business stat final 4 pages

Using the ROI data set:

1. If we select 7 colleges from a major and then record whether they are of ‘School Type’ ‘Private’ or not, is this experiment a binomial one? Why or why not?

Yes, the experiment is a binomial in nature.

The binomial distribution (experiment) is a type of distribution in statistics that has two possible outcomes (the prefix “bi” means two, or twice).

The experiment is Binomial since it meets the following criteria:

1. There are a fixed number of trials (a fixed sample size). In the case above, if a major is selected (e. g engineering or business) there are fixed number of trials (sample size) i.e. 20.

2. On each trial, the event of interest either occurs or does not. In the experiment above, the event of interest (‘Private’) occurs when the observed event is “Private” and does not occur if the outcome is “Public”.

3. The probability of occurrence (or not) is the same on each trial for each major choosen.

4. Trials are independent of one another. Each experiment is independent of the preceding one in this case.

The two events, of selecting from a major (engineering and business) are independent; therefore the probability of college picked from the column for ‘School Type’ is ‘Private’ shall be presented independently for each major with the probability of success in all the seven be represented as follows: