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Chapter 4: Q 44. (page 230)

Internet charges (2.1) Some Internet service providers (ISPs) charge companies based on how much bandwidth they use in a month. One method that ISPs use for calculating bandwidth is to find the 95th percentile of a company鈥檚 usage-based on samples of hundreds of 5-minute intervals during a month.

(a) Explain what 鈥�95th percentile鈥� means in this setting.

(b) Which would cost a company more: the 95th percentile method or a similar approach using the

98th percentile? Justify your answer.

Short Answer

Expert verified

Part (a) 95 percent of the time, the company utilises bandwidth that is less than the 95th percentile.

Part (b) Using the 98thpercentile would cost the company more.

Step by step solution

01

 Part (a) Step 1: Given information

ISPs charge businesses by calculating the bandwidth equal to the 95th percentile of a company's consumption based on hundreds of 5-minute intervals over the course of a month.

02

Part (a) Step 2: Concept

A simple random sample (SRS) of size n is made up of n people chosen from the population with an equal chance of being the sample that is actually chosen.

03

Part (a) Step 3: Explanation

As indicated in the question, Some internet service providers bill businesses based on their monthly bandwidth usage. As a result, one way used by ISPs to calculate bandwidth is to find the 95thpercentile of a company's usage based on a sample of hundreds over the course of a month. As a result, in this case, the 95thpercentile represents the bandwidth that the company consumes less than 95percent of the time. As a result, the organization frequently utilizes bandwidth that is less than the 95thpercentile.

04

Part (b) Step 1: Explanation

Some internet service providers charge businesses based on how much bandwidth they use per month, as stated in the question. As a result, one way used by ISPs to calculate bandwidth is to find the 95th company usage from a sample of hundreds over the course of a month. As a result, a similar method employing the 98th percentile will cost the organisation more because bandwidth for the 98th percentile will be higher than for the 95th percentile, and more bandwidth costs more.

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