In: Statistics and Probability
A company publishes statistics concerning car quality. The initial quality score measures the number of problems per new car sold. For one year, Car A had .79 problems per car and car B had .26 problems per car. Let the random variable X be equal to the number of problems with a newly purchased model A car. Complete (a) through (c) below
If you purchased a model A car, what is the probability that the new car will have zero problems?
If you purchased a model A car, what is the probability that the new car will have two or fewer problems?
Compare your answers in (a) and (b) to those for car B.
Because Car B has a (Higher/lower) mean rate of problems per car than Car A, the probability of a randomly selected Car B having zero problems and the probability of no more than two problems are both (higher/lower) than for Car A.
Using Poisson distribution
Let X be the number of probalems per car of model A
Then X follow Poisson with
The probability mass function of X is
, x= 0,1,2,....
= 0.9540
Probability that new car of model A has zero problems = 0.4538
Probability that new car of model A has 2 or fewer problems = 0.9540
Let Y be the number of probalems per car of model B
Then Y follow Poisson with
The probability mass function of Y is
, y= 0,1,2,....
= 0.9976
Probability that new car of model B has zero problems = 0.7711
Probability that new car of model B has 2 or fewer problems = 0.9976
Comaprison
Car B (0.26)has a LOWER mean rate of problems per car than car A(0.79) , probability that a randomly selected car B has zero problems and the probability of no more than 2 problems are both HIGHER than for car A .
Note : Probability that new car of model B has zero problems > Probability that new car of model A has zero problems
Probability that new car of model B has 2 or fewer problems > Probability that new car of model A has 2 or fewer problems