Tutorial
Tutorial
Problem 1- A bank is interested in studying the number of people who use the ATM located outside
its office late at night. On average, 1.6 customers walk up to the ATM during any 10 minute interval
between 9pm and midnight. What is lambda λ for this problem? What is the probability of exactly 3
customers using the ATM during any 10 minute interval? What is the probability of 3 or fewer
people?
Problem 2- A lab network consisting of 20 computers was attacked by a computer virus. This virus
enters each computer with probability 0.4, independently of other computers. a) Find the
probability that the virus enters at least 10 computers. b) A computer manager checks the lab
computers, one after another, to see if they were infected by the virus. What is the probability that
she has to test at least 6 computers to find the first infected one?
Problem 3- A baker put 500 raisins into dough, mixed well, and made 100 cookies. You take a
random cookie. What is the probability of finding at least 4 raisins in it? (Hint: use Poisson
approximation to the Binomial distribution of the number of raisins in one cookie.
Problem 4- Suppose that the number of inquiries arriving at a certain interactive system follows a
Poisson distribution with arrival rate of 12 inquiries per minute. Find the probability of 10 inquiries
arriving a) in a 1-minute interval; b) in a 3-minute interval. c. What is the expectation and the
variance of the number of arrivals during each of these intervals?
Problem5- For a credit card company 8% of its customers are defaulters. It is known that 97.725%
non –defaulters have outstanding balance >6000 and only about 6.68 % have balances >20000.
Defaulters credit amount has an IQR =5360 and CV=0.285. Can credit amount be used as
differentiating factor? Why ? . The company has policy of cancelling the card provided
P(default)>=0.75. Should a person who has not paid up in the last “k” months have his card
cancelled? Assume each person has an independent probability of 10% default.
Problem 6- A part requires replacement on average once every 6000 hours of continuous service.
After what time will 90% of parts be need to be replaced. Assume that service life follows
exponential distribution. What is the probability of 2 service requests in 3 years?.
Problem 7- If a distribution of salary of 252 people has Mean=1182.4 and SD of 893.33. How many
people could possibly have a salary greater than 2522.4?
Problem 8- The case of two treatments – Recovery rates of two treatments are indicated for small
injuries and large injuries are given-
Treatment A Treatment B
Small injury 81 out 87 recovered = 93% 234 out of 270 (87%)
Large injury 192 out of 263 =73% 55 out of 80 =69%
Total 273 out of 350 =73% 289 out of 350 = 83%
The treatment A performs better than B if seen separately for small and large injuries but performs
better than B in aggregate. How can this be explained?