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Properties of Probabiities

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Sir-luh Dladla
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16 views2 pages

Properties of Probabiities

Uploaded by

Sir-luh Dladla
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Student No:

BUQS 2009: INTRODUCTORY ECONOMETRICS FOR PROPERTY STUDIES


Due Wednesday, April 20, 2022

Solve the following problems by hand. Show ALL your workings.

Question 1
a) Identify and define different types of compound events (3 marks).
b) CMC Apartments advertised 1,706 available units for students. These units are in the
West, South, and Center City apartment complexes, and they have one, two, and three
bedrooms. The following contingency table summarizes the available units:

West South City center Total


One bedroom 97 277 175 549
Two- 156 315 261 732
bedrooms
Three 99 229 97 425
bedrooms
Total 352 821 533 1,706

An apartment advertised by CMC Apartment is selected at random. What is the


probability it is:
i. In the Center City? (2 marks)
ii. A three-bedroom unit? (2 marks)
iii. In Center City and is a three-bedroom unit? (2 marks)
iv. In Center City or is a three-bedroom unit? (2 marks)
v. In Center City, given that it is a three-bedroom unit? (2 marks)
vi. A three-bedroom unit, given that it is in Center City? (2 marks)
vii. Are the events of being in Center City and being a three-bedroom unit mutually
exclusive? Why or why not? (3 marks)
viii. Are the events of being on Center City and being a three-bedroom unit
independent? Why or why not? (3 marks)

Question 2
a) With the help of a Venn diagram, show two mutually exclusive events A and B.
b) Given that two events, A and B, have their respective probabilities has P(A) = 2/8 and
P(B) = 4/8, and that their joint probability is 1/8, what would the P(A or B) assuming
they are
i. Mutually exclusive? (2 marks)
ii. Non-mutually exclusive? (2 marks)
c) As a statutory requirement, SARS audits businesses every tax year randomly. Suppose
that the probability of being audited is one in a thousand, what would be the probability
that a business owner (who files his/her taxes every year as required) is not audited? In

1
probability theory, what do you call the later scenario? What would be the relevant
sample space? (3 marks)

Question 3
The table below shows the results of a sample of 300 residents of a given neighborhood
randomly interviewed as to whether they were either felons or non-felons. Use the
information to answer the questions below.

Females Males Total


Felon 51 114 165
Non-felon 69 66 135
Total 120 180 300

If a resident was chosen to be interviewed, what is the probability the resident is (use the
tree diagram to answer your questions) (2 marks each):
i. A female?
ii. A male?
iii. A felon?
iv. A female or a felon?
v. A male and a felon?
vi. If the first resident interviewed in fact turned out to be a male, what is the chance
that he is a felon? A non-felon?

Question 4
The SA Department of Education in its annual report stated that the tardiness rates (in
days) of children differ between the inner city and the suburbs neighborhoods’ schools.
Unconvinced with this assertion, you proceed to take random samples of 25 and 20
children in these neighborhoods, respectively. Your findings yielded the following. In the
inner city neighborhood the mean and standard error of tardiness were 4 years and 1.8
years. For the suburbs, the tardiness mean rate is 5.2 years while its standard error is 1.2
years.
• Which test would you use? (1 mark)
• Is it a 1-tail or 2-tail test? (1 mark)
• At α = 0.05 is there any significance difference between the variances of the two
population? (7 marks).
• At α = 0.05 is there any significance difference between the means of the two
population? Suppose α = 0.01, would your answer change? (5 marks).

=END=

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