Special Assignment 1: Managing Ashland MultiComm Services Instructor: Name: Grade: Due Date: Week 5 Directions: This assignment is a modification of the case presented on page 213. Use Excel's BINOMDIST and your calculator to solve the problems below. Calculate probabilities correct to 4 or 6 decimal places. You may substitute PHStat4 for your solutions. To earn full credit for each answer, you must provide an explanation for your Excel or calculator input, or paste your PHStat4 output next to each answer or attach separate pages of your PHStat4 output for each answer. Any answer that is unaccompanied by a complete explanation or a PHStat4 printout will earn 1 out of 5 points. Total Points: 75 1. [Hint: Let = 0.02 as shown in the table for no free premium channels.] (5 points/part) a. P(X < 3) = b. P(X = 0) + P(X = 1) = c. P(X > 4) = 1 - P(X 4) = d. [Hint: Calculate P(X 4) and compare it to your answer in c. Basically, the question is asking whether it is less likely or more likely that you will get four or more subscriptions in a sample of 50 prospective customers, given that the probability of a subscription is estimated as 0.02.] Explain your reasoning. 2. [Hint: Let = 0.06 as shown in the table for two free premium channels.] ( 5 points/part) a. P(X < 3) = b. P(X = 0) + P(X = 1) c. P(X > 4) = 1 - P(X 4). d. [Hint: This question is asking you to compare the likelihood of your getting 4 or more subscribers in a sample of 50, given that the probability of a subscription is estimated as 0.06. Address sample proportions not pi values.] Talk about the comparison of probabilities in your explanation. 3. Study the table given and answer the question after you calculate four possibilities. a. (5 points) 1 free premium channel, 5 subscriptions, MAT 109 Special Assignment 2 1 = 0.04, Peirce College Faculty P(X b. 5) = (5 points) 3 free premium channels, 6 subscriptions, P(X = 0.07, 6) = 3. [continued] c. (5 points) 4 free premium channels, 6 subscriptions, P(X e. = 0.08, = 0.085, 6) = d. (5 points) 5 free premium channels, 7 subscriptions, P(X 7) = (15 points) Given all the evidence that you have collected from all your surveys of 50 prospective customers, answer the question with full explanation. Use this entire assignment not only answers to #3. [Hint: Consider AMS's profits in your answer.] How many free premium channels should the research director recommend for inclusion in the 3-For-All service? MAT 109 Special Assignment 2 2 Peirce College Faculty Sp Assign 1 Num 1 Data Sample size Probability of an event of interest 50 0.01 Statistics Mean Variance Standard deviation 0.5 0.4950 0.7036 Once you have created this using PH Stat, you can edit the probability value and Excel will update the P(X) values below. Just click on the cell and type in the new value, press enter. Binomial Probabilities Table X 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 P(X) 0.6050 0.3056 0.0756 0.0122 0.0015 0.0001 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 Use formatting options as desired to show more decimal places, the default is 4 decimal places are shown. 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 Special Assignment 1, Excel PH Stat Tips: Use menu item \"Probability and Probability Distributions\" then select Binomial