Estimating the Probabilities of Sales at Maxwell
Prerequisite Conceptual Understanding
Prerequisite Conceptual Understanding (PCU) material is the background material that would aid immensely in mapping the decision areas of this caselet and bring a synthesis amongst the relevant concepts. The participants/students should be encouraged to read this material to benefit from the broader perspectives outlined in the caselet.
- • Richard I. Levin and David S. Rubin, “Chapter 6: Sampling and Sampling Distributions”, Statistics for Management, 7th Edition, Pearson Education, 2008.
Synopsis
This caselet enables an understanding of the application of Discrete Probability Distribution. Maxwell is an upcoming electronics retailer in Bangalore, India. Through its huge promotional offers, it had continued attracting a lot of window purchasers. The company sold all types of electronic gadgets including multibrand handsets, accessories, network connections, provided repair services, etc. As the founder observed that not all the visitors became Maxwell’s customers. Based on his past experience and recommendation from consultant, he wanted to estimate the probability of the number of customers who may make purchases based on discrete probability distribution.
Pedagogical Objectives
- • To understand the basics of Discrete Probability Distribution
- • To discuss and analyze how the discrete probability distribution can be used to improve the top line of a company
Assignment Question
I. Analyze the purchase decisions of the sample customers at Maxwell.
Teaching Plan
The Teaching Note follows a defined Teaching Plan [Annexure (TN)-I], which guides in conducting the classroom discussion.............
Exhibits
Exhibit (TN)-I: Tree Diagram for Maxwell Experiment
Exhibit (TN)-II: Trial Outcomes for Two Successes
Exhibit (TN)-III: Calculation of Probability Distribution
Exhibit (TN)-IV: Probability Distribution for Number of Customers Making a Purchase
Exhibit (TN)-V: Binomial Probabilities for the Maxwell Store Problem