Session - 7 - Problem Set-Solution - PK

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A binomial probability distribution has p = .20 and n = 100.

a. What are the mean and standard deviation?


b. Is this situation one in which binomial probabilities can be approximated by the normal probability distribution?
c. What is the probability of exactly 24 successes?
d. What is the probability of 18 to 22 successes?
e What is the probability of 15 or fewer successes?
mean= 20
normal approxmiation SD = 4
mean np 20 n(1-p)>=5 z=(x-mean)/SD
SD sqrt(np(1-p)) 4 np>=5
Binomial Appx Normal area under the curve
P(x=24) P(23.5<=x<=24.5) z1,z2… P(0.875<=x<=1.125) 0.0605
P(18<=x<=22) P(17.5<=x<=22.5) 0.46
P(x<=15) P(x<=15.5)
rmal probability distribution? Explain. YES

z=(x-mean)/SD

area under the curve


a. m = np = 100(.20) = 20

s2 = np (1 - p) = 100(.20) (.80) = 16

  16  4

b. Yes because np = 20 and n (1 - p) = 80

c. P(23.5 <= x <= 24.5)

24.5  20 P (z <= 1.13) = .8708


z  1.13
4
23.5  20 P (z <= .88) = .8106
z  .88
4
P(23.5 <= x <= 24.5) = .8708 - .8106 = .0602

d. P(17.5 <= x <= 22.5)

22.5  20 P (z <= .63) = .7357


z  .63
4
17.5  20 P (z <= -.63) = .2643
z  .63
4
P(17.5 <= x <= 22.5) = .7357 - .2643 = .4714

e. P(x <= 15.5)

15.5  20
z  1.13
4
P(x £ 15.5) = P (z £ -1.13) = .1292
An Internal Revenue Oversight Board survey found that 82% of taxpayers said that it was very important for the Int
a. For a sample of eight taxpayers, what is the probability that at least six taxpayers say that it is very important to e
b. For a sample of 80 taxpayers, what is the probability that at least 60 taxpayers say that it is very important to ens
c. As the number of trails in a binomial distribution application becomes large, what is the advantage of using the n
d. When the number of trials for a binominal distribution application becomes large, would developers of statistica

82% experiment - binomial outcomes : cheat or don't cheat

a n=8 x- random discrete variable p=0.82 Minitab, SPSS…..........inbuit functio,, n =


P(x>=6)= f(6)+f(7)+f(8) 83.92%
f(x) = (fact(n)/fact(x)*fact(n-x))*…..
f(6) = 0.2758
f(7) = 0.3590
f(8)
b n = 80
P(x>=60) = f60+f61+f62+f63…............................f80
Approx. Normal ????
np>=5
n(1-p)>=5 x = 59.5 mean = np = 65.6 z = (x -mean)/SD
Binomial App nor SD = 3.44
P(x>=60) P(x>=59.5)P(z>=-1.78)
area under the curve
0.9625
was very important for the Internal Revenue Service (IRS) to ensure that high-income tax payers do not cheat on their tax returns (The Wa
ay that it is very important to ensure that high-income tax payers do not cheat on their tax returns? Use the binomial distribution probabil
that it is very important to ensure that high-income tax payers do not cheat on their tax returns? Use the normal approximation of the bin
s the advantage of using the normal approximation of the binomial distribution to compute probabilities?
would developers of statistical software packages prefer to use the binomial distribution probability function shown in Section 5.5 or the n

SPSS…..........inbuit functio,, n = 50
t on their tax returns (The Wall Street Journal, February 11, 2009).
binomial distribution probability function shown in Section 5.4 to answer this question.
rmal approximation of the binomial distribution to answer this question.

n shown in Section 5.5 or the normal approximation of the binomial distribution shown in Section 6.3? Explain.
a. n n!
f ( x)    p x (1  p ) n  x  p x (1  p ) n  x
x
  x !( n  x )!
n = 8, p = .82

P ( x  6)  f (6)  f (7)  f (8)

8!
f (6)  .826 (1  .82)8  6  28(.82) 6 (1  .82) 2  .2758
6!(8  6)!
8!
f (7)  .827 (1  .82) 8 7  8(.82) 7 (1  .82)1  .3590
7!(8  7)!
8!
f (8)  .828 (1  .82)8 8  1(.82) 8 (1  .82) 0  .2044
8!(8  8)!
P( x  6)  f (6)  f (7)  f (8)  .2758  .3590  .2044  .8392

b. m = np = (80)(.82) = 65.6

s2 = np(1-p) = 80(.82)(1-.82) = 11.808

  11.8080  3.4363

Allowing for the continuity correction factor,


P( x  60)  P ( x  59.5)

