In: Statistics and Probability
In the following problem, check that it is appropriate to use
the normal approximation to the binomial. Then use the normal
distribution to estimate the requested probabilities.
It is known that 77% of all new products introduced in grocery
stores fail (are taken off the market) within 2 years. If a grocery
store chain introduces 60 new products, find the following
probabilities. (Round your answers to four decimal places.)
(a) within 2 years 47 or more fail
(b) within 2 years 58 or fewer fail
(c) within 2 years 15 or more succeed
(d) within 2 years fewer than 10 succeed
Using Normal Approximation to Binomial
Mean = n * P = ( 60 * 0.77 ) = 46.2
Variance = n * P * Q = ( 60 * 0.77 * 0.23 ) = 10.626
Standard deviation = √(variance) = √(10.626) = 3.2598
Part a)
P ( X <= 58 )
Using continuity correction
P ( X < n + 0.5 ) = P ( X < 58 + 0.5 ) = P ( X < 58.5
)
X ~ N ( µ = 46.2 , σ = 3.2598 )
P ( X < 58.5 )
Standardizing the value
Z = ( X - µ ) / σ
Z = ( 58.5 - 46.2 ) / 3.2598
Z = 3.77
P ( ( X - µ ) / σ ) < ( 58.5 - 46.2 ) / 3.2598 )
P ( X < 58.5 ) = P ( Z < 3.77 )
P ( X < 58.5 ) = 0.9999
Part b)
P ( X >= 47 )
Using continuity correction
P ( X > n - 0.5 ) = P ( X > 47 - 0.5 ) =P ( X > 46.5 )
X ~ N ( µ = 46.2 , σ = 3.2598 )
P ( X > 46.5 ) = 1 - P ( X < 46.5 )
Standardizing the value
Z = ( X - µ ) / σ
Z = ( 46.5 - 46.2 ) / 3.2598
Z = 0.09
P ( ( X - µ ) / σ ) > ( 46.5 - 46.2 ) / 3.2598 )
P ( Z > 0.09 )
P ( X > 46.5 ) = 1 - P ( Z < 0.09 )
P ( X > 46.5 ) = 1 - 0.5359
P ( X > 46.5 ) = 0.4641
Part c)
Using Normal Approximation to Binomial
Mean = n * P = ( 60 * 0.23 ) = 13.8
Variance = n * P * Q = ( 60 * 0.23 * 0.77 ) = 10.626
Standard deviation = √(variance) = √(10.626) = 3.2598
P ( X >= 15 )
Using continuity correction
P ( X > n - 0.5 ) = P ( X > 15 - 0.5 ) =P ( X > 14.5 )
X ~ N ( µ = 13.8 , σ = 3.2598 )
P ( X > 14.5 ) = 1 - P ( X < 14.5 )
Standardizing the value
Z = ( X - µ ) / σ
Z = ( 14.5 - 13.8 ) / 3.2598
Z = 0.21
P ( ( X - µ ) / σ ) > ( 14.5 - 13.8 ) / 3.2598 )
P ( Z > 0.21 )
P ( X > 14.5 ) = 1 - P ( Z < 0.21 )
P ( X > 14.5 ) = 1 - 0.5832
P ( X > 14.5 ) = 0.4168
Part d)
P ( X < 10 )
Using continuity correction
P ( X < n - 0.5 ) = P ( X < 10 - 0.5 ) = P ( X < 9.5 )
X ~ N ( µ = 13.8 , σ = 3.2598 )
P ( X < 9.5 )
Standardizing the value
Z = ( X - µ ) / σ
Z = ( 9.5 - 13.8 ) / 3.2598
Z = -1.32
P ( ( X - µ ) / σ ) < ( 9.5 - 13.8 ) / 3.2598 )
P ( X < 9.5 ) = P ( Z < -1.32 )
P ( X < 9.5 ) = 0.0934