Thread: Probability distribution table

The question is as follows:
A wholesaler buys items at £25 each. Then sells this items in batches of 8 to the retailer at price of £36 per item. On average there are 25 faulty items in a thousand items.

Construct the probability distribution table for number of faulty items in a batch of 8 items.

Any help will be highly appreciated. thanks alot in advance

Originally Posted by Maz

The question is as follows:
A wholesaler buys items at £25 each. Then sells this items in batches of 8 to the retailer at price of £36 per item. On average there are 25 faulty items in a thousand items.

Construct the probability distribution table for number of faulty items in a batch of 8 items.

Any help will be highly appreciated. thanks alot in advance

The number of faulty items in a batch has a binomial distribution. So:

Pr(r faulty in batch of n, with proportion of faultys p)=n!/[r! (n-r)!] p^r (1-p)^(n-r).

here n=8, and p=0.025. So compile a table of the above probabilities for r=0..8.

RonL

thx alot bro i have done it now. much appreciated