Problem Set 2 - Solutions
Problem Set 2 - Solutions
2. Contingency table:
High Effectiveness Not High Effectiveness Totals
With Strategy 0.1716 0.0671 0.2387
Without Strategy 0.2184 0.5429 0.7613
Totals 0.3900 0.6100 1.0000
Statistics
Mean 8
Variance 1.6
Standard deviation 1.264911
1.0−1.005
(a) P( X < 1) = P (Z < 0.10 ) = P(Z < −0.25) = 0.4013
√25
0.95−1.005 1.0−1.005
(b) P(0.95 < X < 1.0) = P ( 0.10 <Z< 0.10 ) = P(−2.75 < Z <
√25 √25
−0.25) = 0.4013 − 0.0030 = 0.3983
1.0−1.005 1.05−1.005
(c) P(1.0 < X < 1.05) = P ( 0.10 <Z< 0.10 ) = P(−0.25 < Z <
√25 √25
2.25) = 0.9878 − 0.4013 = 0.5865
(d)
0.95−1.005
Solution 1: P((X < 0.95) ∪ (X > 1.05)) = P (Z < 0.10 )+
√25
1.05−1.005
P (Z > 0.10 ) = P(Z < −2.75) + P(Z > 2.25) = 0.0030 +
√25
(1 − 0.9878) = 0.0152
Solution 2: P((X < 0.95) ∪ (X > 1.05)) = 1 − (P(0.95 < X < 1.0) +
P(1.0 < X < 1.05)) = 1 – (0.3983 + 0.5865) = 1 – 0.9848 = 0.0152