Chapter 6
Chapter 6
six.
a ) Prepare the probability distribution for the number of possible outcomes.
b ) Graphically represent the probability distribution.
c ) What is the sum of the probabilities?
× Pizza Palace offers three sizes of cola—small, medium, and large—to accompany your pizza. Soft drinks cost $0.80,
$0.90 and $1.20, respectively. Thirty percent of the orders correspond to the small size; 50%, to the medium, and 20%,
to the large. Arrange the size of the soft drinks and the probability of sale into a probability distribution.
a ) Is it a discrete probability distribution? Please indicate why.
b ) Calculate the average amount charged per cola drink.
c ) What is the variance of the amount charged for a cola drink? What is the standard deviation?
a ) Discrete, since the values $0.80, $0.90 and $1.20 are
are clearly separated from each other. In addition,
The sum of the probabilities is 1.00 and the results
They are mutually exclusive.
The average is 93 cents.
The variance is 0.02010, and the standard deviation,
of 14 cents.
× Eight percent of employees at the General Mills plant on Laskey Road receive their bimonthly pay via electronic fund
transfers. This mechanism is also called direct deposit . Suppose you select a random sample of seven employees.
It is reasonable, because a direct deposit is made to each employee or it is not made; employees are
independent; The probability of direct deposits being made is 0.80 for everyone, counting 7 employees
who benefit from the service.
b ) P (7) = 7 C 7 (.80) 7 (.20) 0 _ .2097
c ) P (4) = 7 C 4 (.80) 4 (.20) 3 _ .1147
d ) The answers agree.
Exercises
1. Calculate the mean and variance of the following discrete probability distribution.
5. The information below represents the number of daily emergency service calls by the Walterboro, South Carolina
Volunteer Ambulance Service for the past 50 days.
In other words, there were 22 days in which 2 emergency calls were made, and 9 days in which 3 emergency calls were
made.
a ) Convert this information about the number of calls into a probability distribution.
b ) Is it an example of a discrete or continuous probability distribution?
c ) What is the average number of emergency calls per day?
d ) What is the standard deviation of the number of daily calls?
b ) Discrete distribution, since only certain results are possible.
U=1.7
Q=1.005
7. Belk Department Store is having a special sale this weekend. Customers who report charges for purchases of more than
$50 on their Belk credit card will receive a special lottery card from the company. The customer will scratch the card, which
indicates the amount that will be deducted from the total purchases. Below are the sum of the prize and the percentage of
time that will be deducted from the total purchases.
21
259-->16.093
9. In a binomial situation, n = 4 and pi = 0.25. Determine the probabilities of the following events using the binomial
formula.
a)x=2 0.2109
b)x=3 0.0469
1.8 0.8485
13. A study by the American Society of Investors found that 30% of individual investors had used a discount broker. In a
random sample of nine people, what is the probability that:
a ) exactly two people have used a discount agent?
b ) exactly four people have resorted to it?
c ) no person has used it?
0.2665
0.1715
0.0404
15. Industry standards suggest that 10% of new vehicles require warranty service within the first year. Yesterday, Jones
Nissan of Sumter, South Carolina, sold 12 Nissan brand cars.
a ) What is the probability that none of these vehicles require warranty service?
b ) What is the probability that exactly one of these vehicles requires
warranty service? c ) Determine the probability that
exactly two of these vehicles require warranty service.
d ) Calculate the mean and standard deviation of this
probability distribution.
0.2824
0.3765
0.2301
U=1.2 Q=1.0392
17. A recent American Accounting Association survey revealed that 23% of accounting graduates choose public accounting.
Suppose you choose a sample of 15 recent graduates.
a ) What is the probability that two have chosen public accounting?
b ) What is the probability that five have chosen public accounting?
c ) How many graduates would you expect to choose public accounting?
0.1858
0.1416
3.45
19. In a binomial distribution, n = 8 and pi = 0.30. Determine the probabilities of the following events.
a ) x = 2. 0.296
b ) x=< 2 ( x is equal to or less). 0.552
c ) x => 3 ( x is equal to or greater than 3). 0.448
21. A recent study found that 90% of American families have large screen televisions. In a sample of nine families, what is
the probability that:
a ) all nine have large screen televisions? 0.387
b ) less than five have large screen televisions? 0.001
c ) more than five have large screen televisions? 0.992
d ) at least seven families have large screen televisions? 0.947
23. The speed with which service companies resolve problems is of utmost importance.
Georgetown Telephone Company claims it is able to resolve 70% of customer problems the same day they are reported.
Assume that the 15 cases reported today are representative of all complaints.
a ) How many problems would you expect to be solved today? What is the standard deviation?
b ) What is the probability that 10 problems will be solved today?
c ) What is the probability that 10 or 11 problems will be solved today?
d ) What is the probability that more than 10 problems will be solved today?
U=10.5 Q=1.7745
0.2061
0.4247
0.5154
× Horwege Discount Brokers plans to hire 5 financial analysts this year. There is a pool of 12 approved candidates, and
George Horwege, the owner, decides to randomly choose who he is going to hire. Of the approved applicants, 8 are
men and 4 women. What is the probability that 3 of the 5 hired are men?
P (3) = .424.
25. A population consists of 10 elements, 6 of which are defective. In a sample of 3 items, what is the probability that
exactly 2 are defective? Assume that samples are taken without replacement.
0.5
27. Kolzak Appliance Outlet just received a shipment of 10 DVD players. Shortly after receiving it, the manufacturer
contacted to report a shipment of three defective units.
Miss Kolzac, the owner of the store, decided to test 2 of the 10 DVD players she received. What is the probability that
neither of the 2 DVD players tested are defective? Assume that the samples have no replacement.
0.4667
29. Keith's Florists has 15 delivery trucks, which they primarily use to deliver flowers and floral arrangements to the
Greenville, South Carolina area. Of these 15 trucks, 6 have problems with the brakes. A sample of 5 trucks was randomly
selected. What is the probability that 2 of the trucks tested have defective brakes?
0.4196
× From actuarial tables, Washington Insurance Company determined that the probability that a 25-year-old man will
die within the next year is 0.0002. If Washington Insurance sells 4,000 policies to 25-year-old men this year, what is
the probability that they will pay for exactly one policy?
U= 4 000(.0002) = 0.8 p(1)=0.3595
33. Ms. Bergen is an executive at Coast Bank and Trust. From his years of experience, he calculates that the probability that
an applicant will default on an initial loan is 0.025. Last month he made 40 loans.
a ) What is the probability that 3 loans are not paid?0.0613
b ) What is the probability that at least 3 loans are not paid? 0.0803
35. It is estimated that 0.5% of those who call Dell, Inc.'s customer service department will hear a busy tone. What is the
probability that of the 1,200 people who called today, at least 5 heard a busy tone? | 0.7149
37. What is the difference between a random variable and a probability distribution?
A random variable is a quantitative or qualitative result that is derived from a randomized experiment. A
probability distribution also includes the possibility of each possible outcome.
39. An investment will produce $1,000, $2,000, and $5,000 at the end of the year. The probabilities of these values are 0.25,
0.60 and 0.15, respectively. Determine the mean and variance of the investment value. U=2200 Q=1560000
41. Croissant Bakery, Inc., offers specially decorated cakes for birthdays, weddings, and other occasions. The bakery also
has normal cakes. The following table includes the total number of cakes sold per day, as well as the corresponding
probability. Calculate the mean, variance, and standard deviation of the number of cakes sold per day.
Number of cakes
sold in one day Probability
12 .25
13 .40
14 .25
15 .10
U=13.2 0.86-->Q=0.927
43. In a recent survey, 35% indicated that chocolate was their favorite flavor of ice cream. Suppose we select a sample of ten
people and ask them what their favorite flavor of ice cream is.
a ) How many people in the sample would you expect to mention chocolate?
b ) What is the probability that exactly four people included in the sample mention chocolate?
c ) What is the probability that four or more mention chocolate?
U=3.5
0.2375
0.4862
45. An auditor for Health Maintenance Services of Georgia reports that 40% of policyholders age 55 and older use the
policy during the year. 15 policyholders are randomly selected from the company's records.
a ) How many policyholders do you think used the policy last year? 6
b ) What is the probability that ten of the selected policyholders used the policy last year? 0.0245
c ) What is the probability that 10 or more of the selected policyholders used the policy last year? 0.0338
d ) What is the probability that more than 10 of the selected policyholders used the policy last year? 0.0093
47. A federal study reported that 7.5% of the United States workforce has drug problems. An Indiana state drug enforcement
officer decided to investigate this claim. In a sample of 20 workers:
a ) How many do you think have drug addiction problems? What is the standard deviation?
b ) What is the probability that none of the workers in the sample manifest addiction problems?
c ) What is the probability that at least one of the workers in the sample has addiction problems?
