Table of contents
- 1. Intro to Stats and Collecting Data55m
- 2. Describing Data with Tables and Graphs1h 55m
- 3. Describing Data Numerically1h 45m
- 4. Probability2h 16m
- 5. Binomial Distribution & Discrete Random Variables2h 33m
- 6. Normal Distribution and Continuous Random Variables1h 38m
- 7. Sampling Distributions & Confidence Intervals: Mean1h 3m
- 8. Sampling Distributions & Confidence Intervals: Proportion1h 12m
- 9. Hypothesis Testing for One Sample1h 1m
- 10. Hypothesis Testing for Two Samples2h 8m
- 11. Correlation48m
- 12. Regression1h 4m
- 13. Chi-Square Tests & Goodness of Fit1h 20m
- 14. ANOVA1h 0m
5. Binomial Distribution & Discrete Random Variables
Discrete Random Variables
Problem 4.T.4
Textbook Question
In Exercises 1–7, consider a grocery store that can process a total of four customers at its checkout counters each minute.
The mean increases to five arrivals per minute, but the store can still process only four per minute. Generate a list of 20 random numbers with a Poisson distribution for mu = 5 . Then create a table that shows the number of customers waiting at the end of 20 minutes.

1
Step 1: Understand the Poisson distribution. The Poisson distribution is used to model the number of events occurring in a fixed interval of time or space, given the average number of occurrences (denoted as μ). Here, μ = 5 represents the mean number of customer arrivals per minute.
Step 2: Generate 20 random numbers using the Poisson distribution with μ = 5. This can be done using statistical software or programming languages such as Python (using numpy's poisson function), R, or Excel. Each number represents the number of arrivals in one minute.
Step 3: Create a table to track the number of customers waiting at the end of each minute. For each minute, compare the number of arrivals (from the Poisson distribution) to the store's processing capacity (4 customers per minute). If arrivals exceed the processing capacity, calculate the number of customers left waiting and carry them over to the next minute.
Step 4: Update the table iteratively for all 20 minutes. For each minute, add the number of new arrivals to the number of customers carried over from the previous minute, subtract the processing capacity (4 customers), and record the remaining customers waiting.
Step 5: At the end of 20 minutes, review the table to determine the total number of customers waiting. The table should include columns for minute, arrivals, processed customers, and customers waiting.

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Key Concepts
Here are the essential concepts you must grasp in order to answer the question correctly.
Poisson Distribution
The Poisson distribution is a probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space, given a known average rate of occurrence. It is particularly useful for modeling the number of times an event happens in a specified period, such as customer arrivals at a store. The parameter 'mu' represents the average rate, which in this case is set to 5 arrivals per minute.
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Random Number Generation
Random number generation is the process of creating a sequence of numbers that cannot be reasonably predicted better than by random chance. In the context of the Poisson distribution, random numbers can be generated to simulate customer arrivals, allowing for the analysis of waiting times and service efficiency. This technique is essential for creating realistic models in statistical simulations.
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Queueing Theory
Queueing theory is the mathematical study of waiting lines or queues. It helps analyze the behavior of queues in various systems, such as customer service in a grocery store. By understanding the arrival rate and service rate, one can predict the number of customers waiting at any given time, which is crucial for managing resources and improving service efficiency.
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