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1.

During a socio-economic survey conducted in a rural area, the concerned authorities came to the
conclusion that mean level of income in the area was Rs 150 per month with a standard deviation of
Rs 20 and that income is approximately normally distributed. The total population of the area was
4000. Compute the number of people who fell into the following categories:

I. monthly income less than Rs 125


II. monthly income greater than Rs 100 but less than or equal to Rs 150.
III. monthly income greater than Rs 200.

2. The demand of a product is observed to vary from one quarter to the other. The demand of each
quarter can be assumed to follow a normal distribution with means and standard deviations given
below:

Quarter Mean Standard Deviation

1 300 10

2 250 10

3 400 13

4 450 15

What is the probability that the annual demand will be more than 1450 units? Demands in the four
quarters are independent.

3. Suppose taxicab arrivals from 3 to 5 p.m. follow a Poisson process. If the cabs arrive at an average
rate of 18 per hour,

(a) what is the probability that a person will have to wait up to 5 minutes for cab?

(b) What is the probability that a person will have to wait between 5 and 10 minutes for cab?

4. A graduating student keeps applying for jobs until she gets an offer. The probability of getting an
offer at any attempt is 0.35

a) What is the expected no of applications?

b) If she has enough time to complete at most 4 applications, how confident can she be of
getting an offer within the available time?

c) If she wants to be at least 95%confident of getting an offer, how many applications should
she prepare

5. A financial analyst is interested to calculate the correlation coefficient (r) between the return of
two stocks ‘A’ and ‘B’. She has however limited information given below on the difference of
returns(in hundreds of rupee) for the two stocks for last ten quarters.

15 13 14 11 12 19 17 20 25 22

She has enough reasons to believe that S.D. of returns of both the stocks are equal to RS. 6 . With
this available limited information, how can she, if possible, work out the value of ‘r’.

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