Solution

Problem # 4.5 Solution

l
ia
er
at
M
Let 𝑋 be the number of partners who approve the decision

2 e
-2 urs
Then, we can consider 𝑋 to be a binomial random variable with parameter (12, 𝜃)

20 o
Probability of no partner approving the decision = 𝑃(𝑋 = 0)

D IC
Probability of 1 partner approving the decision = 𝑃(𝑋 = 1)

M LR
,B X
T1 of
Q rt
Pa

Shounak Basak
10/2/2020
PODS Area, XLRI – Xavier School of Management
49
Solution
Problem # 4.5 Solution

l
ia
er
at
M
Let 𝑋 be the number of partners who approve the decision

2 e
Then, we can consider 𝑋 to be a binomial random variable with parameter (12, 𝜃)

-2 urs
Probability of no partner approving the decision = 𝑃(𝑋 = 0)

20 o
D IC
Probability of 1 partner approving the decision = 𝑃(𝑋 = 1)

M LR
Number of values the random variable 𝑋 can take is 𝑋 = 0, 1, … 12

,B X
T1 of
Q rt
Pa

Shounak Basak
10/2/2020
PODS Area, XLRI – Xavier School of Management
50
Solution
Problem # 4.5 Solution

l
ia
er
at
Let 𝑋 be the number of partners who approve the decision

M
Then, we can consider 𝑋 to be a binomial random variable with parameter (12, 𝜃)

2 e
-2 urs
Probability of no partner approving the decision = 𝑃(𝑋 = 0)

20 o
Probability of 1 partner approving the decision = 𝑃(𝑋 = 1)

D IC
Number of values the random variable 𝑋 can take is 𝑋 = 0, 1, … 12

M LR
Only when 8 or more partners approve, the bidding will be made

,B X
T1 of
Q rt
Pa

Shounak Basak
10/2/2020
PODS Area, XLRI – Xavier School of Management
51
Solution
Problem # 4.5 Solution

l
ia
er
Let 𝑋 be the number of partners who approve the decision

at
M
Then, we can consider 𝑋 to be a binomial random variable with parameter (12, 𝜃)

2 e
Probability of no partner approving the decision = 𝑃(𝑋 = 0)

-2 urs
Probability of 1 partner approving the decision = 𝑃(𝑋 = 1)

20 o
D IC
Number of values the random variable 𝑋 can take is 𝑋 = 0, 1, … 12

M LR
Only when 8 or more partners approve, the bidding will be made

,B X
Probability of 8 or more partners to approve = 𝑃(𝑋 ≥ 8)

T1 of
Q rt
Pa

Shounak Basak
10/2/2020
PODS Area, XLRI – Xavier School of Management
52
Solution
Problem # 4.5 Solution

l
ia
Let 𝑋 be the number of partners who approve the decision

er
at
Then, we can consider 𝑋 to be a binomial random variable with parameter (12, 𝜃)

M
Probability of no partner approving the decision = 𝑃(𝑋 = 0)

2 e
-2 urs
Probability of 1 partner approving the decision = 𝑃(𝑋 = 1)
Number of values the random variable 𝑋 can take is 𝑋 = 0, 1, … 12

20 o
D IC
Only when 8 or more partners approve, the bidding will be made

M LR
Probability of 8 or more partners to approve = 𝑃(𝑋 ≥ 8)

,B X
12 8
Probability of 8 partners approving the decision = 𝑃 𝑋 = 8 = 𝜃 1−𝜃 4

T1 of
8
Q rt
Pa

Shounak Basak
10/2/2020
PODS Area, XLRI – Xavier School of Management
53
Solution
Problem # 4.5 Solution

Let 𝑋 be the number of partners who approve the decision

l
ia
er
Then, we can consider 𝑋 to be a binomial random variable with parameter (12, 𝜃)

at
Probability of no partner approving the decision = 𝑃(𝑋 = 0)

M
Probability of 1 partner approving the decision = 𝑃(𝑋 = 1)

2 e
-2 urs
Number of values the random variable 𝑋 can take is 𝑋 = 0, 1, … 12

20 o
Only when 8 or more partners approve, the bidding will be made

D IC
Probability of 8 or more partners to approve = 𝑃(𝑋 ≥ 8)

M LR
12 8
Probability of 8 partners approving the decision = 𝑃 𝑋 = 8 = 𝜃 1−𝜃 4

,B X
8

T1 of
12 𝑖
Probability of 𝑖 partners approving the decision = 𝑃 𝑋 = 𝑖 = 𝜃 1 − 𝜃 12−𝑖
Q rt
Pa 𝑖

Shounak Basak
10/2/2020
PODS Area, XLRI – Xavier School of Management
54
Solution
Problem # 4.5 Solution

Let 𝑋 be the number of partners who approve the decision

l
ia
Then, we can consider 𝑋 to be a binomial random variable with parameter (12, 𝜃)

er
Probability of no partner approving the decision = 𝑃(𝑋 = 0)

at
M
Probability of 1 partner approving the decision = 𝑃(𝑋 = 1)

2 e
Number of values the random variable 𝑋 can take is 𝑋 = 0, 1, … 12

-2 urs
Only when 8 or more partners approve, the bidding will be made

20 o
D IC
Probability of 8 or more partners to approve = 𝑃(𝑋 ≥ 8)

M LR
12 8
Probability of 8 partners approving the decision = 𝑃 𝑋 = 8 = 𝜃 1−𝜃 4

,B X
8
12 𝑖

T1 of
Probability of 𝑖 partners approving the decision = 𝑃 𝑋 = 𝑖 = 𝜃 1 − 𝜃 12−𝑖
Q rt
Pa 𝑖
12 𝑖
Probability of 8 or more partners to approve = 𝑃 𝑋 ≥ 8 = 12 𝑖=8 𝜃 1 − 𝜃 12−𝑖
𝑖

Shounak Basak
10/2/2020
PODS Area, XLRI – Xavier School of Management
55
Problem
Problem # 4.6

Consider yourself to be employed with a marketing firm of an FMCG company. The products of the FMCG firm are

l
ia
er
sold through the retail shops which in turn procure them from various distributors. Each retail shop procures from many

at
distributors and each distributor supplies to a number of retail shops. Suppose there are 𝑛 distributors operating in the

M
region. There is a probability 𝑝 that the distributor supplies the products to the retail shops in time. It is found that all

2 e
-2 urs
the retail shops will be always stocked if at least half of the number of distributors supply products in time. What values

20 o
of 𝑝 will have a 5 distributor network work effectively to stock the retail shops compared to a 3 distributor network?

D IC
M LR
,B X
T1 of
Q rt
Pa

Shounak Basak
10/2/2020
PODS Area, XLRI – Xavier School of Management
56