Exam 6: Probability

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An financial advisor tells you that in her estimation there is an 85% chance that a particular stock's price will increase over the next three weeks. a. Which approach was used to produce this figure? b. Interpret the 85% probability.

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If P(A) = 0.65, P(B) =0.76 and P(A B) =0.80, then P(A B) is:

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An investment firm has classified its clients according to their gender and the composition of their investment portfolios (primarily bonds, primarily stocks, or a balanced mix of bonds and stocks). The proportions of clients falling into the various categories are shown in the following table: Portfolio Composition Gender Bonds Stocks Balanced Male 0.18 0.20 0.25 Female 0.12 0.10 0.15 One client is selected at random, and two events A and B are defined as follows: A: The client selected is male. B: The client selected has a balanced portfolio. Express each of the following probabilities in words. a. P(A | B) b. P(B | A). c. P(A∣Bˉ)P ( A \mid \bar { B } ) d. P(Aˉ∣B)P ( \bar { A } \mid B )

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Based on past exam results in principles of accounting you estimate that there is an 83% chance of passing the exam. This is an example of the subjective approach to probability.

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A table of joint probabilities is shown below. 0.15 0.25 0.20 0.10 0.15 0.15 Calculate the marginal probabilities of event B.

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Find the probability that the ice cream was chocolate-flavoured, given that it was sold in a cup.

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If the events A and B are independent, with P(A) = 0.30 and P(B) = 0.40, then the probability that both events will occur simultaneously is:

(Multiple Choice)
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Suppose P(A) = 0.10, P(B) = 0.70, and P(B/A) = 0.80. a. Find P(A B). b. Find P(A B). c. Find P(A | B).

(Short Answer)
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If A and B are independent events, with P(A) = 0.50 and P(B) = 0.70, then the probability that A occurs or B occurs or both occur is:

(Multiple Choice)
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If P(A) = 0.20, P(B) = 0.30 and P(A B) = 0.00, then A and B are:

(Multiple Choice)
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An investment firm has classified its clients according to their gender and the composition of their investment portfolios (primarily bonds, primarily stocks, or a balanced mix of bonds and stocks). The proportions of clients falling into the various categories are shown in the following table: Portfolio Composition Gender Bonds Stocks Balanced Male 0.18 0.20 0.25 Female 0.12 0.10 0.15 One client is selected at random, and two events A and B are defined as follows: A: The client selected is male. B: The client selected has a balanced portfolio. Find the following probabilities. a. P(A) b. P(B) c. P(Aˉ)P ( \bar { A } )

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Two events A and B are said to mutually exclusive if P(A) = P(B).

(True/False)
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A table of joint probabilities is shown below. 0.15 0.25 0.20 0.10 0.15 0.15 Calculate P( A2A _ { 2 } / B1B _ { 1 } ).

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An investment firm has classified its clients according to their gender and the composition of their investment portfolios (primarily bonds, primarily stocks, or a balanced mix of bonds and stocks). The proportions of clients falling into the various categories are shown in the following table: Portfolio Composition Gender Bonds Stocks Balanced Male 0.18 0.20 0.25 Female 0.12 0.10 0.15 One client is selected at random, and two events A and B are defined as follows: A: The client selected is male. B : The client selected has a bal anced portfolio. Are A and Bˉ‾\overline { \bar { B } } mutually exclusive events? Explain.

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A standard admissions test was given at three locations. One thousand students took the test at location A, 600 students at location B, and 400 students at location C.The percentages of students from locations A, B and C who passed the test were 70%, 68% and 77%, respectively.One student is selected at random from among those who took the test. a.What is the probability that the selected student passed the test? b.If the selected student passed the test, what is the probability that the student took the test at location B? c.What is the probability that the selected student took the test at location C and failed?

(Short Answer)
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A table of joint probabilities is shown below. 0.15 0.25 0.20 0.10 0.15 0.15 Calculate P( A1A _ { 1 } B1B _ { 1 } ).

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Find the probability that the ice cream was sold in a cup and the flavour was: a. chocolate. b. strawberry. c. vanilla.

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If P(A) = 0.60, P(B) = 0.58, and P(A B) = 0.70, then P(A B) is:

(Multiple Choice)
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A statistics professor classifies his students according to their gender and the number of hours of paid work they do a week. The following table gives the proportions of students falling into the various categories. One student is selected at random. Paid Work (hours/week) Gender 0 1-8 9-16 Over 16 Male 0.06 0.20 0.15 0.06 Female 0.12 0.18 0.20 0.03 a. If the student selected is female, what is the probability that he works between 1 and 8 hours a week? b. If the selected student works more than 16 hours a week, what is the probability that the student is male? c. What is the probability that the student selected is female or does do any paid work or both? d. Is gender independent of the number of hours of paid work done a week? Explain using probabilities.

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If event A does not occur, then its complement Aˉ\bar { A } must occur.

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