At x = 59.5,
x   59.5  65.6 P ( x  59.5)  1  .0375  .9625
z   1.78
 3.4363

c. The advantage of using the normal approximation of the binomial distribution is that it eases

d. Students may be tempted to say that with the speed of computers, the developers
5)  1  .0375  .9625

ial distribution is that it eases and simplifies the calculations required to obtain the desired probability. For part (b) with n = 80, we would

of computers, the developers of statistical software would be able to use the binomial probability function f(x) as described in part (c) and
part (b) with n = 80, we would have had to compute f(60) + f(61) + f(62) + … + f(80) using the binomial probability function f(x). This would

(x) as described in part (c) and compute the exact probability rather than the normal approximation. However, developers of statistical so
bility function f(x). This would have been tedious and time consuming.

ver, developers of statistical software are also interested in fast, efficient, and easy to program computational procedures provided such p
al procedures provided such procedures provide reliable and accurate answers. With a large number of trials, the normal approximation o
s, the normal approximation of the binomial probability distribution is very good. Statistical software developers may chose to use the no
pers may chose to use the normal approximation of the binomial probability distribution in some statistical routines. For example, Minita
routines. For example, Minitab uses the normal approximation of binomial probabilities in the Nonparametric sign test whenever n is grea
ric sign test whenever n is greater than 50.
Playing video and computer games is very popular. Over 70% of households play such games.
Of those individuals who play video and computer games, 18% are under 18 years old, 53% are 18–59 years old, an
a. For a sample of 800 people who play these games, how many would you expect to be under 18 years of age?
b. For a sample of 600 people who play these games, what is the probability that fewer than 100 will be under 18 y
c. For a sample of 800 people who play these games, what is the probability that 200 or more will be over 59 years
p
under 18 0.18 z= (x-mean)/SD
18 - 59 0.53
<59 0.29
n p np(mean) n(1-p) SDsqrt(np(1-P)) binomial Appx Norm
a 800 0.18 144 656 10.86646
b 600 0.18 108 492 9.410632 P(x<100) P(x<99.5)
c 800 0.29 232 568 12.83433 P(x>=200) P(x>=199.5)
such games.
s old, 53% are 18–59 years old, and 29% are over 59 years old (The Wall Street Journal, March 6, 2012).
t to be under 18 years of age?
fewer than 100 will be under 18 years of age?
200 or more will be over 59 years of age?

z area under

0.184
P(z>=-2.53)
0.9943
a. m = np = 800(.18) = 144

b. m = np = 600(.18) = 108

  np (1  p )  (600)(.18)(.82)  9.4106

For x < 100, use the continuity correction to find P(x < 99.5)

At x = 99.5,

x   99.5  108 P (z < -.90) = .1841


z   .90
 9.4106
P(x < 99.5) = .1841

The probability that less than 100 individuals will be under 18 years of age is .1841.

c.   np (1  p)  (800)(.29)(.71)  12.8343

For x = 200 or more, use the continuity correction to find P(x ≥ 199.5)

At x = 199.5,

x   199.5  232
z   2.53 P (z ≥ -2.53) = 1 - .0057 = .9943
 12.8343
P(x ≥ 199.5) = .9943

The probability that 200 or more individuals will be over 59 is .9943.


ears of age is .1841.
A Bureau of National Affairs survey found that 79% of employers provide their workers with a two-day paid Thanks
a. What is the probability that at least 85 of the employers provide a two-day paid Thanksgiving holiday?
b. What is the probability that between 90 and 100 employers provide a two-day paid Thanksgiving holiday? That is
c. What is the probability that less than 20 employers provide a one-day paid Thanksgiving holiday?
rs with a two-day paid Thanksgiving holiday with workers off both Thursday and Friday (USA Today, November 12, 2009). Nineteen percen
anksgiving holiday?
d Thanksgiving holiday? That is, what is P(90 <= x <= 100)?
giving holiday?
er 12, 2009). Nineteen percent of employers provide a one-day paid holiday with workers off Thanksgiving Day. Two percent of employers
Day. Two percent of employers do not provide a paid Thanksgiving holiday. Consider a sample of 120 employers.
a. m = np = 120(.79) = 94.8

  np (1  p )  (120)(.79)(.21)  4.46

The probability that at least 85 employers provide a two-day Thanksgiving holiday = P(x³ 84.5).