U=1.5 Q=1.1779
0.2103
0.7897
49. Recent statistics suggest that 15% of those who visit a Web retail site make a purchase. A retailer wants to verify this
claim. To do this, he selected a sample of 16 “visits” to his site and found that 4 made a purchase.
a ) What is the probability that exactly four make a purchase? 0.1311
b ) How many purchases should be expected? 2.4
c ) What is the probability that four or more “visits” end in a purchase? 0.2100
51. Colgate-Palmolive, Inc., recently created a new honey-flavored toothpaste. This was tested by a group of ten people. Six
of them said they liked the new flavor and the remaining four indicated that they definitely didn't like it. Four of the ten are
selected to participate in an in-depth interview. Among those chosen for the interview, what is the probability that two liked
the new flavor, and two did not?
0.4286
53. A recent study conducted by Penn, Shone, and Borland for LastMinute.com revealed that 52% of business travelers plan
their trips less than two weeks before departure. The study will be repeated in an area spanning three states with a sample of
12 frequent business travelers.
a ) Prepare a probability distribution of the number of travelers planning their trips two weeks before departure.
b ) Determine the mean and standard deviation of this distribution.
c ) What is the probability that exactly 5 of the 12 travel agents plan their trips two weeks before leaving?
d ) What is the probability that 5 or more of the 12 selected travel agents plan their trips two weeks before leaving?
U= 6.24 Q=1.7307
0.1768
0.3343
55. The Hagel and Hagel law firm is located in downtown Cincinnati. The company has
10 partners; 7 live in Ohio and 3 in Northern Kentucky. Mrs. Wendy Hagel, the manager, would like to appoint a committee
of 3 partners to study the possibility of moving the office to the north of
Kentucky. If the committee is selected at random from the 10 members, what is the probability that:
a ) one member of the committee lives in northern Kentucky and the others in Ohio?
b ) at least 1 committee member lives in Northern Kentucky?
0.5250
0.2917
0.7083
57. The position of police chief in the city of Corry, Pennsylvania, is vacant. A search committee, made up of residents of
that town, has the responsibility of recommending the new police chief to the city mayor. There are 12 candidates, 4 of
whom are women or members of a minority. The committee decides to interview the 12 candidates. They first randomly
selected four candidates to interview on the first day, none of whom turned out to be women or a member of a minority. The
local newspaper, Corry Press, in one of its editorial columns, suggests that there is discrimination. What is the probability
that this is the case? 0.141
59. Sales of Lexus automobiles in the Detroit area follow a Poisson distribution with a mean of 3 per day.
a ) What is the probability that no Lexus will be sold on a given day? 0.0498
b ) What is the probability that at least one Lexus is sold on 5 consecutive days? 0.7749
61. A study of checkout lines at Safeway Supermarket in the South Strand area revealed that between 4 and 7 pm on
weekends there are an average of four customers in the waiting line. What is the probability that when you visit Safeway
during this time you will find the following:
a ) no customers in line? 0.0183
b ) four customers in the waiting line? 0.1954
c ) four or fewer customers in line? 0.6289
d ) four or more customers waiting? 0.5665
63. Recent crime-related reports indicate that 3.1 motor vehicle thefts occur every minute in the United States. Suppose that
the distribution of thefts per minute can be approximated by a Poisson probability distribution.
a ) Calculate the probability that exactly four robberies occur in one minute. 0.1733
b ) What is the probability that there will be no robberies in one minute? 0.0450
c ) What is the probability that there will be at least one robbery in one minute? 0.9550
65. The National Aeronautics and Space Administration (NASA) has suffered two disasters. Challenger exploded in the
Atlantic Ocean in 1986 and Columbia exploded east of Texas in 2003. There have been a total of 113 space missions.
Assume that errors continue to occur for the same reason and consider the following 23 missions. What is the probability
that exactly two failures occur? What is the probability that no failures will occur?
u=0.407
0.0551
0.6656
67. During the second round of the 1989 US Open golf tournament, four players recorded a hole-in-one while playing the
sixth hole. The odds of a professional golf player recording a hole-in-one are estimated to be 3,708 to 1; Therefore, the
probability is
1/3 709. That day 155 golfers participated in the second round. Find the probability that four golfers will record a hole-in-
one while playing the sixth hole.
