Exam 5: Discrete Probability Distributions

SCENARIO 5-1 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 5-1, if you can invest half 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 5-2 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 5-2, what is the total standard deviation of the profit if you increase the shift of your production lines and choose to produce both designs?

A company has 125 personal computers.The probability that any one of them will require repair On a given day is 0.025.To find the probability that exactly 20 of the computers will require Repair on a given day, one will use what type of probability distribution?

SCENARIO 5-1 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 5-1, what is the expected value gain for the house in neighborhood A?

SCENARIO 5-1 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 5-1, if you can invest 70% 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 5-1 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 5-1, what is the expected value gain if you invest in both houses?

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

A multiple-choice test has 30 questions.There are 4 choices for each question.A student who Has not studied for the test decides to answer all questions randomly.What type of probability Distribution can be used to figure out his chance of getting at least 20 questions right?

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.

True or False: The number of males selected in a sample of 5 students taken without replacement from a class of 9 females and 18 males has a binomial distribution.

SCENARIO 5-1 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 5-1, if you can invest 70% of your money on the house in neighborhood A and the remaining on the house in neighborhood B, what is the portfolio risk of your investment?

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

SCENARIO 5-2 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 5-2, what is your expected profit when Design A is chosen?

SCENARIO 5-1 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 5-1, what is the standard deviation of the value gain for the house in neighborhood A?

True or False: The diameters of 10 randomly selected bolts have a binomial distribution.

SCENARIO 5-2 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 5-2, what is the variance of your profit when Design A is chosen?

Thirty-six of the staff of 80 teachers at a local intermediate school are certified in Cardio- Pulmonary Resuscitation (CPR).In 180 days of school, about how many days can we expect that The teacher on bus duty will likely be certified in CPR?

SCENARIO 5-1 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 5-1, if your investment preference is to maximize your expected return and not worry at all about the risk that you have to take, 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?