Pioneer Aircraft: Probability of Planes Sold Pioneer Aircraft Co. sells private,
ID: 415874 • Letter: P
Question
Pioneer Aircraft: Probability of Planes Sold
Pioneer Aircraft Co. sells private, single-engine planes. Most sales are for customers engaged in private and leisure flying. In a 50-week period, sales in the past five years have averaged to the following:
PLANES SOLD WEEKS THIS NUMBER SOLD
0 40
1 8
2 1
3 1
1. Determine the probability of each number of planes sold—of 0, 1, 2, 3—in a 50-week period. (Pioneer sales office is closed the other two weeks of the year.)
2. Decide what approach (objective approach, subjective approach, relative frequency approach) is best used to determine probability. Distinguish between the approaches to make it clear that the approach used was the best fit for these airplane sales.
3. Determine if the approach would change if we also needed to track sales of some planes with GPS installed.
Explanation / Answer
1 Planes sold Weeks this no sold Probablity 0 40 0.8 1 8 0.16 2 1 0.02 3 1 0.02 2 This is the relative frequency approach As we clearly have the frequencies of each no of planes sold this is the best method to be used Objective approach is based on statistics and experiments, this can also be used but relative method is the best method Subjective is based just on experience which is certianly not the case 3 Objective approach would be a better one basis statistical data about planes sold with GPS