Scribd
Upload
256 views3 pages

ECON 1005 Tutorial Sheet - 5

This document contains a tutorial sheet with questions on probability and probability distributions. It includes: 1) A table with data on 520 customers of an insurance company categorized by gender and marital status, and probability questions related to this data. 2) A table with data on 300 calculators manufactured by two companies categorized by company and quality, and probability questions related to this data. 3) A description of an investment company's likelihood of investing in different asset classes in a given year, and a probability question related to this. 4) Data on a smartphone manufacturer's defective phone rates by production plant, and probability questions related to this. 5) Definitions of random variables and probability distributions,

Uploaded by

Ismadth2918388
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
256 views3 pages

ECON 1005 Tutorial Sheet - 5

This document contains a tutorial sheet with questions on probability and probability distributions. It includes: 1) A table with data on 520 customers of an insurance company categorized by gender and marital status, and probability questions related to this data. 2) A table with data on 300 calculators manufactured by two companies categorized by company and quality, and probability questions related to this data. 3) A description of an investment company's likelihood of investing in different asset classes in a given year, and a probability question related to this. 4) Data on a smartphone manufacturer's defective phone rates by production plant, and probability questions related to this. 5) Definitions of random variables and probability distributions,

Uploaded by

Ismadth2918388
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

UNIVERSITY OF THE WEST INDIES

THE DEPARTMENT OF ECONOMICS


ECON1005 – SEMESTER I – 2019/2020
INTRODUCTION TO STATISTICS: Tutorial Sheet #5
Part A: Probability

1. An insurance company collects its data on the gender and marital status of 520 of its customers,
presented in the Table below:

Marital Status

Gender Single Married Divorced Total

Male 65 105 30 200

Female 55 110 85 250

Total 120 215 115 450

What in your view is the modal observation?

A customer is selected at random. Find the probability that the customer is

a) divorced
b) a single male
c) married, given that the customer is female
d) male, given that the customer is not single
e) male or married
f) female or single
g) Are the events “customer is female” and “customer is married” mutually exclusive? Give
reasons for your answer.

h) Are the events “customer is divorced” and “customer is male” mutually independent? Give
reasons for your answer.

2. An independent team inspects 300 calculators manufactured by two companies for being good
or defective. The following gives a two-way classification of these 300 calculators.

  Good Defective
Company A 60 45
Company B 95 100

a. The team selects one calculator randomly from the batch of 300 calculators. What is the
probability that this calculator:
i. Is manufactured by Company B
ii. Is defective
iii. Is good, given it is manufactured by company B
iv. Is manufactured by Company A, given that it is defective.
b. Are the events ‘good’ and ‘defective’ mutually exclusive? Why?
c. Are the events ‘company B’ and ‘company A’ independent? Why?

3. ABC Ltd. is an investment company operating locally in the Trinidad and Tobago financial sector.
A survey of their operations has found that historically the company is 45% likely to invest in
stocks each year, 60% likely to invest in bonds each year and 35% likely to invest in both stocks
and bonds each year. What is the likelihood that next year ABC Ltd. will invest in either stocks or
bonds?

4. A smart phone producer has received a complaint from 10% of their customers that their new
phone is defective. Of those that are defective 35% are produced in the company’s state of the
art manufacturing facility; Plant A. It is also noted that for every 100 phones the company
produces 60 come from Plant A. Determine the likelihood that the phone is defective given that
it was produced in Plant A? Hence determine the likelihood that the phone is not defective and
is produced in Plant A?

Part B: Probability Distributions

5.
a. Define the following:
i. Random Variables
ii. Probability Distributions
b. Explain the similarities and differences of computing the probabilities of discrete
random variables versus continuous random variables.

6. A discrete random variable X has the following distribution.


X 2.8 3.3 4.7 5

Pr(X=x) 0.25 * 0.17 0.02

i. Fill in the blank * giving reasons for your answer.


ii. Compute Pr(X < 4.7).
iii. A student from last year’s class computed the mean of this random variable to
be 3.5.
Do you agree? Justify your position.
7. The following table gives the frequency distribution of the number of errors on each page of a
book.

Errors 0 1 2 3 4

Number of pages 135 18 65 24 30

i. Construct the probability distribution table for the number of errors per page for this book.

ii. Let X denote the number of errors on a page selected at random from this book. Find
P(X ≥ 2).

iii. Use the probability distribution table to compute the standard deviation of the number of errors
on a page of this book.

You might also like