B: the event that a car fails an emissions test within two years.
A1: The event that a car has small engine
A2: The event that a car has medium-size engine
A3: The event that a car has large engine
Given P(B|A1)=0.10, P
Binomial (section 4.6)
RV of interest, Y = total # of successes
Follows directly from Bernoulli distribution
A series of n Bernoulli trials
0 < p(y) < 1
p(y) = 1
Probability distribution of Y can be presented as a table, graph or formula
Random Variables and Discrete Probability Distributions
Sections: 4.1-4.6; 4.8 - 4.10
Random Variable: A function that assigns a numeric value to every possible outcome
Flipping a coin 5 times and using random variable X to denote the
Empirical Rule and Law of Large Numbers
a) Single observation will be within two or three standard deviations of mean (Empirical
b) Average of a large number of repetitions of same experiment will be close to
Example 4.6 page 125
Chapter 2.1 - 2.8
The science of:
Measurement with words
Measurement with numbers
Product Quality in the US before
Lets start with some common Excel graph types and see how they look with the
random order data.
Here are the default Column Chart and Bar Chart views
What do these graphs tell you?
What does the x-axis represent in the column char
Analyze Data (qualitative)
Analyze Data (quantitative)
What is a Statistic?
A Statistic - numerical descriptive measure computed from sample data
Characteristics of a Sampling Distribution
Quantifying Normal Distribution
Measures of Relative Standing
Median (2nd Quartile)
Finding Quartiles wi
The table above shows sales performance of sales staff of an insurance
company last month. What is the variance of number of sales per employee?
(For Q2 Q3)
A large industrial firm allows a discount on any invoice th
# of sales
1. The table above shows sales performance of sales staff of an insurance company
last month. What is the variance of number of sales per employee?
(For Q2 Q3)
A large industrial fir
Supply and Demand
MODERN PRINCIPLES OF ECONOMICS
Equilibrium and the Adjustment Process
A Free Market Maximizes Producer Plus
Consumer Surplus (the Gains from Trade)
Does the Model Work?