PREMIUM COLLEGE

DEPARTMENT OF ECONOMICS

STATISTICS FOR ECONOMISTS INDIVIDUAL ASSIGNMENT I

PREPARED BY: EYUEL SAHLU (UG/102/12))

SUBMITTED TO: Mr. ALEM SHUMIYE

JANUARY, 2022

1. Magnetic resonance imaging (MRI) is a process that produces internal body images
using a strong magnetic field. Some patients become claustrophobic and require
sedation because they are required to lie within a small, enclosed space during the MRI
test. Suppose that 20% of all patients undergoing MRI testing require sedation due to
claustrophobia. If five patients are selected at random, find the probability that the
number of patients in these five who require sedation is

a. exactly 2 b. none

P ( x ) =¿ nCx p x q n−x P ( x ) =¿ nCx p x q n−x

P ( x=2 )=¿ 5C2( 0.2 )2 (0.8)5−2 P ( x=0 )=¿ 5C0( 0.2 )0 ( 0.8 )5−0
2 3 5
P ( x=2 )=10 ( 0.2 ) ( 0.8 ) P ( x=0 )=1 ×1 × ( 0.8 )

P ( x=2 )=10 ×0.04 ×0.512 P ( x=0 )= ( 0.8 )5

P ( x=2 )=0.2048 P ( x=0 )=0.32768

2. A washing machine in a Laundromat breaks down an average of three times per month.
Using the Poisson probability distribution formula, find the probability that during the
next month this machine will have

a) exactly two breakdowns

e−λ λ x
P ( x) =
x! b) at most one breakdown.
e−3 ( 3 )2 0.04978707 ×9
P ( x=2 )= = P ( x ≤ 1 )=P ( x =0 ) + P ( x=1 )
2! 2
P ( x=2 )=0.2240 e−3 (3)0 e−3 (3)1
P ( x ≤ 1 )= +
0! 1!

0.049787× 1 0.049787 ×3
P ( x ≤ 1 )= +
1 1

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P ( x ≤ 1 )=0.04978+0.1494 P ( x ≤ 1 )=0.1992

3. A household receives an average of 1.7 pieces of junk mail per day. Find the probability
that this household will receive exactly 3 pieces of junk mail on a certain day.
e−λ λ x
P ( x) =
x!
e−1.7 ( 1.7 )3 0.18268× 4.913
P ( x=3 )= =
3! 6
P ( x=3 )=0.1496
4. Twenty corporations were asked whether or not they provide retirement benefits to
their employees. Fourteen of the corporations said they do provide retirement benefits
to their employees, and 6 said they do not. Five corporations are randomly selected
from these 20. Find the probability that

a) exactly 2 of them provide b) none of them provides retirement

retirement benefits to their benefits to their employees.
employees.
P ( x ) =¿ nCx p x q n−x
P ( x ) =¿ nCx p x q n−x
14
p= =0.7
14 20
p= =0.7
20
P ( x=0 )=¿ 5C0( 0.7 )0 ( 0.3 )5−0
P ( x=2 )=¿ 5C2( 0.7 )2 ( 0.3 )5−2
P ( x=0 )=1 ×1 × ( 0.3 )5
P ( x=2 )=¿10× 0.49× 0.027
P ( x=0 )=0.00243
P ( x=2 )=0.1323

5. An Internal Revenue Service inspector is to select 3 corporations from a list of 15 for tax
audit purposes. Of the 15 corporations, 6 earned profits and 9 incurred losses during the year
for which the tax returns are to be audited. If the IRS inspector decides to select 3
corporations randomly, find the probability that the number of corporations in these 3 that
incurred losses during the year for which the tax returns are to be audited is

a) exactly 2 9 15−9 9 6
P ( x=2 )=
( 2)( 3−2 ) ( 2)( 1 )
=
K N−K
P ( x=k ) =
( k )( n−k ) ( 3 ) (153)
15

( Nn ) P ( x=2 )=
36 ×6 216
= =0.4747
455 455

b) none

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 K N−K 9 15−9 9 6
P ( x=k ) =
( k )( n−k )
P ( x=0 )=
( 0 )( 3−0 ) ( 0 )( 3 )
=
( Nn ) ( 3 ) (153 )
15

