What Type of Probability Distribution Will Most Likely Be Used

question 137

Multiple Choice

What type of probability distribution will most likely be used to analyze warranty repair needs on new cars in the following problem?
The service manager for a new automobile dealership reviewed dealership records of the past
20 sales of new cars to determine the number of warranty repairs he will be called on to
Perform in the next 90 days. Corporate reports indicate that the probability any one of their
New cars needs a warranty repair in the first 90 days is 0.05. The manager assumes that calls
For warranty repair are independent of one another and is interested in predicting the number
Of warranty repairs he will be called on to perform in the next 90 days for this batch of 20
New cars sold.

• A) binomial distribution.
• B) Poisson distribution.
• C) hypergeometric distribution.
• D) none of the above.

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Definitions:

Business Process Re-engineering

Business process re-engineering involves fundamentally rethinking and radically redesigning business processes to achieve dramatic improvements in critical measures of performance such as cost, service, and speed.

Radical Approach

An innovative or transformative strategy or methodology that significantly deviates from traditional practices.

Managing Costs

The process of planning, monitoring, and controlling the expenses associated with business operations to maximize profitability.

Major Improvements

Significant upgrades or enhancements made to processes, systems, or assets to increase efficiency, performance, or value.