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BUS 217 Chapter 6

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Discrete Probability Distributions Chapter 6 6-1 Copyright ©2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objectives LO6-1 LO6-2 LO6-3 LO6-4 LO6-5 LO6-6 6-2 Identify the characteristics of a probability distribution Distinguish between discrete and continuous random variables Compute the mean, variance, and standard deviation of a discrete probability distribution Explain the assumptions of the binomial distribution and apply it to calculate probabilities Explain the assumptions of the hypergeometric distribution and apply it to calculate probabilities Explain the assumptions of the Poisson distribution and apply it to calculate probabilities Copyright ©2021 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. What is a Probability Distribution? PROBABILITY DISTRIBUTION A listing of all the outcomes of an experiment and the probability associated with each outcome. CHARACTERISTICS OF A PROBABILITY DISTRIBUTION 1. The probability of a particular outcome is between 0 and 1 inclusive. 2. The outcomes are mutually exclusive. 3. The list of outcomes is exhaustive. So the sum of the probabilities of the outcomes is equal to 1.  Example: A drug manufacturer may claim a treatment will cause weight loss for 80% of the population. This claim could be tested by a consumer protection ag ...
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