. Then we need to convert the data into
a)
b)
c) Now in order to find out that how big the return would have to be to put a domestic stock fund in top 10%, we need to find a
is 1.28. So we can safely say, that a Z score of 1.28 corresponds to the top 10 % return on domestic stock fund.
Z - Score = ( Value - Mean ) / Standard Deviation
= (10 - 14.4) / 4.4
1.28 = (Value - 14.4) / 4.4
Value = (1.28*4.4)+14.4
20.03
ck fund in top 10%, we need to find a value in normal distrubution table which is closest to 0.9. It
domestic stock fund.
I have used this example by making use of Standard normal distribution table. The number of standard deviations from mean is
can convert a value to Standard Score i.e Z score by subtracting it from the mean and dividing it by standard deviation, which w
Same as above
Same as above