The document contains 11 problems involving calculating probabilities and statistics using different datasets and distributions. The problems cover topics such as normal distributions, binomial distributions, exponential distributions, and calculating expected values, variances, and covariances. The document tests understanding of fundamental probability and statistical concepts.
The document contains 11 problems involving calculating probabilities and statistics using different datasets and distributions. The problems cover topics such as normal distributions, binomial distributions, exponential distributions, and calculating expected values, variances, and covariances. The document tests understanding of fundamental probability and statistical concepts.
The document contains 11 problems involving calculating probabilities and statistics using different datasets and distributions. The problems cover topics such as normal distributions, binomial distributions, exponential distributions, and calculating expected values, variances, and covariances. The document tests understanding of fundamental probability and statistical concepts.
The document contains 11 problems involving calculating probabilities and statistics using different datasets and distributions. The problems cover topics such as normal distributions, binomial distributions, exponential distributions, and calculating expected values, variances, and covariances. The document tests understanding of fundamental probability and statistical concepts.
Download as DOCX, PDF, TXT or read online from Scribd
Download as docx, pdf, or txt
You are on page 1/ 3
1. Using Computer Repair Times.
xls a. What is the probability that a computer would be repaired in as little as 4 days? b. The probability that could be repaired in 10 days? c. The probability that could be repaired not more than 15 days? d. The probability that could be repaired between 10 and 16 inclusive? e. The probability that could be repaired at least in 17 days? f. The probability that could be repaired more than 7 days? 2. Using Energy drink Survey database calculate a. P(Male) b. P(female) c. P(Brand1) d. Pr(brand2) e. Pr(brand 3) f. P(Male and brand 3) g. P(female or brand2) h. P(female/ Brand2) i. P(male/ Brand1) j. Is Brand1 and male are independent 3. Use Sales transaction database a. Find the probabilities that a sale originated in each of the four regions and the probability of each type of sales ( book or DVD) b. Find the conditional probabilities of selling book given that the customer resides in each region.
4. Suppose it is known that the distribution of purchase amounts by customers entering a
popular retail store is approximately normal with mean $75 and standard deviation $20.
a. What is the probability that a randomly selected customer spends less than $85 at this store? b. What is the probability that a randomly selected customer spends between $65 and $85 at this store? c. What is the probability that a randomly selected customer spends more than $45 at this store? d. Find the dollar amount such that 80% of all customers spend at least this amount. e. Find two dollar amounts, equidistant from the mean, such that 90% of all customer purchases are between these values. 5. In a typical month, an insurance agent presents life insurance plans to 40 potential customers. Historically, one in four such customers chooses to buy life insurance from this agent. Based on the relevant binomial distribution, answer the following questions about X, the number of customers who will buy life insurance from this agent in the coming month:
a. What is the probability X is exactly 5?
b. What is the probability that X is no more than 10? c. What is the probability that X is at least 20? d. Determine the mean and standard deviation of X. e. What is the probability that X will be within two standard deviations of the mean? f. What is the probability that X will be within three standard deviations of the mean? 6. Consider a random variable with the following probability distribution: P(X = 0) = 0.1, P(X = 1) = 0.2, P(X = 2) = 0.3, P(X = 3) = 0.3, and P(X = 4) = 0.1.
a. Find P(X ≤ 2).
b. Find P(1 < X ≤ 3). c. Find P(X > 3|X > 2). d. Find the expected value of X. e. Find the standard deviation of X. 7. Suppose that X, the number of customers arriving each hour at the only checkout counter in a local pharmacy, is approximately Poisson distributed with an expected arrival rate of 20 customers per hour. a. Find the probability that X is exactly 10. b. Find the probability that X is at least 5. c. Find the probability that X is no more than 25. d. Find the probability that X is between 10 and 30 (inclusive). e. Find the largest integer k such that we can be at least 95% sure that X will be greater than k. 8. Let the number of phone calls received by a switchboard during a 5-minute interval be a random variable X with Exponential (2) distribution.
a. Determine the probability that X equals 0, 1, 2, 3, 4, 5, and 6.
b. Graph the probability mass function for these values of x. c. Determine the cumulative distribution function for these values of X. 9. Choose an appropriate forecasting technique for the data in the Excel file DJIA December Close and find the best forecasting model. Explain how you would use the model to forecast and how far into the future it would be appropriate to forecast. 10. An employee of a vending concession firm at the Subiaco Oval needs to choose between two options. He can work behind a hamburger counter and receive a fixed sum of $100 per game. Alternatively, he can walk around the stands selling beer and snacks on a commission basis. On this second option, the employee can expect to earn $180 on a good day, $100 on an average day and $70 on a poor day. The probabilities of a good, average and poor day are 0.30, 0.40 and 0.30 respectively. (a) What would be the expected earnings and the standard deviation in earnings for the employee under the commission option? (b)Which job should he take and why?
11. Suppose that we want to decide between two alternative investments for the coming year. The first investment is a mutual fund that consists of the shares that make up the Dow Jones Industrial Average. The second investment is a mutual fund that is expected to perform best when economic conditions are weak. Your estimate of the returns for each investment ( per $1,000) under three economic conditions , each with a given probability of occurrence , is summarized Investment P(X,Y) Economic conditions Dow Jones Fund Weak Economy fund
0.2 Recession -$100 +$200
0.5 Stable economy +100 +50 0.3 Expanding economy +250 -100 Calculate Expected value , variance and covariance and comment .