1 ×20 20
P ( x=0 )= = =0.04395
455 455

c) at most 1

K N−K
P ( x=k ) =
( k )( n−k )

( Nn )
P ( x ≤ 1 )=P ( x =0 ) + P( x=1)

9 15−9 9 15−9
P ( x ≤ 1 )=
( )(
0 3−0 ) +
( 1 )( 3−1 )

( 153) (153 )
9 6 9 6
P ( x ≤ 1 )=
( 0 )( 3) ( 1 )( 2)
+
( 3 ) (153)
15

1 ×20 9 ×15
P ( x ≤ 1 )= +
455 455

P ( x ≤ 1 )=0.04395+0.2967

P ( x ≤ 1 )=0.3407

6. A really bad carton of 18 eggs contains 7 spoiled eggs. An unsuspecting chef picks 4 eggs at
random for his “Mega-Omelet Surprise.” Find the probability that the number of unspoiled
eggs among the 4 selected is
a) exactly 4

K N−K
P ( x=k ) =
( k )( n−k )

( Nn )

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 11 18−11
P ( x=4 )=
( 4 )( 4−4 )

(184)
11 7
P ( x=4 )=
( 4 )( 0 )

( 184)
330 ×1
P ( x=4 )=
3060

P ( x=4 )=0.1078

b) 2 or fewer

K N−K
P ( x=k ) =
( k )( n−k )

( Nn )
P ( x ≤ 2 )=P ( x=0 ) + P ( x=1 ) + P(x=2)
11 18−11 11 18−11 11 18−11
P ( x ≤ 2 )=
( )( ) ( )( ) ( )( )
0 4−0
+
1 4−1
+
2 4−2
18 18 18
( )4 ( ) ( )4 4
11 7 11 7 11 7
P ( x ≤ 2 )=
( )( ) ( )( ) ( )( )
0 4
+
1 3
+
2 2
18 18 18
( ) ( ) ( )
4 4 4
1× 35 11 ×35 55 × 21
P ( x ≤ 2 )= + +
3060 3060 3060
35 385 1155
P ( x ≤ 2 )= + +
3060 3060 3060
1575
P ( x ≤ 2 )=
3060
P ( x ≤ 2 )=0.5147
c) more than 1

K N−K
P ( x=k ) =
( k )( n−k )

( Nn )
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 P ( x>1 ) =P ( x=2 )+ P ( x=3 ) + P( x =4)

11 18−11 11 18−11 11 18−11

P ( x>1 ) =
( 2 )( 4−2 ) +
( 3 )( 4−3 ) +
( 4 )( 4−4 )

(184) (184) (184 )

11 7 11 7 11 7
P ( x>1 ) =
( 2 )( 2 ) ( 3 )( 1 ) ( 4 )( 0 )
+ +
( 4 ) ( 4 ) (184 )
18 18

55 ×21 165× 7 330 ×1

P ( x>1 ) = + +
3060 3060 3060
1155 1155 330
P ( x>1 ) = + +
3060 3060 3060
2640
P ( x>1 ) = =0.8628
3060
7. Forty-five percent of the adult populations in a particular large city are women. A court
is to randomly select a jury of 12 adults from the population of all adults of this city.
a) Find the probability that none of the 12 jurors is a woman.
P ( x ) =¿ nCx p x q n−x
P ( x=0 )=¿ 12C0( 0.45 )0 ( 0.55)12−0
12
P ( x=0 )=1 ×1 × ( 0.55 )
P ( x=0 )=0.0008
b) Find the probability that at most 4 of the 12 jurors are women.
P ( x ) =¿ nCx p x q n−x
P ( x ≤ 4 )=P ( x=4 ) + P ( x=3 )+ P ( x=2 )+ P ( x=1 ) + P( x=0)

¿ ( 124) ( 0.45 ) ( 0.55 ) +(123) ( 0.45 ) ( 0.55) +(122)( 0.45 ) ( 0.55 ) +(121)( 0.45 ) ( 0.55 ) +(120)( 0.45 ) ( 0.55)
4 12−4 3 12−3 2 12−2 1 12−1 0 12−0

