From a portion of a probability distribution, you read that P(demand = 0) is 0.05, P(demand = 1) is 0.10, and P(demand = 2) is 0.20. The two-digit random number intervals for this distribution beginning with 01 are
A) 01 through 05, 01 through 10, and 01 through 20
B) 00 through 04, 05 through 14, and 15 through 34
C) 01 through 05, 06 through 15, and 16 through 35
D) 00 through 04, 00 through 09, and 00 through 19
E) 01 through 06, 07 through 16, and 17 through 36

Question

Quizplus · Accepted Answer

To find the random number intervals, we need to first convert the probabilities into cumulative probabilities. The cumulative probabilities can be found by adding up the probabilities of all the previous outcomes. So, the cumulative probabilities for this distribution are:

P(demand <=0) = 0.05
P(demand <=1) = 0.05 + 0.10 = 0.15
P(demand <=2) = 0.15 + 0.20 = 0.35

The two-digit intervals can then be found by multiplying each cumulative probability by 100 and rounding to the nearest whole number:
01 to 05 (corresponding to P(demand = 0))
06 to 15 (corresponding to P(demand = 1))
16 to 35 (corresponding to P(demand = 2))

The only option that matches these intervals is choice C.

From a Portion of a Probability Distribution, You Read That