At x =84..5

x   84.5  94.8
z   2.31
 4.46
Therefore,
P( x  84.5)  1  P ( z  2.31)  1  .0104  .9896

b. Find the normal probability:


P (89.5  x  100.5)
At x = 100.5

x   100.5  94.8
z   1.28
 4.46
P(x<100.5) = P(z<1.28) = .8997

At x = 89.5,

x   89.5  94.8
z   1.19
 4.46
P(x< 89.5) = P(z< -1.19) = .1170

Therefore,
P(89.5  x  100.5) 1

c. m = np = 120(.19) = 22.8

  np(1  p)  (120)(.19)(.81)  4.30

The probability less than 20 employers provide a one-day Thanksgiving holiday = P(


At x = 19..5

x   19.5  22.8
z   .77
 4.30
Therefore,
P( x  19.5)  P( z  .77)  .2206
holiday = P(x³ 84.5).

-day Thanksgiving holiday = P(x< 19.5).


Television viewing reached a new high when the Nielsen Company reported a mean daily viewing time of 8.35 hour
a. What is the probability that a household views television between 5 and 10 hours a day?
b. How many hours of television viewing must a household have in order to be in the top 3% of all television viewin
c. What is the probability that a household views television more than 3 hours a day?
daily viewing time of 8.35 hours per household (USA Today, November 11, 2009). Use a normal probability distribution with a standard dev

top 3% of all television viewing households?


stribution with a standard deviation of 2.5 hours to answer the following questions about daily television viewing per household.
ewing per household.
Use m = 8.35 and s = 2.5

a.      We want to find P(5 ≤ x ≤10)

At x = 10,
x   10  8.35
z   .66
 2.5

At x = 5,
x   5  8.35
z   1.34
 2.5
P(5 ≤ x ≤ 10) = P(-1.34 ≤ z ≤ .66)= P(z ≤ .66) - P(z ≤ -1.34)
0.6553
0.6553

The probability of a household viewing television between 5 and 10 hours a day is

b.      Find the z-value that cuts off an area of .03 in the upper tail. Using a cumulative probability of
1 - .03 = .97, z = 1.88 provides an area of .03 in the upper tail of the normal distribution.

x = m + zs = 8.35 + 1.88(2.5) = 13.05 hours

A household must view slightly over 13 hours of television a day to be in the top 3% of television viewing
c. At x = 3,

P(x>3) = 1 - P(z< -2.14) = 1 - .0162 = .9838

x   3  8.35
z   2.14
 2.5

The probability a household views more than 3 hours of television a day is .9838.
ween 5 and 10 hours a day is .6553.

cumulative probability of
l distribution.

he top 3% of television viewing households.


The time needed to complete a final examination in a particular college course is normally
distributed with a mean of 80 minutes and a standard deviation of 10 minutes. Answer the following questions.
a. What is the probability of completing the exam in one hour or less?
b. What is the probability that a student will complete the exam in more than 60 minutes but less than 75 minutes?
c. Assume that the class has 60 students and that the examination period is 90 minutes in length. How many studen
er the following questions.

utes but less than 75 minutes?


es in length. How many students do you expect will be unable to complete the exam in the allotted time?
a. P(z ≤ -2) = .0228. So P(x < 60) = .0228 60  80
z  2
10
b. At x = 60
Area to left is .0228 60  80
z  2
10
At x = 75
Area to left is .3085 75  80
z  .5
10
P(60 <= x <= 75) = .3085 - .0228 = .2857

90  80
c. P(z ≤ 1) = P(x ≤ 90) = .1587 z 1
10

Therefore 15.87% of students will not complete on time.

(60) (.1587) = 9.52

We would expect 9 or 10 students to be unable to complete the exam in time.


e exam in time.
The time between arrivals of vehicles at a particular intersection follows an exponential
probability distribution with a mean of 12 seconds.
a. Sketch this exponential probability distribution.
b. What is the probability that the arrival time between vehicles is 12 seconds or less?
c. What is the probability that the arrival time between vehicles is 6 seconds or less?
d. What is the probability of 30 or more seconds between vehicle arrivals?

NOT INCLUDED IN COURSE


Comcast Corporation is the largest cable television company, the second largest Internet service provider, and the f
a. What is the probability that the cable service will be repaired in one hour or less?
b. What is the probability that the repair will take between one hour and two hours?
c. For a customer who calls the Comcast office at 1:00 P.M., what is the probability that the cable service will not be

NOT INCLUDED
net service provider, and the fourth largest telephone service provider in the United States. Generally known for quality and reliable servic

at the cable service will not be repaired by 5:00 P.M.?


