Scribd
Upload
11 views

Week 1 - Continuous Distributions Problems

Uploaded by

Weiru Hou
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
11 views

Week 1 - Continuous Distributions Problems

Uploaded by

Weiru Hou
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 3

Week 1.

Continuous Distributions Problems


Problem 1.
The random variable x is known to be uniformly distributed between 1.0 and 1.5.
a. Use Minitab to graph the probability density function.

b. Compute P(x = 1.25).

c. Compute P(1.0 ≤ x ≤ 1.25).

d. Compute P(1.20 ≤ x ≤ 1.5).

Problem 2.

Delta Air Lines quotes a flight time of 2 hours, 5 minutes for its flights from Cincinnati to Tampa.
Suppose we believe that actual flight times are uniformly distributed between 2 hours and 2
hours, 20 minutes.

a. Use Minitab to graph the probability density function for flight time.

b. What is the probability that the flight will be no more than 5 minutes late?

c. What is the probability that the flight will be more than 10 minutes late?

Problem 3.
Use Minitab to draw a graph for the standard normal distribution. Then use the minitab, excel
or the table of probabilities for the standard normal distribution inside the front cover of the
text to compute the following probabilities.
a. P(z ≤ 1.5)

b. P(z ≤ 1)

c. P(1 ≤ z _≤1.5)

d. P(0 ≤ z ≤2.5)
Problem 4.

Given that z is a standard normal random variable, use the minitab, excel or the table of
probabilities for the standard normal distribution inside the front cover to find z for each
situation.

a. The area to the left of z is .9750. d. The area to the right of z is .1314.

b. The area between 0 and z is .4750. e. The area to the left of z is .6700.

c. The area to the left of z is .7291. f. The area to the right of z is .3300

Problem 5
The average return for large-cap domestic stock funds over the three years 2015-2018 was
10.7% Assume the three-year returns were normally distributed across funds with a standard
deviation of 4.4%.
a. What is the probability an individual large-cap domestic stock fund had a three-year
return of at least 15%?

b. What is the probability an individual large-cap domestic stock fund had a three-year
return of 8% or less?

c. How big does a return have to be to put a domestic stock fund in the top 10% for the
three-year period?
Problem 6
Consumer Health Ratings website reported that a Florida state average ER visit cost in 2016 was
$5518. Assume that the cost for this type of hospital emergency room visit is normally
distributed with a standard deviation of $982. Answer the following questions about the cost of
a hospital emergency room visit for this medical service.

a. What is the probability that the cost will be more than $6500?

b. What is the probability that the cost will be less than $4000?

c. What is the probability that the cost will be between $4000 and $5000?

d. If the cost to a patient is in the lower 8% of charges for this medical service, what was
the cost of a patient’s emergency room visit?
Problem 7
In June 2018 the American Automobile Association (AAA) predicted that a record number of
Americans would travel more than 50 miles during the Independence Day Holiday and spend an
average of $749 . Assume that the amount spent is normally distributed with a standard
deviation of $225.
a. What is the probability that the travel expense was less than $400?

b. What is the probability that the travel expense was $800 or more?

c. What is the probability that the travel expense for the weekend was between $500 and
$1000?

d. What were the Independence Day travel expenses for the 5% of the individuals with the
most expensive travel plans?

e. If 2.22 million Americans spent more than $1125 traveling over the Independence Day
in 2018, how many individuals traveled that year (round off to the nearest tenth)?

You might also like