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2, 0 < x
1
< x
2
< 1
0 elsewhere
(a) Give the marginal distribution of X
1
.
(b) Give the conditional distribution of |
X
1
[X
2
(x
1
|x
2
).
(c) Calculate Corr(X
1
, X
2
). (1+2+2 Marks)
QM1 - Mid Term 7
6. The time (in minutes) between telephone calls at an insurance claims oce has the
following exponential probability distribution. with mean 2 minutes
(a) What is the median time between telephone calls?
(b) What is the probability of having 30 seconds or less between telephone calls?
(c) What is the probability of having 5 or more minutes without a telephone call?
(d) What is the probability of having one minute to next telephone call given that the
previous call was two minutes ago?
(1+1+1+2 Marks)
QM1 - Mid Term 8
7. A state politician would like to determine the average amount earned during summer
employment by state teenagers during the past summers vacation period. He wants
to have 95% condence that the sample mean is within Rs 1K( 1K=One thousand) of
the actual population mean. Based on past studies, she has estimated the population
standard deviation to be = Rs 8K. ( Write all required theoretical steps to derive the
sample size. This question is not intended use the direct formula for sample size) (4
Marks)
QM1 - Mid Term 9
8. The crowd for a music event might be small (with a probability of 0.4) or large. The
organisers can pay a consultant to collect and analyse advance ticket sales one week
before the event takes place. Then advance sales can be classied as high, average or
low, with the probability of advanced sales conditional on crowd size given by this table:
Advance Sales
Crowd size high average low
large 0.7 0.3 0.0
small 0.2 0.2 0.6
The organisers must choose one of two plans in running the event, and the table below
gives the net prot in thousands of rupees for each combination of plan and crowd size.
Crowd size Plan 1 Plan 2
large 20 28
small 18 10
If the organisers use information about advance sales, what decisions would maximise
their expected prots? How much should they pay for the information on advance sales?
(3+2 Marks)
QM1 - Mid Term 10
QM1 - Mid Term 11
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(please do not remove this page from the test booklet)
QM1 - Mid Term 12
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QM1 - Mid Term 13