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Get Full Access to Statistics For Business And Economics - 12 Edition - Chapter 3 - Problem 18e
Get Full Access to Statistics For Business And Economics - 12 Edition - Chapter 3 - Problem 18e

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Solved: PIN pad shipments. Personal identification number

ISBN: 9780321826237 51

Solution for problem 18E Chapter 3

Statistics for Business and Economics | 12th Edition

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Statistics for Business and Economics | 12th Edition

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Problem 18E

Problem 18E

PIN pad shipments. Personal identification number (PIN) pads are devices that connect to point-of-sale electronic cash registers for debit and credit card purchases. Refer to The Nilson Report (Oct. 2008) listing of the volume of PIN pad shipments by manufacturers worldwide, Exercise 2.7 (p. 49). Recall that for the 12 manufacturers listed in the table, a total of 334,039 PIN pads were shipped. Suppose you randomly select one of these PIN pads and identify the manufacturer.

 Manufacturer Number Shipped (units) Bitel 13,500 CyberNet 16,200 Fujian Landi 119,000 Glintt (ParaRede) 5,990 Intelligent 4,562 KwangWoo 42,000 Omron 20,000 Pax Tech. 10,072 ProvencoCadmus 20,000 SZZT Electronics 67,300 Toshiba TEC 12,415 Urmet 3,000

Source: Data from The Nilson Report, No. 912, October 2008 (p. 9).

a. Find the probability that the PIN pad is shipped by either Fujian Landi or SZZT Electronics.

b. Suppose that 1,000 of the PIN pads shipped were found to be defective. Find the probability that the PIN pad selected is one of the defectives.

Step-by-Step Solution:
Step 1 of 3

Solution

Step1 of 3:

Given the 12 manufactures are listed in the given table.

 Manufacturer Number Shipped (units) Bitel 13,500 CyberNet 16,200 Fujian Landi 119,000 Glintt (ParaRede) 5,990 Intelligent 4,562 KwangWoo 42,000 Omron 20,000 Pax Tech. 10,072 ProvencoCadmus 20,000 SZZT Electronics 67,300 Toshiba TEC 12,415 Urmet 3,000

Step2 of 3:

a). We need to find the probability that the PIN pad is shipped by either Fujian Landi or SZZT Electronics.

Let us define events:

B = bitel

C = cybernet

G = glint(pava rede)

I = intelligent

K = K wang woo

O = Omron

PT = Pax Tech

S = SZZT Electronics

T = Toshiba TEC

U = Urmet

The related probabilities are given below table:

 Manufacturer Number Shipped (units) Probability Bitel 13,500 0.041 CyberNet 16,200 0.049 Fujian Landi 119,000 0.357 Glintt (ParaRede) 5,990 0.018 Intelligent 4,562 0.014 KwangWoo 42,000 0.126 Omron 20,000 0.06 Pax Tech. 10,072 0.031 ProvencoCadmus 20,000 0.06 SZZT Electronics 67,300 0.202 Toshiba TEC 12,415 0.038 Urmet 3,000 0.009 Total 334,039

Where,

Probability column is calculated by using the following method:

P(B) =

= 0.041

And,

P(C) =

= 0.049

And so on.

Now,

The probability that the PIN pad is shipped by either Fujian Landi or SZZT Electronics is given by:

Step 2 of 3

Step 3 of 3