19. Your firm has decided to interview a random sample of 10 customers in order

Question

19. Your firm has decided to interview a random sample of 10 customers in order to determine whether or not to change a consumer product. Your main competitor has already done a similar but much larger study and has concluded that exactly 86% of consumers approve of the change. Unfortunately, your firm does not have access to this information (but you may use this figure in your computations here).

Explain the process of all the questions

a. What is the name of the probability distribution of the number of consumers who will approve of change in your study?

b. What is the expected number of people, out of the 10 you will interview, who will approve of the change?

c. What is the standard deviation of the number of people, out of 10 you will interview, who will approve of the change?

Explanation / Answer

a.) The number of consumers who will approve of change in your study follow a binomial distribution with parameters 10 and 0.86

b.) expected number of people, out of the 10 you will interview, who will approve of the change = 10 × 0.86 = 8.6

c.) standard deviation of the number of people, out of 10 you will interview, who will approve of the change

= (10 × 0.86 × 0.14) = 1.0973

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.