# A plan for an executive travelers’ club has been developed

## Problem 106E Chapter 3

Probability and Statistics for Engineering and the Sciences | 9th Edition

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Problem 106E

A plan for an executive travelers’ club has been developed by an airline on the premise that 10% of its current customers would qualify for membership. a.? ?Assuming the validity of this premise, among 25 randomly selected current customers, what is the probability that between 2 and 6 (inclusive) qualify for membership? b.? ?Again assuming the validity of the premise, what are the expected number of customers who qualify and the standard deviation of the number who qualify in a random sample of 100 current customers? c.? ?Let ?X ?denote the number in a random sample of 25 current customers who qualify for membership. Consider rejecting the company’s premise in favor of the claim that p > .10 if x ? 7. What is the probability that the company’s premise is rejected when it is actually valid? d.? ?Refer to the decision rule introduced in part (c). What is the probability that the company’s premise is not rejected even though p = .20 (i.e., 20% qualify)?

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Problem 106E Answer: Step1: We have A plan for an executive travelers’ club has been developed by an airline on the premise that 10% of its current customers would qualify for membership. We need to find, a. Assuming the validity of this premise, among 25 randomly selected current customers, what is the probability that between 2 and 6 (inclusive) qualify for membership b. Again assuming the validity of the premise, what are the expected number of customers who qualify and the standard deviation of the number who qualify in a random sample of 100 current customers c. Let X denote the number in a random sample of 25 current customers who qualify for membership. Consider rejecting the company’s premise in favor of the claim that p > 0.10 if x 7. What is the probability that the company’s premise is rejected when it is actually valid d. Refer to the decision rule introduced in part (c). What is the probability that the company’s premise is not rejected even though p = .20 (i.e., 20% qualify) Step2: a). We have n = 25 and p = 10% = 0.10 Let “X” be random variable it follows binomial distribution with parameter “n, p” X ~B(n, p) X ~B(25, 0.1) The probability mass function of X is given by n x n-x p(x) = C x q , x = 0,1,2,...,n With mean E(x) = np and Var(x) = np(1 - p) The probability that between 2 and 6 qualify for membership is given by P(between 2 and 6 qualify for membership) = P(2X6) P(2X6) = P(X = 2) + P(X = 3) + ….+ P(X = 6) = { C (0.1) (0.9)252+ C (0.1) (0.9) 253 + C (0.1) (0.9) 254+….+ C5 2 6 256 3 4 6 (0.1) (0.9) } P(2X6) i s obtained from Excel by using the formula “=Binomdist(x,n,p,FALSE)” “=Binomdist(0 to 6,25,0.1,FALSE)” x P(2X6) 2 0.265888144 3 0.226497308 4 0.138415021 5 0.064593677 6 0.023923584 sum 0.719317733 Therefore,The probability that between 2 and 6 qualify for membership is 0.7193. Step3: b). We have n = 100...

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##### ISBN: 9780321629111

The full step-by-step solution to problem: 106E from chapter: 3 was answered by , our top Statistics solution expert on 05/06/17, 06:21PM. This textbook survival guide was created for the textbook: Probability and Statistics for Engineering and the Sciences, edition: 9. This full solution covers the following key subjects: qualify, premise, customers, current, Company. This expansive textbook survival guide covers 18 chapters, and 1582 solutions. Probability and Statistics for Engineering and the Sciences was written by and is associated to the ISBN: 9780321629111. The answer to “A plan for an executive travelers’ club has been developed by an airline on the premise that 10% of its current customers would qualify for membership. a.? ?Assuming the validity of this premise, among 25 randomly selected current customers, what is the probability that between 2 and 6 (inclusive) qualify for membership? b.? ?Again assuming the validity of the premise, what are the expected number of customers who qualify and the standard deviation of the number who qualify in a random sample of 100 current customers? c.? ?Let ?X ?denote the number in a random sample of 25 current customers who qualify for membership. Consider rejecting the company’s premise in favor of the claim that p > .10 if x ? 7. What is the probability that the company’s premise is rejected when it is actually valid? d.? ?Refer to the decision rule introduced in part (c). What is the probability that the company’s premise is not rejected even though p = .20 (i.e., 20% qualify)?” is broken down into a number of easy to follow steps, and 166 words. Since the solution to 106E from 3 chapter was answered, more than 260 students have viewed the full step-by-step answer.

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