In Exercises 13 and 14, use the table, which shows the approximat...

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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
- Introduction to Confidence Intervals
  15m
- Confidence Intervals for Population Mean
  48m
8. Sampling Distributions & Confidence Intervals: Proportion1h 12m
- Sampling Distribution of Sample Proportion
  29m
- Confidence Intervals for Population Proportion
  42m
9. Hypothesis Testing for One Sample1h 1m
- Steps in Hypothesis Testing
  1h 1m
10. Hypothesis Testing for Two Samples2h 8m
11. Correlation48m
- Scatterplots & Intro to Correlation
  26m
- Correlation Coefficient
  21m
12. Regression1h 4m
13. Chi-Square Tests & Goodness of Fit1h 20m
14. ANOVA1h 0m

4. Probability

Addition Rule

Statistics

4. Probability

Addition Rule

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1:44 minutes

Problem 3.RE.13

Textbook Question

In Exercises 13 and 14, use the table, which shows the approximate distribution of the sizes of firms for a recent year. (Adapted from North American Industry Classification System)

13. Find the probability that a randomly selected firm will have more than four employees.

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Key Concepts

Here are the essential concepts you must grasp in order to answer the question correctly.

Probability

Probability is a measure of the likelihood that a particular event will occur, expressed as a number between 0 and 1. In this context, it refers to the chance of randomly selecting a firm with more than four employees from the given distribution. Understanding how to calculate probability is essential for interpreting statistical data and making informed decisions based on that data.

Cumulative Distribution

A cumulative distribution function (CDF) represents the probability that a random variable takes on a value less than or equal to a certain number. To find the probability of selecting a firm with more than four employees, one must calculate the cumulative percentage of firms with four or fewer employees and subtract it from 100%. This concept is crucial for understanding how probabilities accumulate across different categories.

Percentages in Statistics

Percentages are a way to express a number as a fraction of 100, making it easier to compare different data sets. In the context of the table, the percentages represent the proportion of firms within specific employee ranges. Understanding how to interpret and manipulate these percentages is vital for answering questions about distributions and probabilities in statistics.

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In Exercises 13 and 14, use the table, which shows the approximate distribution of the sizes of firms for a recent year. (Adapted from North American Industry Classification System)13. Find the probability that a randomly selected firm will have more than four employees.