Chapter 6
Chapter 6
Q:6-1
Example A:
All probabilities are between 0 and 1.
Sum of probabilities: 0.80 + 0.20 = 1.
This is a valid probability distribution.
Example B:
All probabilities are between 0 and 1.
Sum of probabilities: 0.05 + 0.15 + 0.25 + 0.40 + 0.10 = 0.95.
This is NOT a valid probability distribution because the sum of probabil
ities is not equal to 1.
Example C:
All probabilities are between 0 and 1.
Sum of probabilities: 0.30 + 0.60 + 0.40 = 1.30.
This is NOT a valid probability distribution because the sum of probabil
ities is greater than 1.
Q:6-2
(a) P(X = 75):
P(X = 75) = 0.30
(b) P(X ≤ 75):
This is the probability of renting 75 tubes or less. We need to sum the probabilities
for 25, 50, and 75 tubes:
P(X ≤ 75) = P(X = 25) + P(X = 50) + P(X = 75) = 0.20 + 0.40 + 0.30 = 0.90
Q:6-4
1. Expected Value (E(X)):
E(X) = Σ [x * P(x)] = (25 * 0.20) + (50 * 0.40) + (75 * 0.30) + (100 * 0.10)
= 5 + 20 + 22.5 + 10 = 57.5
Therefore, Jane expects to rent an average of 57.5 tubes per day.
2. Variance (Var(X)):
Var(X) = Σ [(x - E(X))^2 * P(x)]
= [(25-57.5)^2 * 0.20] + [(50-57.5)^2 * 0.40] + [(75-57.5)^2 * 0.30] + [(100-
57.5)^2 * 0.10] = 210.25 + 22.5 + 94.5 + 182.25= 509.5
3. Standard Deviation (SD(X)):
SD(X) = √Var(X) = √509.5 ≈ 22.57
Q:6-5
(a) Mean and Standard Deviation:
1. Mean (μ):
μ = Σ [x * P(x)] = (0 * 0.05) + (1 * 0.30) + (2 * 0.25) + (3 * 0.20) + (4 * 0.15) + (5
* 0.05)
= 0 + 0.30 + 0.50 + 0.60 + 0.60 + 0.25
= 2.25
2. Variance (σ²):
We calculate the variance using the same formula as before:
σ² = Σ [(x - μ)² * P(x)]
= [(0-2.25)² * 0.05] + [(1-2.25)² * 0.30] + [(2-2.25)² * 0.25] + [(3-2.25)² * 0.20] +
[(4-2.25)² * 0.15] + [(5-2.25)² * 0.05]
= 0.253125 + 0.421875 + 0.015625 + 0.1125 + 0.421875 + 0.390625
= 1.615625
3. Standard Deviation (σ):
The standard deviation is the square root of the variance:
σ = √σ² = √1.615625 ≈ 1.27
Q:6-6
we can calculate the expected value (E) using the formula:
E = (Value of Winning * Probability of Winning) + (Value of Losing * Probabi
lity of Losing)
E = ($215,000 * 0.00000884) + ($0 * 0.99999116)
E = $1.90 + $0
E = $1.90
Q:6-7
1. Expected Claim Amount:
The maximum claim amount is $5,000.
The probability of a maximum claim is 0.01.
Therefore, the expected claim amount per policy is: $5,000 * 0.01 = $50.
2. Desired Profit per Policy:
The company wants to make a profit of $25 per policy.
3. Required Premium:
To cover the expected claim amount and achieve the desired profit, the premium sh
ould be:
Premium = Expected Claim Amount + Desired Profit
Premium = $50 + $25
Premium = $75
Q:6-8
1. Possible Outcomes and Probabilities:
Winning: The value of winning is $28,000,000. The probability of winning i
s 0.000000023.
Losing: The value of losing is -$1 (the cost of the ticket). The probability of
losing is 1 - 0.000000023 = 0.999999977.
2. Calculating Expected Value:
E = (Value of Winning * Probability of Winning) + (Value of Losing * Probability
of Losing)
E = ($28,000,000 * 0.000000023) + (-$1 * 0.999999977)
E = $0.644 - $0.999999977
E ≈ -$0.36
Q:6-9
1. Possible Outcomes and Probabilities:
Total Loss of Superstructure: Loss of $250 million with a probability of 0.
