1 What are the types of random variables?

There are two types of random variables−discrete and continuous. Random variables that can
assume only a countable number of values are called discrete. Random variables that can take on
any of the countless number of values in an interval are called continuous.
Example: The following are examples of discrete random variables:
• • The number of cars sold by a car dealer in one month

• • The number of students who were protesting the tuition increase last semester

• • The number of applicants who have applied for a vacant position at a company

• • The number of typographical errors in a rough draft of a book

For each of these, if the variable is X, then x=0,1,2,3,…. Note that X can become very large. (In
statistics, when we are talking about the random variable itself, we write the variable in
uppercase, and when we are talking about the values of the random variable, we write the
variable in lowercase.)
Example: The following are examples of continuous random variables.
• • The length of time it takes a truck driver to go from New York City to Miami

• • The depth of drilling to find oil

• • The weight of a truck in a truck-weighing station

• • The amount of water in a 12-ounce bottle

For each of these, if the variable is X, then x>0 and less than some maximum value possible, but
it can take on a
2 What is Poisson distribution? State situations where Poisson distribution can be applied.
The Poisson distribution is popular for modelling the number of times an event occurs in an
interval of time or space.
The Poisson distribution may be useful to model events such as:
▪ The number of meteorites greater than 1 meter diameter that strike Earth in a year
▪ The number of patients arriving in an emergency room between 10 and 11 pm
▪

The Poisson distribution is an appropriate model if the following assumptions are true:
▪ k is the number of times an event occurs in an interval and k can take values 0, 1, 2, ….
▪ The occurrence of one event does not affect the probability that a second event will occur.
That is, events occur independently.
▪ The rate at which events occur is constant. The rate cannot be higher in some intervals and
lower in other intervals.
▪ Two events cannot occur at exactly the same instant; instead, at each very small sub-interval
exactly one event either occurs or does not occur.
If these conditions are true, then k is a Poisson random variable, and the distribution of k is a
Poisson distribution. ny value

Define random variable with an example ?

Definition. A random variable (r.v.) is a rule that assigns a numerical value to each possible
outcome of a random experiment.
The discrete rv arises in situations when the population (or possible outcomes) are discrete (or
qualitative).
Example. Toss a coin 3 times, then
S = {HHH,HHT,HTH,HTT,THH,THT,TTH,TTT}
Let the variable of interest, X, be the number of heads observed then relevant events would be
{X = 0} = {TTT}
{X = 1} = {HTT,THT,TTH}
{X = 2} = {HHT,HTH,THH}
{X = 3} = {HHH}.
The relevant question is to find the probability of each these events.
Note that X takes integer values even though the sample space consists of H’s and T’s.
The variable X transforms the problem of calculating probabilities from that of set theory to
calculus. within this range

4 What are the uses of probability in decision making?

 Investment problem: a company manager has two different projects for investment. The
decision taken by the managers is based on the choice that the out come of which is
dependent on level of demand
 Introducing a new product: while introducing a new product there arises a problem in
decline about the introduction of the product. The decision maker is not sure whether the
product would be acceptable or not. Hence after conducting test marketing in three
different regions the results being contradictory the idea of introducing should be
dropped, thus it is necessary to answer this question what would be the chance of success
of introducing a new product
 Stocking decision: the demand of a perishable commodity is unknown to its dealer in
advance. Thus if the commodity is not sold by the end of the day it will be spoiled
therefore he is not sure about the demand pattern and stock amount
 The individual investors: maximization of returns is the motives of investors who are
engaged in buying and selling of equities. The behavior of equities? Securities prices is
uncertain and it depends upon various factors. In this situation manager take decision on
the basis of their prediction about future prices of the securities. This prediction helps the
investors to take a decision as to which securities should select for the investment.

5 What is Cumulative Distribution Function

The PMF is one way to describe the distribution of a discrete random variable. As we will see
later on, PMF cannot be defined for continuous random variables. The cumulative distribution
function (CDF) of a random variable is another method to describe the distribution of random
variables. The advantage of the CDF is that it can be defined for any kind of random variable
(discrete, continuous, and mixed).

Definition

The cumulative distribution function (CDF) of random variable X

is defined as

FX(x)=P(X≤x), for all x∈ℝ.

6 what are the applications of probabity?

1 its plays a great role in making predictions

2 it used to solve scientific investigation as well as day to day problems

3 it is very use full when one wants to predict the uncertain of betting and chance of success

4 it is extensively used in business and economies

5 it is basis of law of statistic regularity and law of inertia of large numbers

7 what is sample space?

A sample space is a collection of all possible out comes of random experiment. Mathematically
the sample space denoted by the symbol .S

EX HH,TT,TH

8 DEFINE PROBABILIT?

according to Laplace “probability is the ratio of the number of favorable cases to that total
number of equal likely cases”

9 what is passion distribution

Posssion distribution can be used as an alternatives to binomial distribution in the case of vary
large samples

In binomial distribution the value

Of n is finite. But there are few problems when it is not possible to estimate n.in this case
binomial distribution ins applicable because cannot expand{p+q}if n is not know.

Example the number of accidents per year in Karnataka

10 what is discrete random variable?

