MAS HW 2 - rented any night. Use the Normal Approximation...

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Homework 2: Group 3: Adam Davidson, Cesar McFarlin, TJ Murphy, Adam Schatz 1. Suppose that a motel has 150 rooms and any room has a probability 0.35 of being rented any night. Use the Normal Approximation to obtain: a. Exact Binomial: Normal CDF (80, 60, ,52.5,5.84) = .5661 b. The Normal Approximation with correction (+/- 0.5): 49.5 - 57.5 = -.513 .3050 60.5 - 52.5 = 1.36 .9131 5.84 5.84 With corrections : .9131 - .3050 = 0.6081 c. The Approximation without the (+/- 0.5) corrections : 50 - 57.5 = -.423 .3372 60 - 52.5 = 1.28 .8997 5.84 5.84 Without corrections: .8997 - .3372 = 0.5625 2. Suppose that a motel has 15 rooms and any room has probability 0.35 of being
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Unformatted text preview: rented any night. Use the Normal Approximation to obtain: a. Exact Binomial: Normal CDF (5, 6, ,5.25,1.847) = .211 b. The Normal Approximation with correction (+/- 0.5): 4.5 - 5.25 = -.406 .3446 6.5 - 5.25 = .67 .7517 1.847 1.847 With corrections : .7517 - .3446 = 0.4071 c. The Approximation without the (+/- 0.5) corrections : 5 - 5.25 = -.135 .443 6 - 5.25 = .406 .6554 1.847 1.847 Without corrections: .6554 - .443 = 0.2124 Case Exact Binomial Approximate (with Correction) Approximate (w/ o Correction) 150 Rooms .5561 .6081 .5625 15 Rooms .211 .4071 .2148 Percent Difference 35% 20% 35%...
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MAS HW 2 - rented any night. Use the Normal Approximation...

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