Exam 5: Discrete Probability Distributions

TABLE 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 Table 5-5,what is the probability out of the 8 new cars it just received that,when each is tested,none of the cars have defective radios?

The local police department must write,on average,5 tickets a day to keep department revenues at budgeted levels.Suppose the number of tickets written per day follows a Poisson distribution with a mean of 6.4 tickets per day.Find the probability that exactly 6 tickets are written on a randomly selected day from this population.

TABLE 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 Table 5-7,what is the expected value gain if you invest in both houses?

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?

TABLE 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 Table 5-7,if you can invest 30% 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?

TABLE 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 Table 5-11,what is probability that exactly ten security transactions will be conducted in one month?

TABLE 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 Table 5-11,what is probability that fewer than two security transactions will be conducted in one month?

Suppose that past 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 ________.

TABLE 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 Table 5-5,what is the probability out of the 8 new cars it just received that,when each is tested,exactly two of the cars have nondefective radios?

TABLE 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 Table 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?

Suppose that a judge's decisions follow a binomial distribution and that his verdict is incorrect 10% of the time.In his next 10 decisions,the probability that he makes fewer than 2 incorrect verdicts is 0.736.

The number of customers arriving at a department store in a 5-minute period has a binomial distribution.

Another name for the mean of a probability distribution is its expected value.

TABLE 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 Table 5-9,what is the probability that in the next 1,000 customers,the hotel chain will have no more than two or at least eight mishandled bags?

A certain type of new business succeeds 60% of the time.Suppose that 3 such businesses open (where they do not compete with each other,so it is reasonable to believe that their relative successes would be independent).Which of the following distributions would you use to determine the probability that all of them will fail?

TABLE 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 Table 5-8,what is the standard deviation of your profit when Design A is chosen?

The variance of the sum of two investments will be equal to the sum of the variances of the two investments when the covariance between the investments is zero.

The number of power outages at a nuclear power plant has a Poisson distribution with a mean of 6 outages per year.The probability that there will be between 1 and 3 inclusive power outages in a year is ________.

TABLE 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 Table 5-9,what is the probability that in the next 1,000 customers,the hotel chain will have more than ten mishandled bags?

The portfolio expected return of two investments