The sales activity at BestCar is estimated to be distributed as follows: Weekly
ID: 379315 • Letter: T
Question
The sales activity at BestCar is estimated to be distributed as follows:
Weekly Sales (cars)
Relative Frequency (probability)
0
0.02
1
0.03
2
0.05
3
0.10
4
0.15
5
0.30
6
0.20
7
0.10
8
0.05
Total 1.00
Create an Excel model that simulates 500 weeks at BestCar. It should calculate from the simulated experience the average number of cars and revenue per week and also a frequency table on car sales.
Weekly Sales (cars)
Relative Frequency (probability)
0
0.02
1
0.03
2
0.05
3
0.10
4
0.15
5
0.30
6
0.20
7
0.10
8
0.05
Total 1.00
Explanation / Answer
The given function ia a joint pmf if it satisfy the following two conditions ,
1 )
2 )
Now,
1 ) Here , all probabilities are greater than 0 i.e. for all x and y
2 )
x=1 x=2 x=3 Total
y=1 0.15 0.10 0.05 0.30
y=2 0.02 0.10 0.05 0.17
y=3 0.02 0.03 0.20 0.25
y=4 0.01 0.02 0.25 0.28
Total 0.20 0.25 0.55 1.00
Therefore,
All the conditions are satisfied
Hence , the given function is a pmf
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.