Exam 5: Discrete Probability Distributions

There are currently 18 pit bulls at the pound. Of the 18 pit bulls, four have attacked another dog in the last year. Joe, a member of the staff, randomly selects six of the pit bulls for his group. What is the probability that no more than two of the pit bulls in Joe's group attacked another dog last year?

An investor has a $200,000 portfolio of which $120,000 has been invested in Stock A and the remainder in Stock B. Other characteristics of the portfolio are shown in the accompanying table. The expected return of the portfolio is ________.

How would you characterize a consumer who is risk loving?

The foreclosure crisis has been particularly devastating in housing markets in much of the south and west United States, but even when analysis is restricted to relatively strong housing markets the numbers are staggering. For example, in 2017 an average of three residential properties were auctioned off each weekday in the city of Boston, up from an average of one per week in 2011. What is the probability that no more than two foreclosure auctions occurred on a randomly selected weekday of 2017 in Boston?

An investor owns a portfolio consisting of two mutual funds, A and B, with 35% invested in A. The following table lists the inputs for these funds. The standard deviation for the portfolio return is ________.

According to a Department of Labor report, the city of Detroit had a 20% unemployment rate in May. Eight working-age residents were chosen at random. What was the expected number of unemployed residents, when eight working-age residents were randomly selected?

A risk-averse consumer ignores risk and makes his or her decisions solely on the basis of expected value.

The following table shows the number of students who did not attend statistics class over the 35 class meetings last semester. What is the probability that there will be more than one student absent in class today?

A cumulative probability distribution of a random variable X is the probability P(X = x), where X is equal to a particular value x.

According to a study by the Centers for Disease Control and Prevention, about 33% of U.S. births are Caesarean deliveries. Suppose seven expectant mothers are randomly selected. What is the probability that two of the expectant mothers will have a Caesarean delivery?

Testing whether the computer is infected or not would be best described using binomial probability distribution.

What are the two key properties of a discrete probability distribution?

An investor has a $120,000 portfolio of which $50,000 has been invested in Stock A and the remainder in Stock B. Other characteristics of the portfolio are as follows: a. Calculate the correlation coefficient. B) Calculate the expected return of the portfolio. C) Calculate the standard deviation of the portfolio.

A risk-neutral consumer ignores risk and makes his or her decisions solely on the basis of expected value.

The expected value of a random variable X can be referred to as the population mean.

It is known that 10% of the calculators shipped from a particular factory are defective. What is the probability that at least one in a random sample of four calculators is defective?

A plane taking off from an airport in New York can expect to run into a flock of birds once out of every 1,250 takeoffs. A) What is the expected number of bird strikes for 10,000 takeoffs? B) What is the standard deviation of the number of bird strikes for 10,000 takeoffs? C) What is the probability of running into seven flocks of birds in 10,000 takeoffs?

Consider the following discrete probability distribution. What is the probability that X is 0?

Suppose a baseball team has 14 players on the roster who are not members of the pitching staff. Of those 14 players, assume that three have recently taken a performance-enhancing drug. Suppose the league decides to randomly test five members of the team. What is the probability that at least one of the tested players is found to have taken a performance-enhancing drug?

Thirty percent of the CFA candidates have a degree in economics. A random sample of three CFA candidates is selected. What is the probability that none of them has a degree in economics?