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