Quanitative Methods

Week 2

Marty Pedicini

October 25, 2015

QMB5355

Dr. Miner

Running Head:  Week 2                                                                                                                                  Page 1

2.  A company that franchises coffee houses conducted taste tests for a new coffee product.  The company prepared four blends and randomly chose individuals to do a taste test and state which of the four blends they liked best.  Results of the taste test for 100 individuals are given.

Blend                                        Taste-Testers’ Preference

1. 20
2. 30
3. 35
4. 15

1. Define the experiment being conducted.  How many times was it repeated?

Choose people randomly, have them taste and then give their preference.

1. Prior to conducting the experiment, it is reasonable to assume preferences for the four blends are equal.  What probabilities would you assign to the experimental outcomes prior to conducting the taste test, what probabilities would you assign to the experimental outcomes?  What method did you use?

 Assign a ¼ probability to each blend.  I used the classical method.

1. After conducting the taste test, what probabilities would assign to the experimental outcomes?  Which method did you use?

Blend                            Probability

1. .20
2. .30
3. .35
4. .15

Relative frequency method was used here.

6. A sample of 100 customers of Montana Gas and Electric resulted in the following frequency distribution of monthly charges.

               Amount ($)                                   Number

                    0-49                                               13

                   50-99                                              22

                 100-149                                            34

                  150-199                                         26

                 200-249                                         5

Running Head:  Week 2                                                                                                                                    Page 2

1. Let A be the event that monthly charges are $150 or more. Find P(A).

P(A)        = P(150 - 199) + P(200 and over)

                        = [pic 1]

                        = 0.31

1. Let B be the event that monthly charges are less than $150.  Find P(B).

P(B) = P(less than 50) + P(50  - 99) + P(100 - 149)