Quantitative Analysis: Statistic question

timer Asked: May 14th, 2013

Question description

“MagTek” electronics has developed a smart phone that does things that no other phone yet released into the market-place will do. The marketing department is planning to demonstrate this new phone to a group of potential customers, but is worried about some initial technical problems which have resulted in 0.1% of all phones malfunctioning. The marketing executive is planning on randomly selecting 100 phones for use in the demonstration but is worried because it is very important that every single one functions OK during the demonstration. The executive believes that whether or not any one phone malfunctions is independent of whether or not any other phone malfunctions and is convinced that the probability that any one phone will malfunction is definitely 0.001. Assuming the marketing executive randomly selects 100 phones for use in the demonstration:

(a) What is the probability that no phones will malfunction? [If you use any probability distribution/s, you are required justify the requirements for particular distributions are satisfied] 

(b) What is the probability that at most one phone will malfunction?

(c) The executive has decided that unless the probability of there being no malfunctions is greater than 90%, he will cancel the demonstration. Should he cancel the demonstration or not? Explain your answer.

Studypool has helped 1,244,100 students
flag Report DMCA
Similar Questions
Hot Questions
Related Tags

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors