What are the 4 characteristics of a binomial experiment? Can we use a binomial distribution to model this process? What is the probability that the entire batch unnecessarily has to be tested if in fact 95% of its laptops conform to specifications?

Applied statistics in business and economics

What are the 4 characteristics of a binomial experiment?

Can we use a binomial distribution to model this process?

What is the probability that the entire batch unnecessarily has to be tested if in fact 95% of its laptops conform to specifications?

• (Hint: Use Excels =BINOMDIST() function to find the probability)

What is the probability that the batch is incorrectly accepted if only 75% of its laptops actually conform to specifications?

What situations in your organization might this type of analysis apply to? Explain.

Learning Material: Doane, D., & Seward, L. (2022). Applied statistics in business and economics (7th ed.). McGraw-Hill.