A discrete random variable is a variable whose possible values either create a finite set can be
listed in a infinite sequence. A discrete random variable is one set of assumed values is countable

Example:0,1,2,3,4……….

11. Define probability and also state rules of probability.

12. What is Poisson distribution? What is the formula to calculate probability?

13. State baye’s theorem

14.What is binomial distribution? Write the formula to calculate probability?

15. Illustrate merge and burst event in network analysis?

16. Define random variable with example?

17. Write Poisson's formula with mean and variance.

i) Under certainty ii) under uncertainty

18. Explain Bayer's Theorem

19. What do you mean by random variables? Write the broad classes of random variables.

20. What is redundant constraints? Explain with the neat sketch

21. What is binominal distribution? Write the formula to calculate probability

22. Which is the good measure of central tendency? Given any two reasons.

23. Write a short note on the follow:

iii) Baye’s theorem

iv) Poison distribution

24. What is Poisson distribution? Write Poisson formula.

1.In a bolt factory there are four machines A, B, C,D manufacturing respectively 20%, 15%,
25%, 40% of the total production. Out of these 5%, 4%, 3%, 2% are defective. If a bolt drawn
at a random was found defective. What is the probability that it was manufactured by A or D ?
2. The probabililty that a pen manufactured by a factory be defective is 1/10 if 12 such pens are
manufactured what is the probability that

(i) Exactly 2 are defective

(ii) Atb. If there are 2200 typographical errors randomly distributed in a 500 page
manuscript, find the probability that a given page contains exactly three errors ( Given e=
2.7183 ) least two are

3. Find the area under a standard normal curve between z = 0.75 and z 2.04
4.The life time of a certain electrical equipment has the normal distribution with mean 80 hours
and standard deviation 16 hours:

i)What is the probability that the equipment lasts at least 100 hours?
ii)If the equipment has already lasted 88 hours, what is the conditional probability
that it will last at least another 12 hours?

5. In a bolt factory machines A, B, C manufactures respectively 25%, 35%, and 40% of the total
productions of their output 5%, 4%, and 2% respectively are defective bolts. A bolt is drawn at
random and is found to be defective. What is the probability that is manufactured by
i) Machine A
 ii) Machine B

6.The management of photograph record company has discovered that the number of defects on
record appears to follow a Poisson distribution with mean equal to 0.4.

i) What is the probability that a record selected at random will have three defects?

ii) If management sets a policy that records sold to customers must not have any defects,
what percentage of it’s record production will not be made available for sales because of defects?
7. In a manufacturing organization with 5000 employees, the mean wages of workers in Rs 8000
per month with standard deviation of Rs 2000, assuming normal distribution estimate:

i) Number of workers getting salary below Rs 6000

ii) Number of workers getting salary above Rs10000

iii) Number of workers getting salary between Rs 7000 and Rs 9000

Given P(o<z>1)=0.34134 and P(0<z<0.3)= 0.19146.

8. For a pair of variables x and y, it was computed that bxy=0.85, byx=0.89 and σx=. Establish
relationship between the variables x and y.
9. A merchant’s file of 20 accounts contains 6 delinquent and 14 non delinquent accounts.

10. An auditor randomly selects 5 of these accounts for examination:

i) what is probability that the auditor finds exactly 2-deliquent accounts?

ii)find the expected number of delinquent accounts in the sample selected.

11. The incidence of occupational diseases in an industry is such that the worker have 20 percent
chance of suffering from it.what is the probability that out of six workers 4 or more will come in
contact of the diseases?
12. The following table gives the number of days in a 50 day’s period during which automobile
accidents occurred in a city.

No of 0 1 2 3 4
accidents

No of days 21 18 7 3 1

Fit a Poisson distribution to the data

13. A project yields an average cash flow of rs.500 lakhs, with standard deviation of rs.60 lakhs,
calculate the flowing probabilities.

Cash flow will be more than 560 lakhs.

Cash flow will be less than 420 lakhs.

14.The probability that a pen manufactured by a company will be defective is (1/10) Zfl2 such
pens are manufactures using biomomial distribution. Find the probability that:

a) Exactly two will be defective

 b) Atleast 3 will be defective

c) Atmost 3 will be defective

15. The frequency of dividends per shift in a factory is shown in the following tables.

Accidents per shift 0 1 2 3 4 Total

Frequency 192 100 24 3 1 320

Calculate the mean number of accidents per shift. Find the corresponding poisson distribution
16. The life time in hours of a certain electrical equipment has the normal distribution with mean
= 80 and standard deviation = 16

i) What is the probability that the equipment lasts at least 100 hours ?
ii) If the equipment has already lasted 88 hours what is the conditional
probability that it will last at least another 12 hours ?
17. The incident of occupational diseases in an industry is such that the worker have 20
percent chance of suffering from it. What is the probability that out of six workers 4 or more
will come in contact of the disease ?
18. The following table give the number of days in a 50 day period during which automobile
accidents occurred iln a city
Number of accidents. 0 1 2 3 4
Number of days 21 18 7 3 1
19. Life on an average 8 ships out of 10 arrives safely at a port, find the mean and standard
deviation of the number of ships arriving safely out of a total of 1600 ships.
20. A brokerage survey reports that 30 per cent of individual investors have used a discount
broker, i.e., one which does not charge the full commission. In a random sample of 9
individuals, what is the probability that
A) exactly two of the sampled individuals have used a discount broker ?
b) Not more than three have used a discount broker
c) At least three of them have used a discount broker.

