5-9E

a.

The given data comprises responses of 2000 college graduates who graduated five years
ago, in regard to question that how long they have worked for their customers. It is
required to develop an empirical discrete probability distribution for x, time with current
employers.

Divide number of employees corresponding to 1, 2,…,5 years by total number of

employees. This would generate the probability distribution. The following table gives
the discrete probability distribution.

Time with current f ( x)

employer, x
1 0.253
2 0.195
3 0.155
4 0.109
5 0.288
Total 1.000
Figure 5a-9E discrete probability distribution.

b.

The required conditions for discrete probability distributions are as follows:

f ( x)  0 (1)
 f ( x)  1 (2)

The probability for random variable x satisfy equation 1, f ( x) is greater than or equal to
0, for all value of x. In addition probabilities sum to 1. Therefore, both the conditions are
met. Hence, the discrete probability distribution is valid.

c.

Add the probabilities corresponding to x  4, 5 . This would give the probability that
respondent had been at his/her current place of employment for more than 3 years

The required probability is as follows:

P( x  3)  P( x  4)  P( x  5)
= 0.109+0.288
= 0.397

Therefore, the required answer is: 0.397 .