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Problem Sheet 2

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Problem Sheet 2

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23pgp172
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© © All Rights Reserved
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Problem Set – 2 (Binomial and Poisson)

From the textbook “Statistics for Business and Economics” by Anderson et al.: Questions
5.34 to 5.43 and 5.46 to 5.51.
1) The probability of a man hitting a target is 1/4.
i. If he fires 7 times, what is the probability of his hitting the target at least twice?
ii. How many times must he fire so that the probability of his hitting the target at least
once is greater than 2/3.

2) The incidence of occupational disease in an industry is such that the workers have 20%
chance of suffering of it. What is the probability that out of 6 workers chosen at random, 4 or
more will suffer from the disease?

3) The length of time (in minutes) that a certain lady speaks on the telephone is found to be
random phenomenon, with probability density function 𝑓(𝑥) = 𝐴𝑒−𝑥/5, 𝑥 > 0
i. Find A.
ii. What is the probability that the number of minutes that she will talk over the phone
is more than 10 minutes; less than 5 minutes; and between 5 and 10 minutes?

4) The probability that a student is accepted to a prestigious college is 0.3. If 5 students from
the same school apply, what is the probability that at most 2 are accepted?

5) An XYZ cell phone is made from 55 components. Each component has a 0.002 probability
of being defective. What is the probability that an XYZ cell phone will not work perfectly?

6) A bank claims that 80% of its customers use a cashpoint at least once a month. If this claim
is true, what is the probability that:

a) In a random sample of 5 customers at least 80% use a cashpoint machine at least


once a month.
b) In a random sample of 10 customers at least 80% use a cashpoint machine at least
once a month.
c) If the random variable X follows a binomial distribution with n=5 and p=0.8, what is
the mean of this distribution and what is P(X ≥ mean)?
d) If the random variable X follows a binomial distribution with n=10 and p=0.8, what
is the mean of this distribution and what is P(X ≥ mean)?
e) When the sample size n is increased, what happens to P(X ≥ mean)? If the sample
size became very large what would you expect P(X ≥ mean) to approach? Briefly
explain your answer.

7) Consider a room in which 730 persons are assembled. For i = 1, 2, ..., 730, let Ai be the
event that ith person was born on January 1. Assume that the events Ai, i = 1, 2, ..., 730, are
independent and that each event has probability 1/365. Find approximately the probability
that (i) exactly 2,
(ii) 2 or more
persons were born on January 1 using (a) Binomial, (b) Normal, and (b) Poisson distribution.

8) A company owns 400 laptops. Each laptop has an 8% probability of not working. You
randomly select 20 laptops for your salespeople.
(a) What is the likelihood that 5 will be broken?
(b) What is the likelihood that they will all work?
(c) What is the likelihood that they will all be broken?

9) A study indicates that 4% of American teenagers have tattoos. You randomly sample 30
teenagers. What is the likelihood that exactly 3 will have a tattoo?

10) The ABC Company manufactures toy robots. About 1 toy robot per 100 does not work.
You purchase 35 ABC toy robots. What is the probability that exactly 4 do not work?

11) The LMB Company manufactures tires. They claim that only .007 of LMB tires are
defective. What is the probability of finding 2 defective tires in a random sample of 50 LMB
tires?

12) An HDTV is made from 100 components. The TV works properly when all the
components work. Each component has a .005 probability of being defective. What is the
probability that an HDTV will not work perfectly?

13) The number of cracks requiring repair in a section of motor way is assumed to follow a
Poisson distribution with a mean of two cracks per mile:
(i) What is the probability that there are no cracks that require repair in 5 miles of motor
way?
(ii) What is the probability that at least one crack requires repair in one-half mile of motor
way?
(iii) What is the probability that there are exactly three cracks that require repair in 2 miles
of motor way?

14) One-hundred-year records of earthquakes in a region show that there were 10


earthquakes of intensity 6 or more. Calculate the following:
(i) the probability that such earthquakes will occur in the next 3 years;
(ii) the probability that no such earthquake will occur in the next 10 years.

15) Suppose that in one year the number of industrial accidents follows a Poisson
distribution with mean 3. What is the probability that in a given year there will be at least 1
accident?

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