Exam 5: Discrete Probability Distributions

The diameters of 10 randomly selected bolts have a binomial distribution.

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, at most three of the cars have non-defective radios?

If X has a binomial distribution with n = 5 and p = 0.1, then P(X = 2)= ________ .

SCENARIO 5-4 The following table contains the probability distribution for X = the number of traffic accidents reported in a day in a small city in the Midwest. -Referring to Scenario 5-4, the variance of the number of accidents is ________.

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 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?

SCENARIO 5-12 Phone calls arrive at the rate of 50 per hour at the reservation desk for Queen City Airways.The desk manager has asked you for an analysis of the call rates and probabilities to better understand the operation and determine if more call desk workers are needed. -Using Scenario 5-12, What is the probability of receiving exactly three calls in a 6-minute period?

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?

The connotation "expected value" or "expected gain" from playing roulette at a casino means

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, if your investment preference is to maximize your expected profit while exposing yourself to the minimal amount of risk, 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?

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

SCENARIO 5-13 Bell Computers manufactures personal computers at two plants, one in Arkansas and one in Utah.The Arkansas plant has 50 employees; the Utah one has 40 employees.A random sample of 12 employees was selected to complete a job satisfaction questionnaire -Using Scenario 5-13, what is the probability that exactly five of the employees completing the questionnaire were from the Arkansas plant?

The variance of the sum of two investments will be equal to the sum of the variances of the two investments plus twice the covariance between the investments.

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, 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?

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, if your investment preference is to maximize your expected profit and not worry at all about the risk that you must take, 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?

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 four of the new employees will be from University A?

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 standard deviation of the value gain for the house in neighborhood A?

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 probability that exactly ten security transactions will be conducted in one month?

Whenever the binomial distribution will

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 non-defective radios?