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Private Investigation: Locating People Old Friends Information Service is a California company that is in the business of finding addresses of long-lost friends. Old Friends claims to have a \(70 \%\) success rate (Source: Wall Street Journal). Suppose that you have the names of six friends for whom you have no addresses and decide to use Old Friends to track them. (a) Make a histogram showing the probability of \(r=0\) to 6 friends for whom an address will be found. (b) Find the mean and standard deviation of this probability distribution. What is the expected number of friends for whom addresses will be found? (c) Quota Problem How many names would you have to submit to be \(97 \%\) sure that at least two addresses will be found?

Short Answer

Expert verified
For 6 friends: Mean is 4.2, SD is 1.13. Submit about 3 names for 97% confidence.

Step by step solution

01

Understanding the Problem

Old Friends claims a success rate of finding addresses of 70% for the friends submitted. We are given 6 friends, and we need to find the probability that addresses will be found for 0 to 6 friends, the mean and standard deviation, and the number required to find at least two addresses with 97% certainty.
02

Define the Random Variable

Let the random variable \( X \) represent the number of friends for whom an address is found. \( X \) can take values from 0 to 6, and follows a binomial distribution with parameters \( n = 6 \) and \( p = 0.7 \).
03

Calculate Binomial Probabilities

The probability mass function for a binomial distribution is given by \( P(X = r) = \binom{n}{r} p^r (1-p)^{n-r} \). Use this formula to determine \( P(X = r) \) for \( r = 0, 1, 2, 3, 4, 5, \) and 6.
04

Drawing the Histogram

Once we have the probabilities calculated, we draw a histogram with \( r \) values (0 to 6) on the x-axis and corresponding probabilities on the y-axis. Each bar represents \( P(X = r) \).
05

Calculate Mean and Standard Deviation

The mean of a binomial distribution is \( \mu = np \) and the standard deviation is \( \sigma = \sqrt{np(1-p)} \). Calculate these using \( n = 6 \) and \( p = 0.7 \).
06

Find Expected Number of Addresses

The expected number is simply the mean \( \mu = np \).
07

Solving the Quota Problem

To solve the quota problem, we use the cumulative distribution function to find \( n \) such that \( P(X \geq 2) \geq 0.97 \). This involves solving for \( n \) in the inequality \( 1 - [P(X = 0) + P(X = 1)] \geq 0.97 \), where \( X \) follows a binomial distribution with parameters \( n \) and \( p = 0.7 \).

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Key Concepts

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

Binomial Distribution
A binomial distribution is a type of probability distribution that summarizes the likelihood of a value taking one of two independent states. Imagine flipping a coin multiple times. Each flip is independent, and the outcome is either heads or tails. In this context, our interest lies in calculating the probability of a certain number of tails out of a series of coin flips. This is similar to our exercise, where "finding an address" is a 'success' akin to getting a tail.

For a distribution to be binomial, it must satisfy two conditions:
  • There are a set number of trials, known as "n"
  • Each trial has only two outcomes – "success" or "failure"
  • The probability of success, "p", is the same for each trial
  • The trials are independent
In the provided exercise, we're dealing with 6 friends, making the task of finding their addresses synonymous with our trials. The probability of finding an address is set at 70% (or 0.7). The results of this setup generate a binomial distribution.
Probability Mass Function
The Probability Mass Function (PMF) is essential when working with discrete random variables. It helps determine the probability that a random variable, like the number of addresses found, equals a specific value. In simple terms, the PMF gives us the probability of each possible outcome for a random variable.

In a binomial context, the PMF is calculated using the formula:\[ P(X = r) = \binom{n}{r} p^r (1-p)^{n-r} \]Here:
  • \( \binom{n}{r} \) represents the combination of "n" trials taken "r" at a time
  • \( p \) is the probability of success
  • \((1-p)\) is the probability of failure
  • \(r\) is the number of successful trials
To apply this in our exercise, you would calculate \( P(X = r) \) for each possible number of addresses found, from 0 to 6. The PMF allows us to chart the probability that "r" addresses will be found, helping to visualize data and make informed predictions.
Histogram
A histogram visually represents the probability distribution of a dataset. It's particularly helpful in displaying and understanding binomial distributions in the context of our exercise. Each bar in a histogram shows the frequency, or probability, of a specific outcome.

To make a histogram for the given problem:
  • Place the number of addresses found (0 through 6) on the x-axis.
  • Map the corresponding probabilities, as calculated by the PMF, on the y-axis.
This creates a series of bars, each representing how likely you are to find a certain number of addresses. The taller the bar, the higher the probability of that outcome. Histograms are excellent tools for revealing patterns, like whether more successes are likely or if they occur around an expected value, giving a visual insight into the distribution.
Standard Deviation
Standard deviation is a measure that tells us how much the individual outcomes of a distribution deviate from the mean (average) outcome. In a set of trials, it’s highly informative to know whether the values tend to cluster close to the mean or spread out widely.

For a binomial distribution, the standard deviation \( \sigma \) is calculated as:\[ \sigma = \sqrt{np(1-p)} \]Where:
  • \( n \) is the number of trials
  • \( p \) is the probability of success for each trial
  • \((1-p)\) is the probability of failure
In our problem:
  • \( n = 6 \) (six friends)
  • \( p = 0.7 \) (probability of finding each address)
The standard deviation helps students understand the variability of the outcomes around the mean number of addresses found. A smaller standard deviation implies that the outcomes are tightly bunched around the mean, while a larger value indicates wider dispersion.

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Most popular questions from this chapter

Binomial Distribution: Control Charts This problem will be referred to in the study of control charts (Section 6.1). In the binomial probability distribution, let the number of trials be \(n=3\), and let the probability of success be \(p=0.0228\). Use a calculator to compute (a) the probability of two successes. (b) the probability of three successes. (c) the probability of two or three successes.

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