Instruction 5-8
A major airline keeps a record of the number of mishandled bags per 1,000 customers.In 2011,the airline had 4.06 mishandled bags per 1,000 customers.Assume that the number of mishandled bags has a Poisson distribution.
-What type of probability distribution will most likely be used to analyse the number of cars with defective radios in the following problem? From an inventory of 48 new cars being shipped to local dealerships,corporate reports indicate that 12 have defective radios installed.The sales manager of one dealership wants to predict the probability out of the 8 new cars it just received that,when each is tested,no more than 2 of the cars have defective radios.
A)Binomial distribution.
B)Poisson distribution.
C)Hypergeometric distribution.
D)None of the above.

Question

Quizplus · Accepted Answer

The hypergeometric distribution is appropriate when the population is finite and the sample size is small relative to the population size. In this case, the inventory of new cars being shipped to local dealerships is finite (48), and the sales manager is selecting a small sample of 8 cars from that finite population. The binomial distribution is appropriate when there are only two possible outcomes (e.g. success or failure), each trial is independent, and the probability of success remains constant from trial to trial. The Poisson distribution is appropriate for count data where the occurrences are rare and independent, and the mean rate of occurrence is known. However, in the given problem, there are more than two possible outcomes (e.g. 0, 1, 2 defective cars out of 8), and the occurrences are not rare but rather depend on the finite population size.

Instruction 5-8 a Major Airline Keeps a Record of the Number of Number