Exam 5: Discrete Probability Distributions

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 90% of the production lines and Design B for the remaining production lines,what is the expected profit?

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 expected value gain for the house in neighborhood B?

A lab orders 100 rats a week for each of the 52 weeks in the year for experiments that the lab conducts.Suppose the mean cost of rats used in lab experiments turned out to be $13.00 per week.Interpret this value.

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 standard deviation of the number of retransmissions is ________.

What type of probability distribution will the consulting firm most likely employ to analyze the insurance claims in the following problem? An insurance company has called a consulting firm to determine if the company has an unusually high number of false insurance claims.It is known that the industry proportion for false claims is 3%.The consulting firm has decided to randomly and independently sample 100 of the company's insurance claims.They believe the number of these 100 that are false will yield the information the company desires.

Suppose that past history shows that 60% of college students prefer Brand C cola.A sample of 5 students is to be selected.The variance of the number that prefer brand C is ________.

The number of power outages at a nuclear power plant has a Poisson distribution with a mean of 6 outages per year.The probability that there will be between 1 and 3 inclusive power outages in a year is ________.

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 more than four of the new employees will be from University A?

From an inventory of 48 new cars being shipped to local dealerships,corporate reports indicate that 12 have defective radios installed.Which of the following distributions would you use to determine the probability that out of the 8 new cars it just received that,when each is tested,no more than 2 of the cars have defective radios?

True or False: The number of customers arriving at a department store in a 5-minute period has a Poisson distribution.

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 less than two or more than eight mishandled bags?

Referring to Table 5-1,the probability that neither sound an alarm in the presence of smoke is ________.

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 the coefficient of variation of your investment?

Suppose the probability of a power outage at a nuclear power plant on a single day is the same every day of the year.Also the probability of having a power outage on a single day does not increase or decrease the probability of a power outage on another day.Which of the following distributions would you use to determine the probability that a power outage will occur next Monday?

True or False: The expected return of a two-asset portfolio is equal to the product of the weight assigned to the first asset and the expected return of the first asset plus the product of the weight assigned to the second asset and the expected return of the second asset.

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 three mishandled bags?

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 between two and four inclusive mishandled bags?

TABLE 5-6 The quality control manager of Green Bulbs Inc.is inspecting a batch of energy saving compact fluorescent light bulbs.When the production process is in control,the average number of bad bulbs per shift is 6.0. -Referring to Table 5-6,what is the probability that any particular shift being inspected has produced at least 6.0 bad bulbs?

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 your expected profit when Design A is chosen?

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 70% of the production lines and Design B for the remaining production lines,what is the coefficient of variation of your investment?