19.01.2015 Views

Statistics for Decision- Making in Business - Maricopa Community ...

Statistics for Decision- Making in Business - Maricopa Community ...

Statistics for Decision- Making in Business - Maricopa Community ...

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

3.5 Comb<strong>in</strong>ations and Permutations<br />

Recall from Section 3.2 the problem faced by a corn grow<strong>in</strong>g bus<strong>in</strong>ess: the FDA determ<strong>in</strong>es that<br />

two of the 20 bushels are potentially contam<strong>in</strong>ated with E. coli. Two bushels had been shipped<br />

out and the question was: what is the probability that both bushels that were shipped to the local<br />

grocer were uncontam<strong>in</strong>ated<br />

We wrote the simultaneous probability as<br />

( )<br />

( ) ( )<br />

Due to the fact that one of the uncontam<strong>in</strong>ated bushels was removed from the “pool”, there was<br />

now only a 17/19 chance that the second uncontam<strong>in</strong>ated bushel would be pulled. In short, we<br />

wrote:<br />

( )<br />

We notice that the numerator and denom<strong>in</strong>ator both have a product of two sequential numbers.<br />

Had they shipped, say, four bushels, the probability that all four were uncontam<strong>in</strong>ated would be:<br />

As you might imag<strong>in</strong>e, this pattern cont<strong>in</strong>ues.<br />

How pa<strong>in</strong>ful, though, would it be to have to multiply eight or n<strong>in</strong>e probabilities of this nature<br />

together You could certa<strong>in</strong>ly do it, but you might th<strong>in</strong>k, “It sure would be nice to take advantage<br />

of this pattern!” Well, we‟re <strong>in</strong> luck!<br />

Let‟s def<strong>in</strong>e an important term:<br />

A factorial is a descend<strong>in</strong>g product of whole numbers down to 1, beg<strong>in</strong>n<strong>in</strong>g at a specified whole<br />

number. To start with a generic whole number, , we denote this product by , and write:<br />

( ) ( )<br />

Example 1: F<strong>in</strong>d .<br />

SOLUTION: By def<strong>in</strong>ition of factorial, we write<br />

<strong>Statistics</strong> <strong>for</strong> <strong>Decision</strong>-<strong>Mak<strong>in</strong>g</strong> <strong>in</strong> Bus<strong>in</strong>ess © Milos Podmanik Page 119

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!