30.
Total Loss of Facility: Loss of $950 million with a probability of 0.30.
No Loss: Loss of $0 with a probability of 0.40.
2. Calculating Expected Loss:
Expected Loss = (Loss in Scenario 1 * Probability of Scenario 1) + (Loss in Scenar
io 2 * Probability of Scenario 2) + (Loss in Scenario 3 * Probability of Scenario 3)
Expected Loss = ($250 million * 0.30) + ($950 million * 0.30) + ($0 * 0.40)
Expected Loss = $75 million + $285 million + $0
Expected Loss = $360 million
Q:6-10
In this case, the number of tickets purchased (X) ranges from a = 2 to b = 8.
Mean (μ):
μ = (2 + 8) / 2 = 10 / 2 = 5
Q: 6.15
Mean and Standard Deviation:
Mean (μ) = n * π
Standard Deviation (σ) = √ (n * π * (1 - π))
a. n = 8, π = .10
μ = 8 * 0.10 = 0.8
σ = √ (8 * 0.10 * 0.90) ≈ 0.85
b. n = 10, π = .40
μ = 10 * 0.40 = 4
σ = √ (10 * 0.40 * 0.60) ≈ 1.55
c. n = 12, π = .50
μ = 12 * 0.50 = 6
σ = √ (12 * 0.50 * 0.50) ≈ 1.73
Q: 6.16
Mean and Standard Deviation:
a. n = 30, π = .90
μ = 30 * 0.90 = 27
σ = √ (30 * 0.90 * 0.10) ≈ 1.64
b. n = 80, π = .70
μ = 80 * 0.70 = 56
σ = √ (80 * 0.70 * 0.30) ≈ 4.10
c. n = 20, π = .80
μ = 20 * 0.80 = 16
σ = √ (20 * 0.80 * 0.20) ≈ 1.79
Q: 6.17
P(X = x) = ncr * π^x * (1-π)^(n-x)
a. X = 5, n = 9, π = .90
P(X = 5) = 9c5=(126)* 0.9^5 * 0.1^4 ≈ 7.440174x10-3
b. X = 0, n = 6, π = .20
P(X = 0) = 6c0 * 0.2^0 * 0.8^6 ≈ 0.2621
c. X = 9, n = 9, π = .80
P(X = 9) = 9c9* 0.8^9 * 0.2^0 ≈ 0.1342
Q: 6.18
a. X = 2, n = 8, π = .10
P(X = 2) = 8c2* 0.1^2 * 0.9^6 ≈ 0.1488
b. X = 1, n = 10, π = .40
P(X = 1) = 10c1* 0.4^1 * 0.6^9 ≈ 0.0403
c. X = 3, n = 12, π = .70
P(X = 3) = 12c3* 0.7^3 * 0.3^9 ≈ 1.47661866x10-3
Q: 6.23
This scenario can be modeled using a binomial distribution, where:
n = 10 (number of customers)
π = 0.20 (probability of paying with American Express)
(a) Probability that none pay by American Express:
P(X = 0) = 10c0* 0.20^0 * 0.80^10 ≈ 0.1074
(b) Probability that at least two pays by American Express:
This is the complement of 0 or 1 paying with American Express:
P(X ≥ 2) = 1 - P(X ≤ 1) = 1 - [P(X = 0) + P(X = 1)]
We need to calculate P(X = 1) and then subtract both probabilities from 1.
P(X = 1) = 10c1* 0.20^1 * 0.80^9 ≈ 0.2684
P(X ≥ 2) = 1 - (0.1074 + 0.2684) ≈ 0.6242
(c) Probability that fewer than three pay by American Express:
This is equivalent to 2 or fewer paying with American Express:
P (X < 3) = P (X ≤ 2) =P (X = 0) + P (X = 1) + P (X = 2)
We need to calculate P (X = 2) and then sum the probabilities.
