Math Problem Statement

Please solve

In the following problem, check that it is appropriate to use the normal approximation to the binomial. Then use the normal distribution to estimate the requested probabilities. It is known that 78% of all new products introduced in grocery stores fail within 2 years. If a grocery store chain introduces 62 new products, find the following probabilities: (a) within 2 years 47 or more fail (b) within 2 years 58 or fewer fail (c) within 2 years 15 or more succeed (d) within 2 years fewer than 10 succeed

Solution

To solve this problem, we’ll use the normal approximation to the binomial distribution since the problem asks for it and also implies that it may be appropriate given certain conditions.

Step 1: Verify the conditions for normal approximation

For the normal approximation to apply, both npnp and n(1p)n(1 - p) should be greater than 5, where:

  • n=62n = 62 (total number of products),
  • p=0.78p = 0.78 (probability of failure).

Calculating these values:

  • np=62×0.78=48.36np = 62 \times 0.78 = 48.36,
  • n(1p)=62×0.22=13.64n(1 - p) = 62 \times 0.22 = 13.64.

Since both values are greater than 5, the normal approximation is appropriate.

Step 2: Set up the normal approximation parameters

The binomial distribution XBinomial(n=62,p=0.78)X \sim \text{Binomial}(n = 62, p = 0.78) can be approximated by a normal distribution with:

  • Mean μ=np=48.36\mu = np = 48.36,
  • Standard deviation σ=np(1p)=48.36×0.223.2586\sigma = \sqrt{np(1 - p)} = \sqrt{48.36 \times 0.22} \approx 3.2586.

Step 3: Solve each part using the normal distribution

(a) Probability that 47 or more fail

We need P(X47)P(X \geq 47). For the continuity correction, this becomes P(X46.5)P(X \geq 46.5).

Using the normal approximation: Z=46.548.363.25860.5738Z = \frac{46.5 - 48.36}{3.2586} \approx -0.5738 Looking up this Z-score in the standard normal table, we get P(Z0.5738)0.716P(Z \geq -0.5738) \approx 0.716.

(b) Probability that 58 or fewer fail

We need P(X58)P(X \leq 58). For the continuity correction, this becomes P(X58.5)P(X \leq 58.5).

Using the normal approximation: Z=58.548.363.25863.116Z = \frac{58.5 - 48.36}{3.2586} \approx 3.116 Looking up this Z-score, P(Z3.116)0.9991P(Z \leq 3.116) \approx 0.9991.

(c) Probability that 15 or more succeed

Since the probability of failure is 0.780.78, the probability of success is 10.78=0.221 - 0.78 = 0.22.

Define YY as the number of successes, where Y=62XY = 62 - X. Thus, YBinomial(n=62,p=0.22)Y \sim \text{Binomial}(n = 62, p = 0.22), with:

  • Mean μY=62×0.22=13.64\mu_Y = 62 \times 0.22 = 13.64,
  • Standard deviation σY=13.64×0.783.2586\sigma_Y = \sqrt{13.64 \times 0.78} \approx 3.2586 (same as before).

We need P(Y15)P(Y \geq 15), or equivalently P(Y14.5)P(Y \geq 14.5) with the continuity correction.

Calculating the Z-score: Z=14.513.643.25860.2645Z = \frac{14.5 - 13.64}{3.2586} \approx 0.2645 Looking up this Z-score, P(Z0.2645)0.395P(Z \geq 0.2645) \approx 0.395.

(d) Probability that fewer than 10 succeed

This is P(Y<10)P(Y < 10), or equivalently P(Y9.5)P(Y \leq 9.5) with the continuity correction.

Calculating the Z-score: Z=9.513.643.25861.271Z = \frac{9.5 - 13.64}{3.2586} \approx -1.271 Looking up this Z-score, P(Z1.271)0.1021P(Z \leq -1.271) \approx 0.1021.

Summary of Answers

  1. (a) P(X47)0.716P(X \geq 47) \approx 0.716
  2. (b) P(X58)0.9991P(X \leq 58) \approx 0.9991
  3. (c) P(Y15)0.395P(Y \geq 15) \approx 0.395
  4. (d) P(Y<10)0.1021P(Y < 10) \approx 0.1021

Would you like more details on any of these steps, or do you have further questions?

Follow-up Questions

  1. How would the probabilities change if the failure rate were 70% instead of 78%?
  2. Can we calculate the exact binomial probabilities without the normal approximation for these cases?
  3. Why is the continuity correction necessary when using the normal approximation?
  4. What is the impact of sample size nn on the accuracy of the normal approximation?
  5. How would we find these probabilities if we used a statistical software instead of manual calculations?

Tip

For binomial probabilities involving large nn and extreme pp, the normal approximation becomes more accurate if npnp and n(1p)n(1-p) are both significantly greater than 5.

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Math Problem Analysis

Mathematical Concepts

Binomial Distribution
Normal Approximation
Probability

Formulas

Normal approximation to binomial mean: μ = np
Normal approximation to binomial standard deviation: σ = √(np(1 - p))
Z-score formula: Z = (X - μ) / σ
Continuity correction for normal approximation

Theorems

Central Limit Theorem
Normal Approximation to Binomial Theorem

Suitable Grade Level

Undergraduate Statistics