Exam #2 Test Questions Prob

  1. 1) Neighborhood of downtown Baltimore, parking lot charges $7 per day. A car illegally parked on the street will be fined $25 if caught, with a 60% probability of getting caught. Should they park in lot or illegally?
    • C= random variable = cost to park per day if done illegally.
    • C can take values A= {25,0}

    • P(f=25)= 0.60 [Prob. of getting caught 60%, price of $25]
    • P(c=0)= 0.40 [Prob. of not getting caught 40%, price $0]

    • E(c)= 25 P(c=25) + 0 P(c=0)
    •       = 25 (0.60) + 0 (0.40)
    •       = $15, eventually it will be worth it to park in the neighborhood instead of illegally.
  2. 2) In a lottery, a player pays $1 and selects four distinct numbers from 0 to 9. Then, from an urn containing 10 identical balls numbered from 0 to 9, four balls are drawn at random
    and without replacement. If the numbers of three or all four of these balls matches the player’s numbers, he wins $5 and $10, respectively. Otherwise, he loses. On the average,
    how much money does the player gain per game? (Gain = win − loss.)
    • G= Gain= Win-Loss
    • Value G can take A= {10-1, 5-1, 0-1} = {9,4,-1}

    E(G)= 9*P(G=9)+4(P=4)-P(G=-1)





  3. 3) Mr. Jones is about to purchase a business. There are 2 businesses available. The first has a daily expectation profit of $150 and a std. dev. of $30. The 2nd had a daily profit of $150 and a std. dev. of $55. If Mr. Jones is interested in the most steady daily average profit, what business should he purchase?
    • Cheby Chev's Inequality:

    Let's choose k=2, 2 std. devs.= 2σ (This should be in the question like "use 2 std. dev's)

    1st business: 

    2nd business: 
  4. 4) Side length of random cubic die manufactured by a factory is a random number between 1 and 1.25 cm. What is probability that volume of randomly selected die is greater than 1.424 cm³?
    • L is a random variable        } 
    • L³ is also a random variable}
    • These two are interested in
    • P(L³>1.424=P(L>∛1.424)



    = 0.4998
  5. 5) In USA, probability of twins being born is . Let x=# of births at hospital till first twin is born. Calculate the percent a twin is born on the ith birth. Note a twin is born  and a nontwin birth is .
    Calculate P(x=i)
    A= {T, NT, NNT, NNNT, NNNNT, ...}

    The event A=i is associated with NNN...NT (This represents i-1. The NT is the ith birth)

  6. 6) Someone claimed that  is a main function and I have to check that it is.
    For n= 0,1,2,..., insurance claims filed per week.

    Check 

    We need to check  

Author
GoBroncos
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364661
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Exam #2 Test Questions Prob
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