P (X = 2) = 10c2 * 0.20^2 * 0.80^8 ≈ 0.3020
P (X < 3) = 0.1074 + 0.2684 + 0.3020 ≈ 0.6778
(d) Expected number who pay by American Express:
Mean (μ) = n * π = 10 * 0.20 = 2
(e) Standard deviation:
Standard Deviation (σ) = √ (n * π * (1 - π)) = √ (10 * 0.20 * 0.80) ≈ 1.26
Q: 6.24
n = 12 (number of repeat customers)
π = 0.05 (probability of having an incorrect address)
(a) Probability that none have an incorrect address:
P (X = 0) = 12c0 * 0.05^0 * 0.95^12 ≈ 0.5404
(b) Probability that one has an incorrect address:
P (X = 1) = 12c1 * 0.05^1 * 0.95^11 ≈ 0.3413
(c) Probability that two have incorrect addresses:
P (X = 2) = 12c2 * 0.05^2 * 0.95^10 ≈ 0.0988
(d) Probability that fewer than three have incorrect addresses:
This is equivalent to 2 or fewer having incorrect addresses:
P(X < 3) = P(X ≤ 2) = P(X = 0) + P(X = 1) + P(X = 2)
P (X < 3) = 0.5404 + 0.3413 + 0.0988 ≈ 0.9805
Q: 6.26
n = 8 (number of car buyers in the sample)
π = 0.60 (probability of using the internet for research)
(a) Probability that all 8 will use the internet:
P(X = 8) = 8c8* 0.60^8 * 0.40^0 ≈ 0.0168
(b) Probability that at least 5 will use the internet:
This involves summing the probabilities for X = 5, 6, 7, and 8.
P(X ≥ 5) = P(X = 5) + P(X = 6) + P(X = 7) + P(X = 8)
We need to calculate each individual probability and then sum them.
P(X = 5) ≈ 0.2787
P(X = 6) ≈ 0.3115
P(X = 7) ≈ 0.1741
P(X ≥ 5) ≈ 0.2787 + 0.3115 + 0.1741 + 0.0168 ≈ 0.7811
(c) Probability that more than 4 will use the internet:
This is the same as the probability of at least 5 using the internet:
P(X > 4) = P(X ≥ 5) ≈ 0.7811
(d) Mean and standard deviation of the distribution:
Mean (μ) = n * π = 8 * 0.60 = 4.8
Standard Deviation (σ) = √(n * π * (1 - π)) = √(8 * 0.60 * 0.40) ≈ 1.39
Q: 6.27
n = 16 (number of passengers)
π = 0.70 (probability of checking bags)
(a) Probability that all will check bags:
P(X = 16) = 16c16* 0.70^16 * 0.30^0 ≈ 0.0028
(b) Probability that fewer than 10 will check bags:
This involves summing the probabilities for X = 0, 1, 2, ..., 9.
P(X < 10) ≈ 0.1556
(c) Probability that at least 10 will check bags:
This is the complement of fewer than 10 checking bags:
P(X ≥ 10) = 1 - P(X < 10) ≈ 1 - 0.1556 ≈ 0.8444
Q: 6.28
n = 12 (number of drivers stopped)
π = 0.15 (probability of having an invalid license)
(a) Probability that none will have an invalid license:
P(X = 0) = 12c0 * 0.15^0 * 0.85^12 ≈ 0.1422
(b) Probability that exactly one will have an invalid license:
P(X = 1) = 12c1* 0.15^1 * 0.85^11 ≈ 0.3012
(c) Probability that at least 2 will have invalid licenses:
This is the complement of 0 or 1 having an invalid license:
P(X ≥ 2) = 1 - P(X ≤ 1) = 1 - [P(X = 0) + P(X = 1)]
P(X ≥ 2) = 1 - (0.1422 + 0.3012) ≈ 0.5566
Q: 6.29
Mean and Standard Deviation:
For a Poisson distribution with parameter λ (average rate of occurrence):
Mean (μ) = λ
Standard Deviation (σ) = √λ
a. λ = 1.0
μ = 1.0
σ = √1.0 = 1.0
b. λ = 2.0
μ = 2.0
σ = √2.0 ≈ 1.41
c. λ = 4.0
μ = 4.0
σ = √4.0 = 2.0
Q: 6.30
Mean and Standard Deviation:
a. λ = 9.0
μ = 9.0
σ = √9.0 = 3.0
b. λ = 12.0
