Standard deviation of the given probability distribution

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Complete Problem 18 in Chapter 4 on page 159. REFERENCE:Albright, S. C, & Winston, W. L. (2017). Business Analytics: Data Analysis and Decision Making (6th ed.). Boston, MA: Cengage Learning

Chapter 4: Probability and Probability Distributions

Chapter 5: Normal, Binomial, Poisson, and Exponential Distributions

Chapter 6: Decision Making under Uncertainty

A quality inspector picks a sample of 15 items at random from a manufacturing process known to produce 10% defective items. Let X be the number of defective items found in the random sample of 15 items. Assume that the condition of each item is independent of that of each of the other items in the sample.

The probability distribution of X is provided in the file P04_18.xlsx.

Use simulation to generate 500 values of this random variable X.

Calculate the mean and standard deviation of the simulated values. How do they compare to the mean and standard deviation of the given probability distribution? (Albright, 2017, p. 159).

PLEASE GIVE AN EXPLANATION OF THE ANSWERS

REFERENCE: Albright, S. C, & Winston, W. L. (2017). Business Analytics: Data Analysis and Decision Making (6th ed.). Boston, MA: Cengage Learning

Chapter 4: Probability and Probability Distributions

Chapter 5: Normal, Binomial, Poisson, and Exponential Distributions

Chapter 6: Decision Making under Uncertainty

Verified Expert

This task deals with the simulation techniques in excel. Random number generation technique was used in excel to generate a random sample of 500 numbers. Binomial distribution was used to generate the 500 random numbers. On comparing the sample mean and population mean, the assumption of central limit theorem is satisfied

Reference no: EM131336823

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inf1336823

1/9/2017 5:18:49 AM

Much appreciated such a great amount to all of you - lifeline without a doubt and I'll be back again later on and in addition suggesting your administrations. Have an awesome day and fare thee well. (Task got and an upbeat client)

inf1336823

1/9/2017 5:18:19 AM

You need to show how you arrived at the simulated values in column D. Run the RAND() function 500 times to meet this requirement. Then you want to use the VLOOKUP function to associate a cumulative probability to the number of defects. After you complete the exercise, you want to go a bit further into your description of the differences between the probability table and the simulation table. What do differences between the two outcomes tell us? What should we do about the differences (possible additional actions)? Why do we need to run the simulation in the first place? The central limit theorem in it's shortest form states that the sampling distribution of the sampling means approaches a normal distribution as the sample size gets larger, regardless of the shape of the population distribution.

inf1336823

1/9/2017 5:18:08 AM

Could you please have the writer answer the following questions: For your output, you have a mean of 1.50 and a standard deviation of 1.162, not 0.056. Based on these values, the distribution is positively skewed and will not follow the assumption of the central limit theorem. Even with a standard deviation of 0.056, we would expect 99.974% of the values to fall between 0 and 1.668. Based on the probability table given, the cumulative probability of 2 defects is only 54.9%. The data set is positively skewed because there are additional data point outside of the mean plus three standard deviations. Thoughts? You used an interesting technique to produce the 500 simulated values (data analysis / random number generation). As a part of the tip portion of this assignment, can you share with other students the values you used to produce the simulated numbers (variables, distribution, pvalue, etc.)?

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