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A delivery company's trucks occasionally get parking tickets, and based on past experience, the company plans that each truck will average 1.3 tickets a month, with a standard deviation of 0.7 tickets. a. If they have 18 trucks, what are the mean and standard deviation of the total number of parking tickets the company will have to pay this month? b. What assumption did you make in answering?

Short Answer

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a. The mean total of parking tickets the company will have to pay this month is 23.4 tickets with a standard deviation of 3.59 tickets. b. The assumptions made are that the number of tickets per truck are independent events and that each truck's behaviour follows the same distribution.

Step by step solution

01

Calculation of total mean

To obtain the total mean, we just need to multiply the mean number of tickets per truck by the total number of trucks. So, \( Mean_{\ total} = Mean \times No. \ of \ trucks = 1.3 \times 18 = 23.4 \) tickets
02

Calculation of total standard deviation

The standard deviation of a sum of independent variables, such as tickets per truck here, is the square root of the sum of the squares of the standard deviations, hence the formula: \( Std Dev_{\ total} = \sqrt {Number \ of \ trucks} \times Std \ Deviation = \sqrt{18} \times 0.7 = 3.59 \) tickets
03

Assumptions

It's assumed in this exercise that the number of tickets received by each truck is an independent event and that every truck behaves exactly the same way (follows the same distribution). It doesn’t matter how many tickets one truck gets, it won’t affect how many tickets another truck gets. Also, we assume that the mean and standard deviation provided are precise and valid for all trucks.

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Key Concepts

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

Mean and Standard Deviation
When tackling statistics problems, two of the foundational concepts that come into play are the mean and standard deviation. The mean, often referred to as the average, is a measure of the central tendency of a dataset. To calculate the mean, you sum up all the data points and divide by the number of points. In the context of our delivery company example, the mean number of parking tickets per truck is given as 1.3.

The standard deviation is a measure that tells us how much variation from the mean exists within a set of data. In simpler terms, it indicates how spread out the numbers are in the dataset. A low standard deviation means that the data points are very close to the mean, while a high standard deviation signifies that the data is more spread out. For our delivery company, a standard deviation of 0.7 tickets implies that the number of tickets per truck doesn't vary wildly from the average.

When the delivery company wants to calculate the mean and standard deviation for the total number of parking tickets for all 18 trucks, it’s not just a simple addition. For the mean, it’s appropriate to multiply the mean per truck by the number of trucks, yielding a total mean of 23.4. However, the standard deviation doesn't follow the same rule due to the way the variability compounds across multiple trucks. The calculation of total standard deviation involves taking not just the sum but the square root of the sum of the squares of the standard deviations of all those independent events - leading to a total standard deviation of 3.59 tickets for all the trucks combined.
Independence Assumption
The independence assumption is crucial in many statistics problems as it dictates how different variables can be expected to interact with one another. If two events are independent, the occurrence of one does not affect the probability of the occurrence of the other. This concept is applied in our scenario wherein we presume that the number of parking tickets received by any one truck does not influence the number of tickets any other truck receives.

In the example given, we assumed that the 18 trucks operate independently in terms of how likely they are to receive a parking ticket. It means that if Truck A gets ticketed, it doesn't change the odds of Truck B receiving a ticket. This assumption underpins our calculation of the total standard deviation and also implies that the behavior of one truck—how often it gets ticketed—is not connected to the behavior of another truck.

It's important to validate the independency assumption, especially if conducting an analysis that relies on it. If in reality, the trucks' chances of receiving tickets were not independent—for example, if they often drove in convoy or shared common routes, and thus were subject to the same parking constraints – our statistical methods and conclusions could be significantly flawed. Hence, questioning the independence of events can be a key part of analyzing data correctly.
Probability Distribution
Understanding probability distribution is paramount when working with statistics. A probability distribution provides a list or description of all the possible outcomes of a random variable, along with the probability that each outcome will occur. In a sense, it lays out the 'landscaping' of probability for a given event or set of events.

There are different types of probability distributions, like binomial, normal, and Poisson, each of which models different scenarios and types of data. The way in which the delivery company tracks the number of tickets its trucks receive over a month suggests that they are using a type of probability distribution to predict future occurrences, likely based on past data.

The mean and standard deviation are parameters that help to characterize a probability distribution. In our case, we are most likely dealing with a Poisson distribution, indicative of the average number of tickets (1.3) received by the trucks in a fixed interval of time (per month). The company uses these parameters to make informed decisions about future occurrences, in this case, budgeting for the expected total number of tickets. It’s important to note, however, that if the independence assumption were to be violated, the chosen probability distribution model might no longer be valid.

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