a. You consult for a bakery to advise them how many cakes to bake for the next d

Question

a. You consult for a bakery to advise them how many cakes to bake for the next day. You have good reason to believe that both the Gaussian and binomial distributions would be close approximations to the actual demand for cakes. Which would you use, and why?

b. You consult for a bakery to advise them how many cakes to bake for the next day. You have good reason to believe that the Gaussian, Poisson and binomial distributions would all be close approximations to the actual demand for cakes. What would be a good reason to choose the Poisson distribution?

Thank you so much

Explanation / Answer

a)Obviously we will choose binomial distribution.It is because of the reason that normal distribution has negative support,so,number of cakes cant be negative,and also,number of cakes is discrete variable but normal distribution symbolises continuous variable.Hence,Binomial distribution will be correct.

b)If,probability of selling of a cake is pretty low whereas total number of cakes is very high on an average,then Poisson ditribution will approximates number of cakes best.Otherwise,binomial distribution will work well.

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