Problems on Business Statistics

1) If it rains, a dealer in umbrella can earn Rs. 300 per day. If does not, he would lose
Rs. 80 per day. What is his expectation, if the probability of rainy day is 57/100?

Ans.
If rain earning Probability =300/300=1
If fair earning Probability =300-80)/300=11/15=0.733
If Probability =0.57=5.7/10=171/300
So his expectation =171

Example: If it rains an umbrella salesman can earn rupees 300 per day. If it is fair he can
lose Rs 80 per day. What is his expectation if the probability of price is 0.6?

If rain earning Probability =300/300=1

If fair earning Probability =300-80)/300=11/15
If Probability =0.6=6/10=180/300
So his expectation =180

2) Three coins are tossed simultaneously. Find the probability that they will fall with
two heads and one tail.

Ans:

Solution:

In tossing three coins, the sample space is given by

S = {HHH, HHT, HTH, THH, HTT, THT, TTH, TTT}

And, therefore, n(S) = 8.

(i) getting all heads

Let E1 = event of getting all heads. Then,

E1 = {HHH}
and, therefore, n(E1) = 1.
Therefore, P(getting all heads) = P(E 1) = n(E1)/n(S) = 1/8.

(ii) getting two heads

Let E2 = event of getting 2 heads. Then,
E2 = {HHT, HTH, THH}
and, therefore, n(E2) = 3.
Therefore, P(getting 2 heads) = P(E 2) = n(E2)/n(S) = 3/8.
(iii) getting one head

Let E3 = event of getting 1 head. Then,

E3 = {HTT, THT, TTH} and, therefore,
n(E3) = 3.
Therefore, P(getting 1 head) = P(E3) = n(E3)/n(S) = 3/8.

(iv) getting at least 1 head

Let E4 = event of getting at least 1 head. Then,
E4 = {HTT, THT, TTH, HHT, HTH, THH, HHH}
and, therefore, n(E4) = 7.
Therefore, P(getting at least 1 head) = P(E 4) = n(E4)/n(S) = 7/8.

(v) getting at least 2 heads

Let E5 = event of getting at least 2 heads. Then,
E5 = {HHT, HTH, THH, HHH}
and, therefore, n(E5) = 4.
Therefore, P(getting at least 2 heads) = P(E5) = n(E5)/n(S) = 4/8 = 1/2.

(vi) getting atmost 2 heads

Let E6 = event of getting atmost 2 heads. Then,
E6 = {HHT, HTH, HTT, THH, THT, TTH, TTT}
and, therefore, n(E6) = 7.
Therefore, P(getting atmost 2 heads) = P(E6) = n(E6)/n(S) = 7/8

Examples: When 3 coins are tossed randomly 250 times and it is found that three heads
appeared 70 times, two heads appeared 55 times, one head appeared 75 times and no head
appeared 50 times.

If three coins are tossed simultaneously at random, find the probability of:

(i) getting three heads,

(ii) getting two heads,

(iii) getting one head,

(iv) getting no head

Solution:

Total number of trials = 250.

Number of times three heads appeared = 70.

Number of times two heads appeared = 55.

Number of times one head appeared = 75.

Number of times no head appeared = 50.

In a random toss of 3 coins, let E1, E2, E3 and E4 be the events of getting three heads, two heads,
one head and 0 head respectively. Then,

(i) getting three heads

P(getting three heads) = P(E1)

Number of times three heads appeared/

=
Total number of trials

= 70/250

= 0.28

(ii) getting two heads

P(getting two heads) = P(E2)

Number of times two heads appeared/

=
Total number of trials
= 55/250

= 0.22

(iii) getting one head

P(getting one head) = P(E3)

Number of times one head appeared/

=
Total number of trials

= 75/250

= 0.30

(iv) getting no head

P(getting no head) = P(E4)

Number of times on head appeared/

=
Total number of trials
= 50/250

= 0.20

Note:

In tossing 3 coins simultaneously, the only possible outcomes are E 1, E2, E3, E4 and P(E1) +
P(E2) + P(E3) + P(E4)

= (0.28 + 0.22 + 0.30 + 0.20)

=1

Example:

3) The arithmetic mean and geometric mean of two items are 12.5 and 10 respectively.
Ascertain the value of the two items.
 Then,
a+b=20-------(1)
a×b=64--------(2)
Let's isolate the a in both equations so that we can solve for b:
a=20−b
a=64/b
Now since we have two distinct a equations, we can set these equal to each other!
20−b=64/b
Multiply both sides by b:
(20−b)×b=(64/b)×b
20b−b2=64
Now, move everything onto one side of the equation to solve this quadratic formula.

b2−20b+64=0
I'm not sure if you can see this, but I see a clear factorization method which is:

(b−16)(b−4)(b−16)(b−4)
This means that b= either 16 or 4. You can plug this back into the equation to find that the value
of a= is also 16 or 4.
So, (a,b)=(16,4)

OR
 4) A and B throw alternatively with a pair of dice. A win if he throws 6 before B
throws 7 and B, if he throws 7 before A throws 6. If A begins, show that his chance
of his winning is 30/61.

Ans.

The probability of A throwing ‘6’ = 5/36 .

So , the probability of A not throwing ‘6’ = 1 – 5/36 = 31/36 .

The probability of B throwing ‘7’ = 6/36 .

So, the probability of B not throwing ‘7’ = 1 – 6/36 = 30/36 .

The probability that somebody wins =[1-{(31/36)(30/36)}].So,

The probability of winning of A provided that somebody wins

= (5/36)/[1-{(31/36)(30/36)}]=30/61.

OR
5) A subcommittee of 6 members is to be formed out of a group of 7 men and 4 ladies.
Calculate the probability that the subcommittee will consist of at least two ladies.

6) A doctor has decided to prescribe two new drugs to 200 heart patients, as follows: 50
get drug A, 50 get drug B and get 100 get both. Drug A reduce the probability of a
heart attack by 35 %, drug B reduced the probability by 20% and the two drugs,
when taken together, work independently. The 200 patients were chosen so that
each has an 80% chance of having a heart attack. If a randomly selected patient has
a heart attack, what is the probability that the patient was given drugs.
7) If the price of a commodity double in a period of 4 years, what is the average
percentages increased per year.