100 but less than or equal to Rs 150. (iii) monthly income greater than Rs 250. 2. The demand of a product is approximately normally distributed with an average demand of 300 units per month. The probability of demand being less than 280 units is 0.025. What is the probability that demand is more than 315 units? 3. Approximately 30% of the time demand of a product is more than 250 units‚ and 20% of the time demand is less than 200 units. What is the average demand?
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made to high-risk borrowers. What is the probability that a high-risk borrower will default? 2. A fund manager is considering investing in the stock of a healthcare provider. The manager’s assessment of probabilities of the rates of return on this stock over the next year is summarized in the table below. |Rate of return |Less than -10% |-10% to 0% |0% to 10% |10% to 20% |More than 20% | |Probability |0.04
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measured in each. Assuming that the tobacco company’s claim is true‚ what is the probability that the mean tar content of the sample is greater than 4.15 milligrams? [0.00621] 2. The safety limit of a crane is known to be 32 tons. The mean weight and the standard deviation of a large number of iron rods are 0.3 ton and 0.2 ton respectively. One hundred rods are lifted at a time. Compute the probability of an accident. [0.1587] 3. A soft –drink vending machine is
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the z-score for which the area under the standard normal curve to its left is 0.04 9) Determine the two z-scores that divide the area under the standard normal curve into a middle 0.874 area and two outside 0.063 areas. Find the indicated probability or percentage for the normally distributed variable. 10) The variable X is normally distributed. The mean is μ = 15.2 and the standard deviation is σ = 0.9.
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Name: Tung Son Nguyen ID: 1418366 (Bold letters below are my answers) FIN 3331 – Risk & Return Assignment 1. You are given the following probability distribution of returns for stock J: A probability of .2 that the return will be 12%; a probability of .35 that the return will be 18%; a probability of .3 that the return will be -10%; and a probability of .15 that the return will be 10%. What is the expected return of this stock? What is the standard deviation rounded to the nearest whole number
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20-25 25-30 30-35 35-40 Frequency 2 5 7 13 21 16 8 3 A salesman has a 60% chance of making a sale to any one customer. The behaviour of successive customers is independent. If two customers A and B enter‚ what is the probability that the salesman will make a sale to A or B. To verify whether a course in Research Methodology improved performance‚ a similar test was given to 12 participants before and after the course. The original marks and after the course marks are
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Chapter 1: Permutations 1. In how many ways can three different awards be distributed among 20 students in the following situations? a. No student may receive more than one award. b. There is no limit on the number of awards won by one student. Answer: a) 6840 b)8000 2. Consider the word BASKETBALL: a. How many permutations are there? b. How many permutations begin with the letter K? c. How many permutations
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model is compared to the probability model because the stochastic models and probability uses the same range of values‚ in every variables in each form of distributions. Probability Model is a stochastic model that shares a similar mathematical formulation with deterministic model that incorporates the same element of randomness‚ via contrasts and comparisons relying on predictions based on observation regarding each variable. Gaussian is the simplest probability model that operates and
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BMA 140 WINTER 2011 PRACTICE (Midterm) 1. Monthly rent data in dollars for a sample of 10 one-bedroom apartments in a small town in Iowa are given below: 220 216 220 205 210 240 195 235 204 250 a. Compute the sample monthly average rent b. Compute the sample median c. What is the mode? d. Describe briefly what each statistic in parts a. to c. tells you about the data. 2. Suppose that a firm’s sales were $2‚500‚000 four years ago
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Econ 201 Homework 3 Emily Wiemers All questions are worth 11 points—you all get one point for free. 1. The only DVD club available to you charges $4 per movie per day. If your demand curve for movie rentals is given by P=20-2Q‚ where P is the rental price ($/day) and Q is the quantity demanded (movies per year)‚ what is the maximum annual membership fee you would be willing to pay to join this club? 2. Smith lives in a world with two time periods. His income in each period‚ is $210
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