μ = 12.0
σ = √12.0 ≈ 3.46
c. λ = 7.0
μ = 7.0
σ = √7.0 ≈ 2.65
Q: 6.31
Poisson Probabilities:
Q: 6.38
P(X ≥ 1) = 1 - P(X = 0)
Using the Poisson distribution with λ = 2:
P(X ≥ 1) = 1 - 0.1353 ≈ 0.8647
2. (b) Probability of two or more defective cans (X ≥ 2):
P(X ≥ 2) = 1 - P(X ≤ 1)
P(X ≥ 2) = 1 - 0.4060 ≈ 0.5940
Q: 6.43
Analyzing Incorrect Postage in Postal Drop Box:
(a) Expected number with incorrect postage:
For a binomial distribution, the expected value (mean) is:
μ = n * π = 200 * 0.03 = 6
(b) Standard deviation:
σ = √(n * π * (1 - π)) = √(200 * 0.03 * 0.97) ≈ 2.41
(c) Approximate probability of at least 10 letters with incorrect postage:
We can use the Poisson approximation with λ = n * π = 6
P(X ≥ 10) = 1 - P(X ≤ 9) ≈ 0.0414
(d) Approximate probability of fewer than five letters with incorrect postage:
P(X < 5) = P(X ≤ 4) ≈ 0.1512
Q: 6.44
Christmas Lights Bulb Failure:
Using the Poisson approximation with λ = n * π = 100 * 0.01 = 1:
P(X ≥ 2) = 1 - P(X ≤ 1) ≈ 0.2642
Q: 6.45
Mishandled Passenger Bags:
(a) Expected number of mishandled bags:
μ = n * π = 500 * 0.0046 = 2.3
(b) Approximate probability of no mishandled bags:
Using the Poisson approximation with λ = 2.3:
P(X = 0) ≈ 0.1003
(c) Approximate probability of more than two mishandled bags:
P(X > 2) = 1 - P(X ≤ 2) ≈ 0.4447
Hypergeometric Probability
Q: 6.46
Probability calculations
i. N = 10, n = 3, s = 4, P(X = 3)
Calculation: P(X = 3) = (4C3 * 6C0) / 10C3 = 4/120 = 1/30 ≈ 0.0333
ii. N = 20, n = 5, s = 3, P(X = 2)
Calculation: P(X = 2) = (3C2 * 17C3) / 20C5 ≈ 0.13157
iii. N = 36, n = 4, s = 9, P(X = 1)
Calculation: P(X = 1) = (9C1 * 27C3) / 36C4 ≈ 0.44690
iv. N = 50, n = 7, s = 10, P(X = 3)
Calculation: P(X = 3) = (10C3 * 40C4) / 50C7 ≈ 0.10979
Q: 6.47
(a) Hypergeometric Distribution for Top-Freezer Models:
Parameters:
N = 8 (total refrigerators)
n = 4 (sample size)
s = 6 (top-freezer models)
solution:
P(X = 2): This is the probability of getting exactly 2 top-freezer models and 2 s
ide-by-side models. = (6C2 * (8-6) C (4-2)) / 8C4 ≈ 0.2143
P(X = 3): This is the probability of getting exactly 3 top-freezer models and 1 s
ide-by-side model.= (6C3 * (8-6) C (4-3)) / 8C4 ≈ 0.5714
P(X = 4): This is the probability of getting all 4 top-freezer models.
= (6C4 * (8-6) C (4-4)) / 8C4 ≈ 0.2143
Q: 6.48
We will use the hypergeometric distribution formula to calculate the probability for
each possible value of X (number of essay questions) from 0 to 6 (minimum of n a
nd s).
Parameters:
N = 60 (total exercises)
n = 10 (assigned problems)
s = 6 (essay questions)
Calculation:
P(X = x) = (sCx * (N-s)C(n-x)) / NCn
Using this formula or the HYPGEOM.DIST function in Excel, we can calculate th
e probability for each value of X:
P(X = 0) = (6C0 * (60-6)C(10-0)) / 60C6 =0.3174
P(X = 1) = (6C1 * (60-6)C(10-1)) / 60C6 =0.4232
P(X = 2) = (6C2* (60-6)C(10-2)) / 60C6 =0.2070
P(X = 3) = (6C3 * (60-6)C(10-3)) / 60C6 =0.0469
P(X = 4) = (6C4 * (60-6)C(10-4)) / 60C6 =0.51588
P(X = 5) = (6C5 * (60-6)C(10-5)) / 60C6 =0.37901
P(X = 6) = (6C6 * (60-6)C(10-6)) / 60C6 =0.00631