¿ 12 ( 0.45 )4 ( 0.55 )8 + 12 ( 0.45 )3 ( 0.55 )9 + 12 ( 0.45 )2 ( 0.55 )10+ 12 ( 0.45 )1 ( 0.55 )11 + 12 ( 0.45 )0 ( 0.55 )12
( ) ( ) ( ) ( ) ( )
4 3 2 1 0

¿ 495 × 0.0410× 0.0084+220 × 0.0911 ×0.0046+66 × 0.2025 ×0.0025+12 ×0.45 ×0.0014 +1× 1× 0.0008

P ( x ≤ 4 )=0.1699+0.0923+ 0.0339+ 0.0075+0.0008

P ( x ≤ 4 )=0.3044

c) Let x denote the number of women in 12 adults selected for this jury. Obtain the
probability distribution of x.

P ( x ) =¿ nCx p x q n−x

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 P ( x=0 )=¿ 12C0( 0.45 )0 ( 0.55)12=1 ×1 ×0.0008=0.0008

P ( x=1 )=¿ 12C1( 0.45 )1 (0.55)11 =12× 0.45× 0.0014=0.0075

P ( x=2 )=¿ 12C2( 0.45 )2 (0.55)10=66 × 0.2025× 0.0025=0.0339

P ( x=3 )=¿ 12C3( 0.45 )3 (0.55)9=220× 0.0911 ×0.0046=0.0923

P ( x=4 )=¿ 12C4( 0.45 ) 4 (0.55)8=495 × 0.0410× 0.0084=0.1699

P ( x=5 )=¿ 12C5( 0.45 )5 (0.55)7=792 × 0.0185× 0.0152=0.2225

P ( x=6 )=¿ 12C6( 0.45 )6 ( 0.55)6 =924 × 0.0083× 0.0277=0.2124

P ( x=7 )=¿ 12C7( 0.45 )7 ( 0.55)5=792 × 0.0037× 0.0503=0.1489

P ( x=8 )=¿ 12C8( 0.45 )8 ( 0.55)4 =495 × 0.0017 ×0.0915=0.0762

P ( x=9 )=¿ 12C9( 0.45 )9 ( 0.55)3=220× 0.0008 ×0.1664=0.0277

P ( x=10 )=¿ 12C10( 0.45 )10 (0.55)2=66 × 0.0003× 0.3025=0.0068

P ( x=11)=¿ 12C11( 0.45 )11 ( 0.55)1 =12× 0.0002× 0.55=0.0010

P ( x=12 )=¿ 12C12( 0.45 )12 (0.55)0=1 ×0.00007=0.0001

x P(x) x P(x)
0 0.0008 7 0.1489
1 0.0075 8 0.0762
2 0.0339 9 0.0277
3 0.0923 10 0.0068
4 0.1699 11 0.0010
5 0.2225 12 0.0001
6 0.2124
Probability distribution of x for n=12 and p=0.45

d) Using the probability distribution obtained in part c, find the following probabilities.
i. 𝑃(𝑥>6)

P ( x>6 )=P ( x=7 ) + P ( x=8 ) + P ( x=9 ) + P ( x=10 ) + P ( x=11 ) + P ( x=12 )

P ( x>6 )=0.1489+ 0.0762+ 0.0277+0.0068+0.0010+0.0001

P ( x>6 )=0.2607

ii. 𝑃(𝑥≤3)

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P ( x ≤ 3 )=P ( x=3 ) + P ( x=2 ) + P ( x=1 )+ P ( x=0 )

P ( x ≤ 3 )=0.0923+ 0.0339+ 0.0075+0.0008

P ( x ≤ 3 )=0.1345

iii. 𝑃(2≤𝑥≤7)

P ( 2≤ x ≤ 7 )=P ( x=2 ) + P ( x=3 ) + P ( x=4 ) + P ( x =5 ) + P ( x=6 ) + P ( x =7 )

P ( 2≤ x ≤ 7 )=0.0339+0.0923+0.1699+0.2225+ 0.2124+0.1489

P ( 2≤ x ≤ 7 )=0.8799

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