Exam 5: Discrete Probability Distributions

An analyst believes that a stock's return depends on the state of the economy,for which she has estimated the following probabilities: According to the analyst's estimates,the expected return of the stock is ____.

A consumer who is risk neutral is best characterized as ______________________________________________________.

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 2011 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 2005.What is the probability that at least one foreclosure auction occurred in Boston on a randomly selected weekday of 2011?

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

Which of the following can be represented by a discrete random variable?

Which of the following can be represented by a continuous random variable?

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?

According to the Department of Transportation,27% of domestic flights were delayed in 2007 at JFK airport.Five flights are randomly selected at JFK.What is the probability that all five flights are delayed?

The expected value of simple information is the mean of a discrete probability distribution when the discrete random variable is expressed in term of dollars.

Which of the following can be represented by a continuous random variable?

We can think of the expected value of a random variable X as _________________________________________________________.

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

Consider the following probability distribution. The expected value is _____.

A binomial random variable is defined as the number of successes achieved in n trials of a Bernoulli process.

A discrete random variable X may assume an (infinitely)uncountable number of distinct values.

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 2011 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 2005.What is the probability that exactly four foreclosure auctions occurred on a randomly selected weekday of 2011 in Boston?

Assume that the mean success rate of a Poisson process is six successes per hour. a.Find the expected number of successes in a 40-minute period. b.Find the expected number of successes in a three-hour period. c.Find the probability of at least two successes in a 30-minute period.

Chauncey Billups,a current shooting guard for the Los Angeles Clippers,has a career free-throw percentage of 89.4%.Suppose he shoots six free throws in tonight's game.What is the probability that Billups makes all six free throws?

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

In a particular game of cards,success is measured by the number of aces drawn by each player.Eight cards are drawn by the first player.Given that the player is drawing from a full poker deck of 52 cards,find the probability that this player will draw two aces from the deck.