Shown here are the top 19 companies in the world in terms of oil refining capaci

Question

Shown here are the top 19 companies in the world in terms of oil refining capacity. Some of the companies are privately owned and others are state owned. Suppose six companies are randomly selected.

a.       What kind of distribution is this

b.      What is the N?

c.       How many "successes" are there?

d.      What is the probability that exactly one company is privately owned?

Company Ownership Status ExxonMobil Private Royal Dutch/Shell Private Sinopec Private British Petroleum Private ConocoPhillips Private Petroleos de Venezuela State Total Private Valero Energy Private China National State Saudi Arabian State Petroleo Brasilerio State Chevron Private Petroleos Mexicanos State National Iranian State Nippon Private Rosneft (Russia) State OAO Lukoil Private Repsol YPF Private Kuwait National State

Explanation / Answer

a) Discrete distribution : as there are only two choices for companies, it can be modeled by binomial distribution.

b) N=6 as sample size is 6

c) suppose being privately owned is a success than :

P(success) = 11/19

There can be many successes from 0 to 6 depending what is the proportion of privately owned companies in our sample.

d) probability that exactly one company is privately owned : 5*11/19 * 7/18 * 6*/17* 5/16 * 4/15 * 3/14 = 0.00709

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