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30 Dec 2006, 23:23
Kudos
Bookmarks
I am trying to learn some business stats before I go into an MBA program. The examples in the book were easy. However, I got stuck on this problem and and am not sure where I am going wrong.
Ok here are the specifics of the problem
100 companies were surveyed. 30 of them have instituted total quality management. 60 of them have reported an increase in sales. 20 of the companies that had seen increased sales had instituted TQM.
Here are the two problem parts I am having trouble with. I know what the answers are in the book, but it doesn't show the math. All it tells me is if they are dependent or independent (Answer to A is dependent. B is independent) Can anyone help me with the math on this?
A. Are the two events (TQM Implementation) and (Sales Increased) dependent or independent
B. Supposed that instead of 20 TQM implementers among the 60 firms reporting sales increases, there were 18. Now are the events independent or dependent?
Jim
Ok here are the specifics of the problem
100 companies were surveyed. 30 of them have instituted total quality management. 60 of them have reported an increase in sales. 20 of the companies that had seen increased sales had instituted TQM.
Here are the two problem parts I am having trouble with. I know what the answers are in the book, but it doesn't show the math. All it tells me is if they are dependent or independent (Answer to A is dependent. B is independent) Can anyone help me with the math on this?
A. Are the two events (TQM Implementation) and (Sales Increased) dependent or independent
B. Supposed that instead of 20 TQM implementers among the 60 firms reporting sales increases, there were 18. Now are the events independent or dependent?
Jim
Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
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30 Dec 2006, 23:49
Kudos
Bookmarks
if i remember correctly, two events (A and B) are defined to be independent if P(A and B) = P(A)*P(B)
in our case: A is the TQM , p(A)=0.3 ; B is the increased sales, P(B)=0.6
if there are 20 companies that have both A and B - it means:
p(A and B) = 0.2 which is not equal to P(A)*p(B)=0.18
hence A and B are dependent
however, if there are only 18, then P(A and B) = 0.18 = P(A)*p(B)
hence the events are independent.
hope it helps.
in our case: A is the TQM , p(A)=0.3 ; B is the increased sales, P(B)=0.6
if there are 20 companies that have both A and B - it means:
p(A and B) = 0.2 which is not equal to P(A)*p(B)=0.18
hence A and B are dependent
however, if there are only 18, then P(A and B) = 0.18 = P(A)*p(B)
hence the events are independent.
hope it helps.
30 Dec 2006, 23:52
Kudos
Bookmarks
I wish the book explained it as well as you did
Maybe you can start your own textbook company after your MBA:)
Maybe you can start your own textbook company after your MBA:)
Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
Where to now? Join ongoing discussions on thousands of quality questions in our Quantitative Questions Forum
Still interested in this question? Check out the "Best Topics" block above for a better discussion on this exact question, as well as several more related questions.
Thank you for understanding, and happy exploring!
