Exam 5: Discrete Probability Distributions

The number of customers arriving at a department store in a 5-minute period has a binomial distribution.

In a game called Taxation and Evasion,a player rolls a pair of dice.If on any turn the sum is 7,11,or 12,the player gets audited.Otherwise,she avoids taxes.Suppose a player takes 5 turns at rolling the dice.The standard deviation of the number of times she will be audited is _____.

SCENARIO 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 Scenario 5-10,what is the probability that no more than two of the new employees will be from University B?

SCENARIO 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 network. -Referring to Scenario 5-3,the variance for the number of retransmissions is _____.

The number of 911 calls in a small city has a Poisson distribution with a mean of 10.0 calls a day.The standard deviation of the number of 911 calls in a day is _____.

The covariance between two investments is equal to the sum of the variances of the investments.

Which of the following about the binomial distribution is not a true statement?

SCENARIO 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 Scenario 5-11,what is variance of the number of transactions per month for this subscriber?

SCENARIO 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 Scenario 5-8,what is the standard deviation of your profit when Design B is chosen?

SCENARIO 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 Scenario 5-10,what is the probability that at least two of the new employees will be from University B?

SCENARIO 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 Scenario 5-7,what is the expected value gain for the house in neighborhood A?

SCENARIO 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 Scenario 5-5,what is the probability out of the 8 new cars it just received that,when each is tested,no more than half of the cars have defective radios?

In a binomial distribution

SCENARIO 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 Scenario 5-7,if you can invest 10% of your money on the house in neighborhood A and the remaining on the house in neighborhood B,what is the portfolio expected return of your investment?

SCENARIO 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 Scenario 5-9,what is the probability that in the next 1,000 customers,the hotel chain will have fewer than eight mishandled bags?

SCENARIO 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 Scenario 5-7,what is the total variance of value gain if you invest in both houses?

SCENARIO 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 Scenario 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?

SCENARIO 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 Scenario 5-5,what is the probability out of the 8 new cars it just received that,when each is tested,none of the cars have defective radios?

SCENARIO 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 Scenario 5-9,what is the probability that in the next 1,000 custoers,the chain will have at least one mishandled bags?

If the outcomes of a variable follow a Poisson distribution,then them