21. Mr. Gutpa applies for a personal loan of Rs. 1,50,000/- from a nationalized bank to repair
his house. The loan offer informed him that over the years, bank has received about 2920
loan applications per year and that the probability of approval was on average, above
0.85.
 (a) Mr. Gupta wants to know the average and standard deviation of the number of loan ds
approved per year.

(b) Suppose bank actually received 2654 loan app0lications per year with an approval
probability of 0.82. What are the mean and standard deviation now ?

22. Suppose 10 per cent of new scooters will require warranty service within the first month
of its sale. A scooter manufacturing company sells 1000 scooters in a month

(a) Find the mean and standard deviation of scooters that require warranty service.

(b) Calculate the moment coefficient of skewers and kurtosis of the distribution.
23. The incidence of occupational disease in any industry is such that workers have 20 per
cent chance of suffering from it. What is the probability that out of six workers 4 or
more will come in contract of the disease?
24. A multiple choice test contains 8 questions with 3 answers to each question of which
only one is correct. A student answers each question with 3 answers to each question (of
which only one is correct). A student answers each questions by rolling a balanced dice
and checking the first answer if he gets 1 or 2, the second answer if he gets 3 or 4, and
the third answer if he gets 5 or 6. To get a distinction, the student must secure at least 75
percent correct answers. If there is no negative marking, what is the probability that the
student secured a distinction?
25. There screws produced by a certain machine were checked by examining the number of
defectives in a sample of 12. The following table shows the distribution of 128 samples
according to the number of defective items they contained.
26. What probability model is appropriate to describe a situation where misprints are
distributed randomly throughout the 100 pages of a book ? For this models what is the
probability that a page observed at random will contain at least three misprints.

27. A new automated production process had an average of 1.5 breakdowns per day.
Because of the cost associated with a breakdown, management is concerned about the
possibility of having three or more breakdowns during a day. Assume that breakdowns
occur randomly that the probability of a breakdown is the same for any two item intervals
 of equal length, and that breakdowns in one period are independent of breakdowns in
other periods. What is the probability of having three or more breakdowns during a day.

28. Suppose a life insurance company insures the lives of 5000 persons agreed 42. If studies
show the probability that any 42 years old person will die in a given year to be 0.001 find
the probability that the company will have to pay at least two claims during a given
years
29. A manufacturer who produces medicine bottles finds that 0.1 percent of the bottles are
defective. The bottles are packed in boxes containing 500 bottles. A drug manufacturer
buys 100 boxes form the producer of bottles. Using Poisson distribution find how many
boxes will contain:
(i) No defectives.
(ii) At least two defectives.
30. In a town 10 accident took placed in a span of 560 days assuming that the
number of accidents per day follows the passion distribution, find the
probability that there will be tree or more accidents in a day.
31. When the first prof of 200 pages of a book of 5000 pages was read, take
distribution of printing mistakes found are shown in the table. Fit a Poisson
distribution to the frequency distribution of printing mistakes. Estimate the
total cost of correcting the whole book by using the information provided
in the table below.
No.of misprints per Frequency Cost of detection and
page correction per page
0 113 1.00
1 62 1.50
2 20 2.50
3 3 3.00
4 1 3.50
5 1 4.00

The following table shows the number of customers returning the products
in a marketing territory. The data is for 100 stores.

Number of returns: 0 1 2 3 4 5 6
Customers 4 14 23 23 18 9 9
15. The following table give is the number of days in a 50 days period
during which automobile accidents occurred in a city;
No. of accidents 0 1 2 3 4
No. of days 21 18 7 3 1

Fit a Poisson distribution to the data

16. A market research agency that conducts interviews by telephone has found
from past experience that there is a 0.40 probability that a call made between
2.30 pm and 5.30 pm will be answered. Assuming a Bernoulli an process;

(a) Calculate the probability that an interviewers 0th answers comes on his 20th
call and that he will receive the first answer on his 3rd call.

(b) What is the expected number of calls necessary to obtain seven answers?
17. In a factory producing certain items, 30 percent of the items proeuce3d have
no defect, 40 percent have one defect, and 30 percent have tow defects. A
random sample of 8 items is taken from a days output. Find the probability that it
will contain items with no defect, 3 items with one defected and 3 items with two
defects.
18. Suppose the HRD Manager randomly selects 3 individual from a group of 10
employees for a special assignment. Assuming that 4 of the employees were
assigned to a similar assignment previously, determine the probability that
exactly two of the three employees have had previous experience
19. Suppose a particular industrial products is shipped in lots of 20. To determine
whether an item is defective a sample of 5 items from each lot is drawn. A lot is
rejected if more than one defective item is observed (if the lost is rejected, each
item in the lot is then tested). If a lot contains four defectives, what is the
probability that it will be accepted?