Question 1198137: A study about strategies for competing in the global marketplace states that
52% of the respondents agreed that companies need to make direct investments
in foreign countries. It also states that about 70% of those responding agree
that it is attractive to have a joint venture to increase global competitiveness.
Suppose CEOs of 95 manufacturing companies are randomly contacted about
global strategies.
Question: What is the probability that between 44 and 52 (inclusive) CEOs agree
that companies should make direct investments in foreign countries?
Answer by onyulee(41)   (Show Source):
You can put this solution on YOUR website! **1. Define the Random Variable**
* Let X be the number of CEOs out of 95 who agree that companies need to make direct investments in foreign countries.
**2. Identify the Probability Distribution**
* This scenario follows a binomial distribution:
* There are a fixed number of trials (n = 95 CEOs).
* Each trial has two possible outcomes (agree or disagree).
* The probability of success (agreement) is constant (p = 0.52).
* The trials are independent.
**3. Calculate the Probability**
* We need to find P(44 ≤ X ≤ 52)
* **Using a Binomial Probability Calculator or Statistical Software:**
* Input the following:
* Number of trials (n): 95
* Probability of success (p): 0.52
* Lower bound for X: 44
* Upper bound for X: 52
* The calculator will provide the cumulative probability for X between 44 and 52.
**4. Interpretation**
* The calculated probability represents the likelihood that between 44 and 52 out of the 95 CEOs surveyed agree that companies need to make direct investments in foreign countries, given the stated probability of agreement (0.52) and the sample size (95).
**Note:**
* Calculating this probability manually using the binomial probability formula would be very time-consuming.
* Statistical software like Excel, R, or Python have built-in functions (e.g., `BINOM.DIST` in Excel) to efficiently calculate binomial probabilities.
**Disclaimer:** This analysis assumes that the sample of 95 CEOs is truly random and representative of the population of all manufacturing company CEOs.
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