n for quality and reliable service, the company periodically experiences unexpected service interruptions. On January 14, 2009, such an int
n January 14, 2009, such an interruption occurred for the Comcast customers living in southwest Florida. When customers called the Comc
en customers called the Comcast office, a recorded message told them that the company was aware of the service outage and that it was
service outage and that it was anticipated that service would be restored in two hours. Assume that two hours is the mean time to do the
rs is the mean time to do the repair and that the repair time has an exponential probability distribution.
Assume that the test scores from a college admissions test are normally distributed, with a mean of 450 and a stand
a. What percentage of the people taking the test score between 400 and 500?
b. Suppose someone receives a score of 630. What percentage of the people taking the test score better? What per
c. If a particular university will not admit anyone scoring below 480, what percentage of the persons taking the test
with a mean of 450 and a standard deviation of 100.

he test score better? What percentage score worse?


of the persons taking the test would be acceptable to the university?
a. At 400,
400  450
z  .500
100 Area to left is .3085
At 500,
500  450
z  .500
100 Area to left is .6915

P(400 £ x £ 500) = .6915 - .3085 = .3830

38.3% will score between 400 and 500.

b. At 630,
630  450
z  1.80
100 96.41% do worse and 3.59% do better .

c. At 480,
480  450
z  .30
100 Area to left is .6179
38.21% are acceptable.
Area to left is .3085

Area to left is .6915

Area to left is .6179


According to Salary Wizard, the average base salary for a brand manager in Houston, Texas, is $88,592 and the aver
a. What is the probability that a brand manager in Houston has a base salary in excess of $100,000?
b. What is the probability that a brand manager in Los Angeles has a base salary in excess of $100,000?
c. What is the probability that a brand manager in Los Angeles has a base salary of less than $75,000?
d. How much would a brand manager in Los Angeles have to make in order to have a higher salary than 99% of the
Texas, is $88,592 and the average base salary for a brand manager in Los Angeles, California, is $97,417 (Salary Wizard website, February 2
s of $100,000?
cess of $100,000?
s than $75,000?
higher salary than 99% of the brand managers in Houston?
ary Wizard website, February 27, 2008). Assume that salaries are normally distributed, the standard deviation for brand managers in Hous
n for brand managers in Houston is $19,900, and the standard deviation for brand managers in Los Angeles is $21,800.
a. At 100,000
100, 000  88,592
z  .57
19,900
P(x > 100,000) = P(z > .57) = 1 - P(z £ .57) = 1 - .7157 = .2843

The probability of a Houston brand manager having a base salary in excess of $100,000 is .284

b. At 100,000
100, 000  97, 417
z  .12
21,800
P(x > 100,000) = P(z > .12) = 1 - P(z £ .12) = 1 - .5478 = .4522

The probability of a Los Angeles brand manager having a base salary in excess of $100,000 is .4522

c. At x = 75,000
75, 000  97, 417
z  1.03
21,800
P(x < 75,000) = P(z < -1.03) = .1515

The probability of a Los Angeles brand manager receiving a base salary below $75,000 is smal

d. The answer to this is the Houston brand manager base salary that cuts off an area of .01 in the

Use z = 2.33

x = 88,592 + 2.33(19,900) = 134,959

A Los Angeles brand manager who makes $134,959 or more will earn more than 99% of the H
y in excess of $100,000 is .2843.

0,000 is .4522

e salary below $75,000 is small: .1515

at cuts off an area of .01 in the upper tail of the distribution for Houston brand managers.

l earn more than 99% of the Houston brand managers.


The NCAA estimates that the yearly value of a full athletic scholarship at in-state public universities is $19,000 (The
a. For the 10% of athletic scholarships of least value, how much are they worth?
b. What percentage of athletic scholarships are valued at $22,000 or more?
c. For the 3% of athletic scholarships that are most valuable, how much are they worth?
ic universities is $19,000 (The Wall Street Journal, March 12, 2012). Assume the scholarship value is normally distributed with a standard d
y distributed with a standard deviation of $2100.
a. Find the z value that cuts off an area of .10 in the lower tail.

From the standard normal table z ≈ -1.28. Solve for x,

x  19, 000
z  1.28 
2100
x = 19,000 – 1.28(2100) = 16,312

10% of athletic scholarships are valued at $16,312 or less.

b. x   22, 000  19, 000


z   1.43
 2100
P(x ≥ 22,000) = 1 – P(z ≤ 1.43) = 1 - .9236 = .0764

7.64% of athletic scholarships are valued at $22,000 or more.

c. Find the z value that cuts off an area of .03 in the upper tail: z = 1.88. Solve for x,

x  19, 000
z  1.88 
2100
x = 19,000 + 1.88(2100) = 22,948

3% of athletic scholarships are valued at $22,948 or more.


per tail: z = 1.88. Solve for x,

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