/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Problem 37 A grocery supplier believes that... [FREE SOLUTION] | 91Ó°ÊÓ

91Ó°ÊÓ

A grocery supplier believes that in a dozen eggs, the mean number of broken ones is 0.6 with a standard deviation of 0.5 eggs. You buy 3 dozen eggs without checking them. a. How many broken eggs do you expect to get? b. What's the standard deviation? c. What assumptions did you have to make about the eggs in order to answer this question?

Short Answer

Expert verified
a. The expected number of broken eggs is 1.8. b. The standard deviation is 0.87. c. It was assumed that the broken eggs occur randomly and independently with a constant mean and standard deviation.

Step by step solution

01

Determine the expected number of broken eggs

First, set up the expectation formula. The expected number of broken eggs for one dozen is 0.6. Since three dozens are being bought, the expected number of broken eggs will be \(0.6 \times 3 = 1.8\).
02

Determine the standard deviation

The standard deviation for one dozen eggs is 0.5. As you have bought three dozens, the standard deviation increases but not linearly, it does so by a factor of the square root of 3 according to the formula for the standard deviation of the sum of random variables which are independent. Therefore, the new standard deviation will be \(0.5 \times \sqrt{3} = 0.87\) (rounded to the nearest hundredths place).
03

Identify Assumptions

The main assumptions made here are that the broken eggs occur randomly and independently of each other, and that both the number of broken eggs and their standard deviation are constant with each dozen bought. Additionally, it’s been assumed that past data (mean and standard deviation provided) will hold true for the purchase.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91Ó°ÊÓ!

Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Standard Deviation
The standard deviation is a statistical measurement that sheds light on the amount of variation or spread in a set of data points. It illustrates how much individual data points differ from the average, or mean, value of the data set.

For example, in the context of the grocery supplier's dozen eggs, where the standard deviation is given as 0.5, this suggests that the number of broken eggs in any given dozen will typically vary from the mean (0.6 broken eggs) by 0.5 eggs. A smaller standard deviation would signify that the broken eggs count is consistently close to the mean, while a larger standard deviation indicates more variability.

When we purchase multiple dozens of eggs, we must consider the standard deviation of the total number of broken eggs. Since each dozen is assumed to be independent of the others, we use the property of standard deviation for independent random variables to find the total variability, by multiplying the single dozen’s standard deviation by the square root of the number of dozens.
Expected Value
The expected value, or mean, of a random variable provides a measure of the center or the average outcome we might anticipate. It represents what one expects to happen on average over a large number of trials or instances.

For instance, in our grocery supplier example, the expected number of broken eggs in one dozen is 0.6. When buying three dozens, we intuitively multiply this expected value by 3, yielding an expected number of broken eggs to be 1.8. It's crucial to comprehend that the expected value is a theoretical average representing what one might predict in the long run and not necessarily what will happen in every purchase.
Random Variables
A random variable is a variable that takes on different numerical values, each associated with a probability, determined by a random phenomenon. They are fundamental in the realm of probability and statistics as they model outcomes of random processes.

In our problem, the number of broken eggs within a dozen is a random variable because it's uncertain and can vary from dozen to dozen. It could be 0, 1, 2, and so forth, each with its own likelihood. The average and variability of this random variable are described by its expected value (mean) and standard deviation, respectively.
Independent Events
Independent events in probability are scenarios where the occurrence of one event does not influence another. Understanding the independence of events is essential for calculating probabilities and, as seen in our example, for determining standard deviation when multiple events are involved.

With the egg example, it is assumed that each dozen of eggs is independent of the others; the number of broken eggs or lack thereof in one dozen has no bearing on the number of broken eggs in another. This assumption is crucial for calculations involving multiple dozens, as it allows us to combine expected values and expand standard deviation correctly for the overall purchase.

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

An insurance policy costs \(\$ 100\) and will pay policyholders \(\$ 10,000\) if they suffer a major injury (resulting in hospitalization) or \(\$ 3000\) if they suffer a minor injury (resulting in lost time from work). The company estimates that each year 1 in every 2000 policyholders may have a major injury, and 1 in 500 a minor injury only. a. Create a probability model for the profit on a policy. b. What's the company's expected profit on this policy? c. What's the standard deviation?

The life span of a calculator battery is Normally distributed with a mean of 45 hours and a standard deviation of 5 hours. What is the probability that a battery lasts more than 53 hours?

An employer pays a mean salary for a 5-day workweek of \(\$ 1250\) with a standard deviation of \(\$ 129 .\) On the weekends, his salary expenses have a mean of \(\$ 450\) with a standard deviation of \(\$ 57 .\) What is the mean and standard deviation of his total weekly salaries?

An insurance company estimates that it should make an annual profit of $$\$ 150$$ on each homeowner's policy written, with a standard deviation of $$\$ 6000$$. a. Why is the standard deviation so large? b. If it writes only two of these policies, what are the mean and standard deviation of the annual profit? c. If it writes 10,000 of these policies, what are the mean and standard deviation of the annual profit? d. Is the company likely to be profitable? Explain. e. What assumptions underlie your analysis? Can you think of circumstances under which those assumptions might be violated? Explain.

Kids A couple plans to have children until they get a girl, but they agree that they will not have more than three children even if all are boys. (Assume boys and girls are equally likely.) a. Create a probability model for the number of children they might have. b. Find the expected number of children. c. Find the expected number of boys they'll have.

See all solutions

Recommended explanations on Math Textbooks

View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.