STATISITCS

Question 2: [9} After starting MBA. you get one of your rst customers, a coal mining company that supplies coal to Eskcm power stations. Your client says according to their contract each lump of goal has to be classied as Anthracite, which is the highest grade of coal quality, otherwise it could disrupt the functioning of the power stations. The client states that they are concerned that. consistently. 5% of the lumps of coal they supply are not of the correct quality. at Your client asks you if you think the above represents a specic type of distribution. Explain the type of distribution to your client and substantiate your answer. {2] b] Your client says they have neyer understood the concepts of Discrete and Continuous Random Variables. Explain and cite examples of each using coal. {2] c] It you were to sample 200 lumps of coal. how many would expect to not qualify as Anthracite and what would the standard deyiation be? {2} d] Your client informs you that they are ccncemed about the quality as their contract with Esltorn states that if more than 6% of the lumps of coal that is supplied are not of the correct quality then they will incur penalties. Should your client be concerned? Discuss in terms of the probability of penalties being incurred. {3}