Assignment 3 Probability and Probability distribution

Solve the following unsolved problems from Business Statistics by Ken Black
(Sixth Edition)
Example 4.28(page No. 122), 4.29(page No. 122), 4.41(page No. 130), 4.43(page
No. 130), 5.9 (page No. 153), 5.13 (page No. 154), 5.20 (page no. 163), 5.21 (page
No. 163), 6.3 (page no. 184), 6.4 (page no. 184), 6.7 (page no. 194), 6.9 (page no.
195), 6.28 (page no. 205)

Solve the followings :

1. Calculate expected value and Standard deviation for the following dataset.
Value

Probability

.30

.20

.05

.35

.10

2. A small independent physicians practice has three doctors. Dr. Sarabia sees 41% of
the patients, Dr. Tran sees 32%, and Dr. Jackson sees the rest. Dr. Sarabia requests
blood tests on 5% of her patients, Dr. Tran requests blood tests on 8% of his patients,
and Dr. Jackson requests blood tests on 6% of her patients. An auditor randomly
selects a patient from the past week and discovers that the patient had a blood test
as a result of the physician visit. Knowing this information, what is the probability that
the patient saw Dr. Sarabia? For what percentage of all patients at this practice are
blood tests requested?
3. On Monday mornings, the First National Bank only has one teller window open for
deposits and withdrawals. Experience has shown that the average number of arriving
customers in a four-minute interval on Monday mornings is 2.8, and each teller can
serve more than that number efficiently. These random arrivals at this bank on
Monday mornings are Poisson distributed.
a. What is the probability that on a Monday morning exactly six customers will arrive
in a four-minute interval?
b. What is the probability that no one will arrive?
4. Catalog Age lists the top 17 U.S. firms in annual catalog sales. Dell Computer is
number one followed by IBM and W.W. Grainger. Of the 17 firms on the list, 8 are in
some type of computer-related business. Suppose four firms are randomly selected.
a. What is the probability that none of the firms is in some type of computer-related
business?
b. What is the probability that all four firms are in some type of computer-related
business?

5. According to U.S. Census Bureau figures, 35.3% of all Americans are in the 024 age
bracket, 14.2% are in the 2534 age bracket, 16.0% are in the 3544 age bracket,
and 34.5 are in the 45 and older age bracket. A study by Jupiter Media Metrix
determined that Americans use their leisure time in different ways according to age.
For example, of those who are in the 45 and older age bracket, 39% read a book or a
magazine more than 10 hours per week. Of those who are in the 024 age bracket,
only 11% read a book or a magazine more than 10 hours per week. The percentage
figures for reading a book or a magazine for more than 10 hours per week are 24%
for the 2534 age bracket and 27% the 3544 age bracket. Suppose an American is
randomly selected and it is determined that he or she reads a book or a magazine
more than 10 hours per week. Revise the probabilities that he or she is in any given
age category. Using these figures, what is the overall percentage of the U.S.
population that reads a book or a magazine more than 10 hours per week?
6. Suppose that in the bookkeeping operation of a large corporation the probability of a
recording error on any one billing is .005. Suppose the probability of a recording error
from one billing to the next is constant, and 1,000 billings are randomly sampled by
an auditor.
a. What is the probability that fewer than four billings contain a recording error?
b. What is the probability that between 3 and 6 billings contain a billing error?
7. In a recent year, the average price of a Microsoft Windows Upgrade was $90.28
according to PC Data. assume that prices of the Microsoft Windows Upgrade that year
were normally distributed, with a standard deviation of $8.53. If a retailer of
computer software was randomly selected that year:
a. What is the probability that the price of a Microsoft Windows Upgrade was below
$80?
b. What is the probability that the price was above $95?
c. What is the probability that the price was between $83 and $87?
8. Alex, Alicia, and Juan fill orders in a fast-food restaurant. Alex incorrectly fills 20% of
the orders he takes. Alicia incorrectly fills 12% of the orders she takes. Juan
incorrectly fills 5% of the orders he takes. Alex fills 30% of all orders, Alicia fills 45%
of all orders, and Juan fills 25% of all orders. An order has just been filled.
a. What is the probability that Alicia filled the order?
b. If the order was filled by Juan, what is the probability that it was filled correctly?
c. Who filled the order is unknown, but the order was filled incorrectly. What are the
revised probabilities that Alex filled the order?
9. Companies use employee training for various reasons, including employee loyalty,
certification, quality, and process improvement. In a national survey of companies, BI
Learning Systems reported that 56% of the responding companies named employee
retention as a top reason for training. Suppose 36% of the companies replied that
they use training for process improvement and for employee retention. In addition,

suppose that of the companies that use training for process improvement, 90% use
training for employee retention. A company that uses training is randomly selected.
a. What is the probability that the company uses training for employee retention and
not for process improvement?
b. If it is known that the company uses training for employee retention, what is the
probability that it uses training for process improvement?
c. What is the probability that the company uses training for process improvement?
d. What is the probability that the company uses training for employee retention or
process improvement? e. What is the probability that the company neither uses
training for employee retention nor uses training for process improvement?
10. The U.S. Bureau of Economic Statistics reports that the average annual salary in the
metropolitan Boston area is $50,542. Suppose annual salaries in the metropolitan
Boston area are normally distributed with a standard deviation of $4,246. A Boston
worker is randomly selected.
a. What is the probability that the workers annual salary is more than $60,000?
b. What is the probability that the workers annual salary is less than $45,000?
c. What is the probability that the workers annual salary is more than $40,000?
d. What is the probability that the workers annual salary is between $44,000
and $52,000?
11. A U.S. Bureau of Labor Statistics survey showed that one in five people 16 years of
age or older volunteers some of his or her time. If this figure holds for the entire
population and if a random sample of 150 people 16 years of age or older is taken,
what is the probability that more than 50 of those sampled do volunteer work?