In: Economics
An important part of the customer service responsibilities of a cable company relates to the speed with which trouble in service can be repaired. Historically, the data show that the likelihood is 0.75 that troubles in a residential service can be repaired on the same day. For the first five troubles reported on a given day, what is the probability that at least 3 troubles will be repaired on the same day?
BIONOMIAL DISTRIBUTION
pmf of B.D is = f ( k ) = ( n k ) p^k * ( 1- p) ^ n-k
where
k = number of successes in trials
n = is the number of independent trials
p = probability of success on each trial
I.
mean = np
where
n = total number of repetitions experiment is excueted
p = success probability
mean = 5 * 0.75
= 3.75
II.
variance = npq
where
n = total number of repetitions experiment is excueted
p = success probability
q = failure probability
variance = 5 * 0.75 * 0.25
= 0.9375
III.
standard deviation = sqrt( variance ) = sqrt(0.9375)
=0.968246
P( X < 3) = P(X=2) + P(X=1) + P(X=0)
= ( 5 2 ) * 0.75^2 * ( 1- 0.75 ) ^3 + ( 5 1 ) * 0.75^1 * ( 1- 0.75 ) ^4 + ( 5 0 ) * 0.75^0 * ( 1- 0.75 ) ^5
= 0.103516
P( X > = 3 ) = 1 - P( X < 3) = 0.896484