Guide to Using Minitab 14 For Basic
Statistical Applications
To Accompany
Business Statistics: A Decision Making
Approach, 8th Ed.
Chapter 5:
Introduction to Discrete Probability
Distributions
By
Groebner, Shannon, Fry, & Smith
Prentice-Hall Publishing Company
Copyright, 2011
Chapter 5 Minitab
Examples


Binomial Mean Catalog Sales
Poisson Distribution
Heritage Tile
More Examples
Binomial Mean
Catalog Sales
Issue: People who order items from catalogs
can return the items for a refund. Historical
return rate for one catalog has been 11 percent.
Is this rate still valid?
Objective: Use Minitab to compute binomial
probabilities based on a sample of 300
purchases.
Binomial Mean – Catalog Sales
Situation:
 Sample Size is n = 300
 p = .11
 Mean = np = 300(.11) = 33
 44 returns were observed
 P(X > 44) = 1 – P(X < 43)
 Find P(X < 43) = ?
Binomial Probabilities – EPA Standards
Select Calc –
Probability
Distributions
- Binomial
Binomial Mean – Catalog Sales
Specify Cumulative
probability, Number of
trials, success
probability, and the
Input constant (=
number of successes)
Binomial Mean – Catalog Sales
Binomial Probability – Now Take 10.97 = 0.03
Poisson Distribution
Heritage Title
Issue: The distribution for the number of
defects per tile made by Heritage Tile is Poisson
distributed with a mean of 3 defects per tile. The
manager is worried about the high variability
Objective: Use Minitab to generate the Poisson
distribution and histogram to visually see spread
in the distribution of possible defects.
Poisson Standard Deviation – Heritage Tile
Select Calc – then
select Probability
Distributions – then
Poisson
Create Number
column (0 – 10)
Poisson Standard Deviation – Heritage Tile
Mean = 3
Select Probability
and the Input column.
Enter the Number
column and label
optional storage
column as Probability
Poisson Standard Deviation – Heritage Tile
Poisson Probabilities
for mean = 3
Poisson Standard Deviation – Heritage Tile
Select Graph – Bar
Chart
Poisson Standard Deviation – Heritage Tile
Select Values from
table – Simple - OK
Poisson Standard Deviation – Heritage Tile
Select variable to
graph – Select
categorical variable OK
Poisson Standard Deviation – Heritage Tile
Poisson Probability
Distribution