U=0.042
0.000000001 very unlikely
69. A recent CBS News study reported that 67% of adults believe that the Department of
US Treasury must continue minting one cent coins.
Suppose a sample of 15 adults is selected.
a ) How many of the 15 adults would indicate that the Treasury Department should continue minting pennies? What is the
standard deviation?
b ) What is the probability that exactly 8 adults indicate that the Treasury Department should continue minting pennies?
c ) What is the probability that at least 8 adults indicate that the Department of
Should Treasury continue minting pennies?
U=10.05 Q=1.8211
0.1114
0.9163
38. In each of the following statements, indicate whether the random variable is discrete or continuous.
d) The number of patients treated at South Strand Medical Center between six and ten at night, each night.
DISCREET
e) The distance you traveled in your car with the last tank of gasoline. Keep going
f) The number of Oak Street Wendy's customers who used the facilities.
g) The distance between Gainesville, Florida, and all Florida cities with a population of at least 50,000.
40. The personnel manager of Cumberland Pig Iron Company studies the number of workplace accidents in a month
and developed the following probability distribution. Calculate the mean, variance, and standard deviation of the
number of accidents in a month.
48. Bank of Hawaii reports that 7% of its credit card customers will stop paying at some point. The Hilo branch sent
out 12 new cards today. a) How many of the new cardholders do you think will stop paying? What is the standard
deviation? b) What is the probability that none of the cardholders stop paying? c) What is the probability that at
least one stops paying?
50. Chapter 19 studies the acceptance sample. Acceptance sampling is used to monitor the
quality of incoming raw materials. Suppose a buyer of electronic components allows
1% of the components to be defective. To ensure the quality of incoming parts,
usually 20 parts are taken as a sample and one defective part is allowed. a) What is
the probability of accepting a lot with 1% defective parts? b) If the quality of the
incoming batch was actually 2%, what is the probability that it will be accepted? c) If
the quality of the incoming batch was actually 5%, what is the probability that it will
be accepted?
58. The following list shows the population by state of the 15 with the largest population. Also included is information
that a state boundary is on the Gulf of Mexico, the Atlantic Ocean, or the Pacific Ocean (coastline).
60. Suppose that 1.5% of the antennas on new Nokia cell phones have defects. In a random sample of 200 antennas,
calculate the following probabilities: a) None of the antennas are defective. b) Three or more antennas are
defective.
62. An internal study conducted by Lahey Electronics' Technology Services department revealed that the company's
employees receive an average of two emails per hour. Assume that the reception of these emails obeys
approximately a Poisson distribution. a) What is the probability that Linda Lahey, president of the
company, received exactly 1 email between 4 and 5 pm yesterday? b) What is the probability that you have
received 5 or more emails during that time? c) What is the probability that you have not received emails at
that time?
64. New Process, Inc., a large mail-order supplier of women's clothing, advertises its same-day order deliveries.
Recently, the flow of orders has not corresponded to plans and many complaints have been made. Bud
Owens, director of customer service, completely redesigned the order handling system. The goal is to have
fewer than five undelivered orders at the end of 95% of business days. Frequent reviews of undelivered
orders at the end of the day reveal that the distribution of undelivered orders is governed by a Poisson
distribution with a mean of two orders. a) Did New Process, Inc. achieve its objectives? Present evidence. b)
Draw a histogram representing the Poisson probability distribution of undelivered orders.
66. According to the “January theory,” if the stock market rises during that month, it will continue to do so for the
rest of the year. If it doesn't go up, it won't for the rest of the year. According to an article in The Wall
Street Journal, this theory has remained valid 29 of the last 34 years. Suppose the theory is false; That is,
the probability that it will rise or fall is 0.50. What is the probability that this happens by chance? (You
may require a software package, such as Excel or Minitab.)
68. Suppose that the National Hurricane Center predicts that hurricanes will hit the affected area with a 0.95
probability. Answer the following questions. a) What probability distribution is this case? b) What is the
probability that 10 hurricanes will make landfall in the affected area? c) What is the probability that at
least 10 hurricanes make landfall outside the affected area?