BA 253: Business Statistics 09/24/08
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Binomial Distribution ICE 4 Normal Distribution
Return/Discuss Exam 1
Ex: You apply to six MBA programs. Estimate 20% chance of acceptance at each. What
is probability of 0 acceptances, 1, 2, or 2 or more acceptances.
List requirements: n trials, two outcomes, known fixed probs, independence.
Solve above, list PD, show on TI-83. P(x) = nCx px(1-p)(n-x)
Ex: Flip 5 coins. How many tails? Do PD, calculate probs, introduce binomial.
Ex: Construction, five bids, 35% chance at each, P(more than one).
Ex: Survey: Assume as a whole, 70% of the population favor a proposition, 30% oppose
(but you don’t know this yet).
You survey 9 people. What is the probability of getting the wrong result? That
is, a majority (5 or more) oppose the proposition?
You survey 29 people. Now what is the prob of getting the wrong result? Do on
MS Excel.
