CHAPTER 11 –PROBABILITY AND STATISTICS

CASE PROBLEM 1- VALLEY SWIM CLUB

1 139 17 380 33 193 49 399 65 177 81 238

2 273 18 367 34 378 50 197 66 161 82 224
3 172 19 359 35 461 51 273 67 308 83 368
4 275 20 463 36 242 52 213 68 256 84 541
5 337 21 578 37 177 53 303 69 391 85 235
6 402 22 287 38 245 54 262 70 400 86 218
7 487 23 247 39 390 55 447 71 224 87 271
8 198 24 356 40 284 56 399 72 239 88 259
9 310 25 322 41 417 57 275 73 274 89 232
10 347 26 419 42 474 58 241 74 205 90 317
11 393 27 516 43 194 59 190 75 361 91 369
12 421 28 478 44 207 60 243 76 411 92 361
13 595 29 303 45 215 61 277 77 419
14 497 30 223 46 304 62 241 78 258 ∑ = 28900
15 341 31 315 47 331 63 384 79 130 n = 92
16 291 32 258 48 407 64 246 80 195

CRITERIA:

1. The expected number of days on which attendance would exceed 500 not more than 5
with the current membership.

Day 13 – 595
Day 21 – 578
Day 27 – 516
Day 84 – 541

From this data, we can see that there are only four on which attendance exceed 500.
This shows that these criteria are met.
2. The current average daily attendance should be not more than 320.

∑ Attendance of each day = 28900

∑ Day, n = 92

x = 28900

= 314 Attendance per day

From this calculation, we can see that attendance per day= 314. It means that
the current average daily attendance is not more than 320. This shows that these
criteria are met.

3. The average daily weekend (Saturday and Sunday) attendance should be no

more than 500. (Weekend attendance is every sixth and seventh entry in each
progression of seven entries in the preceding data.)

∑ Of weekend attendance = 11239

No. of weekend = 26

x = 11239
26
= 432 days
From this calculation, it shows those 423 days. It means that the average daily weekend
(Saturday and Sunday) attendance is no more than 500. This shows that these criteria
are not met.
1 139 +273 206 23 215 + 304 259.5
2   2  
       
2
2 172 + 275 223.5 4 331 + 407 369
2   2   The club
        issue one
3 337 + 402 369.5 25 399 + 197 298
new share
2   2  
        at a price $
4 487 + 198 342.5 26 273 + 213 243 1000, for
2   2  
        every two
5 310 + 347 328.5 27 303 + 262 282.5 average
2   2   attendance
       
6 595 + 497 546 28 447 + 399 423 between
2   2   the current
       
daily
7 393 + 421 407 29 275 + 241 258
2   2   average
        and upper
8 341 + 291 316 30 190 + 243 216.5
for limit of
2   2  
        400.
9 380 + 367 373.05 31 177 + 161 169
2   2  
       
1
0 359 + 463 411 32 308 + 256 282
2   2  
       
1 3
1 578 + 287 432.5 3 291 + 400 395.5
2   2  
       
1
2 247 + 356 301.5 34 274 + 205 239.5
2   2  
       
1 3
3 322 + 419 370.5 5 361 + 411 380
2   2  
       
1 3
4 516 + 478 497 6 419 + 258 338.5
2   2  
       
1
5 303 + 223 263 37 130 + 195 162.5
2   2  
       
1
6 315 + 258 286.5 38 238 + 224 231
From the calculation, attendance between the current daily average 314 Attendance per
day and an upper limit of 400 is 14 new shares will issue.

Additional revenue = 14 x $ 1000

= $ 14000
Yes, from this calculation, we can conclude that the Valley Swim Club should issue new
shares. New shares that will issue are 14 and the additional revenue will it realize is
$14000.