Exam 5: Discrete Probability Distributions

SCENARIO 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 mean number of bad bulbs per shift is 6.0. -Referring to Scenario 5-6, what is the probability that any shift being inspected has produced at least 6.0 bad bulbs.

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 fewer than four or more than eight employees completing the questionnaire are from the Utah plant?

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 mean number of transactions per month for this subscriber?

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 one of the new employees will be from University A?

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 total standard deviation of the profit if you add more shifts to your production lines and choose to produce both designs?

SCENARIO 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 mean number of bad bulbs per shift is 6.0. -Referring to Scenario 5-6, what is the probability that any shift being inspected has produced between 5.0 and 8.0 inclusive bad bulbs.

Suppose that history shows that 60% of college students prefer Brand C cola.A sample of 5 students is to be selected.The probability that fewer than 2 prefer brand C is ________.

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 probability that she does not get audited 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 90% 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 5-8 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 30% of the production lines and Design B for the remaining production lines, what is the expected profit?

The portfolio expected return of two investments

Suppose that history shows that 60% of college students prefer Brand C cola.A sample of 5 students is to be selected.The probability that 2 or fewer prefer brand C is ________.

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 probability that she gets audited no more than 2 times is ________.

In the Excel function BINOM.DIST(), the 'FALSE' argument option determines the cumulative probability will be returned.

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 5-9 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 six mishandled bags?

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 10% of the production lines and Design B for the remaining production lines, what is the risk of your investment?

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 standard deviation of value gain if you invest in both houses?

SCENARIO 5-1 The probability that a smoke alarm will function properly and sound an alarm in the presence of smoke is 0.8.You have 2 such alarms in your home and they operate independently. -Referring to Scenario 5-1, the probability that neither sound an alarm in the presence of smoke 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, what is the standard deviation of the value gain for the house in neighborhood B?