Scribd
Upload
8 views

Seminar Problems - Cont Probability Distribution

Uploaded by

oybekjon2701
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
8 views

Seminar Problems - Cont Probability Distribution

Uploaded by

oybekjon2701
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

OSCE Academy in Bishkek

Economics BA Progamme

Seminar problems: Continuous Random Variables

1. Consider the random variable x representing the flight time of an airplane traveling from Chicago to New
York. Suppose the flight time can be any value in the interval from 120 minutes to 140 minutes. Because the
random variable x can assume any value in that interval, x is a continuous rather than a discrete random
variable. Let us assume that sufficient actual flight data are available to conclude that the probability of a
flight time within any 1-minute interval is the same as the probability of a flight time within any other 1-
minute interval contained in the larger interval from 120 to 140 minutes.
What is the probability that the flight time is between 120 and 130 minutes?
What is the probability that the flight time is between 120 and 125 minutes?

2. A dealer sells a car to an unsuspecting buyer, even though the dealer knows that the car will have a major
breakdown within the next 6 months. The dealer provides a warranty of 45 days on all cars sold. Let x
represent the length of time until the breakdown occurs. Assume that x is a uniform random variable with
values between 0 and 6 months.

a) Calculate the mean and the standard deviation of x. Graph the probability distribution of x.

b) Calculate the probability that the breakdown occurs while the car is still under warranty.

3. Delta Air Lines quotes a flight time of 2 hours, 5 minutes for its flights from Cincinnati to New York.
Suppose we believe that actual flight times are uniformly distributed between 2 hours and 2 hours, 20
minutes.
a. Show the graph of 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?
d. What is the expected flight time?

4a. Find the probability that the standard normal random variable z fall between -1.33 and 1.33.

4b. Find the probability that the standard normal random variable exceeds 1.64.

4c. Find the probability that the standard normal random variable lies to the right of a point -.74 standard
deviation from its mean.

5. Find the probability that the standard normal random variable lies more than 1.96 standard deviations
from its mean in either direction.

6. Assume that the length of charge time, x, is normally distributed with a


mean of 100 hours and standard deviation of 15 hours. Find the
probability that calculator charges will last between 80 and 120 hours.
7. Suppose an automobile manufacturer introduces a new model that has an advertised mean in-city mileage
of 27 miles per gallon. Although such advertisements seldom report any measure of variability, suppose you
write the manufacturer for the details of the tests, and you find that standard deviation is 3 miles per gallon.
The probability distribution is of x can be approximated by a normal distribution with a mean 27 and a
standard deviation of 3. Find P(x<20)?

8. Find the value z0 such that 95% of the standard normal z values lie between - z0 and + z0 that is, P(-z0≤z≤
z0) = .95

10. Suppose the scores, on a national examination in 2013 are normally distributed with the mean of 110
and standard deviation of 33. The prestigious universities will consider for admission only those applicants
whose scores exceed the 90th percentile of the distribution. Find the minimum score an applicant must
achieve in order to receive consideration for admission to the university.

11. For borrowers with good credit scores, the mean debt for revolving and installment
accounts is $15,015 (BusinessWeek, March 20, 2006). Assume the standard deviation is
$3540 and that debt amounts are normally distributed.
a. What is the probability that the debt for a borrower with good credit is more than
$18,000?
b. What is the probability that the debt for a borrower with good credit is less than
$10,000?
c. What is the probability that the debt for a borrower with good credit is between $12,000
and $18,000?
d. What is the probability that the debt for a borrower with good credit is no more than
$14,000?

12. The average stock price for companies making up the S&P 500 is $30, and the standard deviation
is $8.20 (BusinessWeek, Special Annual Issue, Spring 2003). Assume the stock
prices are normally distributed.
a. What is the probability that a company will have a stock price of at least $40?
b. What is the probability that a company will have a stock price no higher than $20?
c. How high does a stock price have to be to put a company in the top 10%?

13. In an article about the cost of health care, Money magazine reported that a visit to a hospital
emergency room for something as simple as a sore throat has a mean cost of $328. Assume that the cost for
this type of hospital emergency room visit
is normally distributed with a standard deviation of $92. 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 $500?
b. What is the probability that the cost will be less than $250?
c. What is the probability that the cost will be between $300 and $400?
d. If the cost to a patient is in the lower 8% of charges for this medical service, what was
the cost of this patient’s emergency room visit?

14. In January 2003, the American worker spent an average of 77 hours logged on to the Internet
while at work. Assume the population mean is 77 hours, the times are normally distributed, and that the
standard deviation is 20 hours.
a. What is the probability that in January 2003 a randomly selected worker spent fewer
than 50 hours logged on to the Internet?
b. What percentage of workers spent more than 100 hours in January 2003 logged on to
the Internet?
c. A person is classified as a heavy user if he or she is in the upper 20% of usage. In
January 2003, how many hours did a worker have to be logged on to the Internet to
be considered a heavy user?

You might also like