Problem 2 Binomial Distribution Unresolved Calls

Each day, a manager at a service call center takes a random sample of 10 (n) calls and asks callers whether or not their problem /issue was satisfactorily resolved. Based on a prior analysis, it is believed that the number of unresolved calls follows a binomial distribution with a mean probability (p) of unresolved calls equal to .062.

Within an MS-Excel workbook, create a worksheet named "Problem 2"

Enter n and p parameter values in two cells.

Enter a all possible K values in a column: 0,1,210.

Next to the K values, add a column with Header name Probability. Use the binom.dist function to calculate the probabilities that number of unresolved calls equals each k value prob(# unresolved calls = k). Format probabilities to be a number with 4 decimal places

Next to the Probability column, create a column with header named Cumulative Probability. Use the binom.distfunction to calculate the cumulative probabilities that number of unresolved calls are equal to or less than each k value prob(number of unresolved calls <= k). Format probabilities to be a number with 4 decimal places.

Create one column chart: number of unresolved calls by probability and number of unresolved calls. Add chart and axis titles. Make sure probabilities on the Y axis range from 0 to 1 and do not show trailing 0 values on Y axis probabilities

In a textbox, indicate which k value has the highest probability and which k value has the lowest probability.

In three separate cells, calculate the following 3 probabilities:

Prob. (number of unresolved calls <= 1),

Prob. (number of unresolved calls > 1 and <= 8) and

Prob. (number of unresolved calls > 8).

Do not refer to the computed values from step d and e. Instead, use the binom.dist function to compute cumulative probabilities. Isolate the values 1 and 8 in sperate cells (e.g. dont put 1 and 8 values in your formulas). I used a layout like this:

Enter two Excel formulas, to calculate the sum of the 3 probabilities computed in step h and in step d. In a textbox, explain why the sum of probabilities both steps equal to 1.

In an adjacent cell next to the three computed probabilities from step 8, enter three formulas using the cumulative probabilities from step d to compute the same probabilities as computed in step h.