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Read 2 more answers

According to Padgett Business Services, 20% of all small-business owners say the most important advice for starting a business i

elena-s [515]

Answer:

a) There is a 6.88% probability that none of the owners would say preparing for long hours and hard work is the most important advice.

b) There is a 1.93% probability that six or more owners would say preparing for long hours and hard work is the most important advice.

c) There is a 10.32% probability that exactly five owners would say having good financing ready is the most important advice.

d) The expected number of owners who would say having a good plan is the most important advice is 2.28

Step-by-step explanation:

Questions a), b), c) are all solved as binomial distribution problems.

Question d) is a simple calculation.

Binomial probability distribution

The binomial probability is the probability of exactly x successes on n repeated trials, and X can only have two outcomes.

$P(X = x) = C_{n,x}.\pi^{x}.(1-\pi)^{n-x}$

In which C_{n,x} is the number of different combinatios of x objects from a set of n elements, given by the following formula.

$C_{n,x} = \frac{n!}{x!(n-x)!}$

And $\pi$ is the probability of X happening.

For these problems

12 business owners were contacted, so $n = 12$ .

a. What is the probability that none of the owners would say preparing for long hours and hard work is the most important advice?

20% of all small-business owners say the most important advice for starting a business is to prepare for long hours and hard work, so $\pi = 0.2$ .

That is P(X=0) when $\pi = 0.2$ .

$P(X = x) = C_{n,x}.\pi^{x}.(1-\pi)^{n-x}$

$P(X = 0) = C_{12,0}.(0.2)^{0}.(0.8)^{12} = 0.0688$

There is a 6.88% probability that none of the owners would say preparing for long hours and hard work is the most important advice.

b. What is the probability that six or more owners would say preparing for long hours and hard work is the most important advice?

20% of all small-business owners say the most important advice for starting a business is to prepare for long hours and hard work, so $\pi = 0.2$ .

This is:

$P = P(X = 6) + P(X = 7) + P(X = 8) + P(X = 9) + P(X = 10) + P(X = 11) + P(X = 12)$

$P(X = x) = C_{n,x}.\pi^{x}.(1-\pi)^{n-x}$

$P(X = 6) = C_{12,6}.(0.2)^{6}.(0.8)^{6} = 0.0155$

$P(X = 7) = C_{12,7}.(0.2)^{7}.(0.8)^{5} = 0.0033$

$P(X = 8) = C_{12,8}.(0.2)^{8}.(0.8)^{4} = 0.0005$

$P(X = 9) = C_{12,9}.(0.2)^{9}.(0.8)^{3} = 0.00006$

$P(X = 10) = C_{12,10}.(0.2)^{10}.(0.8)^{2} = 0.000004$

$P(X = 11) = C_{12,11}.(0.2)^{11}.(0.8)^{1} = 0.0000002$

$P(X = 12) = C_{12,12}.(0.2)^{12}.(0.8)^{0} = 0.000000004$

So:

$P = P(X = 6) + P(X = 7) + P(X = 8) + P(X = 9) + P(X = 10) + P(X = 11) + P(X = 12) = 0.0155 + 0.0033 + 0.0005 + 0.000006 + 0.000004 + 0.0000002 + 0.000000004 = 0.0193$

There is a 1.93% probability that six or more owners would say preparing for long hours and hard work is the most important advice.

c. What is the probability that exactly five owners would say having good financing ready is the most important advice?

Twenty-five percent say the most important advice is to have good financing ready, so $\pi = 0.25$

$P(X = x) = C_{n,x}.\pi^{x}.(1-\pi)^{n-x}$

$P(X = 5) = C_{12,5}.(0.25)^{5}.(0.75)^{7} = 0.1032$

There is a 10.32% probability that exactly five owners would say having good financing ready is the most important advice.

d. What is the expected number of owners who would say having a good plan is the most important advice?

Nineteen percent say having a good plan is the most important advice, so that is $0.19*12 = 2.28$

The expected number of owners who would say having a good plan is the most important advice is 2.28

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Over the last three evenings Lucy received a total of 122 phone calls at the call center. The first evening she received 10 fewe

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