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Week # 9

Binomial Distribution

Suppose that 25 % of fire alarms in a city are false alarms

1) Let X denote the number of false alarms in a random sample of 10 alarms.

What type of variable is X ? What are the possible values of X ?

What is the mean and standard deviation of X ?
Using Excel construct a table for the probability distribution of X
Plot P(X) vs X and comment on the shape of the graph
Based on the previously constructed table, what percentage of times the value of X is
within 2 standard deviations of the expected value of X ?
( Hint : Find ( 2 + 2)

2) Repeat the previous exercise for a random sample of 30 alarms, 100 alarms and 300 alarms.
What can you conclude about the shape of the probability distribution of X as the sample size
increases? How about the probability of X being within 2 standard deviations from the mean of
X? How does it compare to the percentage in the empirical rule?