Mimis Orlando Shuttle Calculating Profit Example
Problem
Mimis Orlando Shuttle is losing money because of a recent fuel crisis and a problem
with no-show reservations. She doesnt overbook or charge a cancellation fee.
She must find a way to design a new r

Hogan Industries Solution and Calculation
a. The yearly cost of maintaining the current system is $142,985.92
= (cost of valves including labor + initial cost per year) =
($130,985.92 + $12,000)
b. For my proposed system, I predict a catastrophe to occur

Efficient Rate Example and The Payback Period for Projects
Problem
Admiral Bills believes that the boxes of cake mix are not being filled using the most
efficient rate.
Methodology
First I used normal distribution to calculate the percent and number of go

Sammys Exterminators Regression Example
Regression One
Salary = 44,615 + 15,206 (Gender)
(51,525) (3,778)
(5,604) R^2=0.021= 2.1%
Sammy pays $44,615 + $15,206 if you are a man.
Regression Two
Salary = -554 + 6,737 (Experience)
(41,555) (4,368) (484)
R^2 =

Regression Analysis
Regression 1
Salary = 87,690 + 3,969 (Experience) 85,171 (Expert) + 1,855 (Gender)
(26,428) (5021)
R^2 = 0.744 = 74.4%
(333)
(3825)
(2910)
Sammy pays $87,690 + $3,969 per year of experience $85,171 if you are
not an expert + $1,855 if

Hogan Industries Probability Example
Problem
The CEO of Hogan Industries, Holly Hogan, believes that there must be a better way
to save money on expensive valves, while keeping the risk of catastrophe to a
minimum, by utilizing a system of mixed-quality v

The Mean of a Binomial
o The mean of a Binomial, in addition to being the sum of (x * P(x) is also simply n*p
And the Standard Deviation in addition to being the square root of the sum of (xmean) squared * P(x) is the square root of n*p*q
Geometric Distri

Uniform Distribution
The probability of the second hand being between any 2 adjacent numbers would be 1/12. The
collection of the outcomes of the second hand is a uniform distribution.
o In a Uniform Distribution, all outcomes (of equal width) are equally

Tree Statistics
o Lets take a look at a TreeORIGINAL EXAMPLE
The Addition Rule
o The probability that one or the other of two events will occur is:
o P (A or B) =P(A) + P(B) - P(A and B)
o This subtraction eliminates/accounts for any double counting that

The Probability Rules Common Mistakes
1. Using the wrong formula, especially since the Multiplication Rule is used for And &
our intuition is And indicates the need for the Addition Rule
2. Adding rather than multiplying fractions in the Multiplication Ru