Exam 5: Discrete Probability Distributions

TABLE 5-10 An accounting firm in a college town usually recruits employees from two of the universities in town.This year,there are fifteen graduates from University A and five from University B and the firm decides to hire six new employees from the two universities. -Referring to Table 5-10,what is the probability that all six of the new employees will be from University A?

TABLE 5-3 The following table contains the probability distribution for X = the number of retransmissions necessary to successfully transmit a 1024K data package through a double satellite media. -Referring to Table 5-3,the mean or expected value for the number of retransmissions is ________.

TABLE 5-5 From an inventory of 48 new cars being shipped to local dealerships,corporate reports indicate that 12 have defective radios installed. -Referring to Table 5-5,what is the probability out of the 8 new cars it just received that,when each is tested,no more than 2 of the cars have defective radios?

Referring to Table 5-2,the probability that exactly 1 business succeeds is ________.

True or False: The expected return of the sum of two investments will be equal to the sum of the expected returns of the two investments plus twice the covariance between the investments.

Referring to Table 5-2,the probability that at least 1 business succeeds is ________.

TABLE 5-7 There are two houses with almost identical characteristics available for investment in two different neighborhoods with drastically different demographic composition.The anticipated gain in value when the houses are sold in 10 years has the following probability distribution: -Referring to Table 5-7,if your investment preference is to minimize the amount of risk that you have to take and do not care at all about the expected return,will you choose a portfolio that will consist of 10%,30%,50%,70%,or 90% of your money on the house in neighborhood A and the remaining on the house in neighborhood B?

TABLE 5-8 Two different designs on a new line of winter jackets for the coming winter are available for your manufacturing plants.Your profit (in thousands of dollars)will depend on the taste of the consumers when winter arrives.The probability of the three possible different tastes of the consumers and the corresponding profits are presented in the following table. -Referring to Table 5-8,what is the standard deviation of your profit when Design A is chosen?

True or False: In a Poisson distribution,the mean and variance are equal.

TABLE 5-8 Two different designs on a new line of winter jackets for the coming winter are available for your manufacturing plants.Your profit (in thousands of dollars)will depend on the taste of the consumers when winter arrives.The probability of the three possible different tastes of the consumers and the corresponding profits are presented in the following table. -Referring to Table 5-8,if you decide to choose Design A for 30% of the production lines and Design B for the remaining production lines,what is the coefficient of variation of your investment?

TABLE 5-8 Two different designs on a new line of winter jackets for the coming winter are available for your manufacturing plants.Your profit (in thousands of dollars)will depend on the taste of the consumers when winter arrives.The probability of the three possible different tastes of the consumers and the corresponding profits are presented in the following table. -Referring to Table 5-8,if you decide to choose Design A for 10% of the production lines and Design B for the remaining production lines,what is the risk of your investment?

TABLE 5-8 Two different designs on a new line of winter jackets for the coming winter are available for your manufacturing plants.Your profit (in thousands of dollars)will depend on the taste of the consumers when winter arrives.The probability of the three possible different tastes of the consumers and the corresponding profits are presented in the following table. -Referring to Table 5-8,if you decide to choose Design A for half of the production lines and Design B for the other half,what is your expected profit?

TABLE 5-11 Subscribers to Investment Advice White Letters perform security transactions at the rate of five trades per month.Assume that one of the subscribers performs transactions at this rate and the probability of a transaction for any two months is the same and the number of transactions in one month is independent of the number of transactions in another month. -Referring to Table 5-11,what is the probability that no security transaction will be conducted in one month?

TABLE 5-9 A major hotel chain keeps a record of the number of mishandled bags per 1,000 customers.In a recent year,the hotel chain had 4.06 mishandled bags per 1,000 customers.Assume that the number of mishandled bags has a Poisson distribution. -Referring to Table 5-9,what is the probability that in the next 1,000 customers,the hotel chain will have no more than two or at least eight mishandled bags?

TABLE 5-8 Two different designs on a new line of winter jackets for the coming winter are available for your manufacturing plants.Your profit (in thousands of dollars)will depend on the taste of the consumers when winter arrives.The probability of the three possible different tastes of the consumers and the corresponding profits are presented in the following table. -Referring to Table 5-8,what is the covariance of the profits from the two different designs?

True or False: If the covariance between two investments is zero,the variance of the sum of the two investments will be equal to the sum of the variances of the investments.

True or False: Suppose that the number of airplanes arriving at an airport per minute is a Poisson process.The average number of airplanes arriving per minute is 3.The probability that exactly 6 planes arrive in the next minute is 0.05041.

TABLE 5-8 Two different designs on a new line of winter jackets for the coming winter are available for your manufacturing plants.Your profit (in thousands of dollars)will depend on the taste of the consumers when winter arrives.The probability of the three possible different tastes of the consumers and the corresponding profits are presented in the following table. -Referring to Table 5-8,if your investment preference is to minimize the amount of risk that you have to take and do not care at all about the expected profit,will you choose a production mix that will consist of 10%,30%,50%,70%,or 90% of your production lines for Design A and the remaining for Design B?

The online access computer service industry is growing at an extraordinary rate.Current estimates suggest that 75% of the home-based computers have access to online services.Suppose 20 people with home-based computers were randomly and independently sampled.Find the probability that fewer than 10 of those sampled currently have access to online services.

TABLE 5-7 There are two houses with almost identical characteristics available for investment in two different neighborhoods with drastically different demographic composition.The anticipated gain in value when the houses are sold in 10 years has the following probability distribution: -Referring to Table 5-7,what is the total variance of value gain if you invest in both houses?