Q.1) Ford Motor Company advertises its cars on radio and on television.

The company is interested

in assessing the probability that a randomly chosen person is exposed to at least one of these two
modes of advertising. If we define event R as the event that a randomly chosen person was exposed
to a radio advertisement and event T as the event that the person was exposed to a television
commercial, define R ∪T and R ∩T in this context.

Q.2) According to an article in Fortune, institutional investors recently changed the proportions of
their portfolios toward public sector funds.4 The article implies that 8% of investors studied invest in
public sector funds and 6% in corporate funds. Assume that 2% invest in both kinds. If an investor is
chosen at random, what is the probability that this investor has either public or corporate funds?

Q.3) According to The New York Times, 5 million BlackBerry users found their devices nonfunctional
on April 18, 2007.5 If there were 18 million users of handheld data devices of this kind on that day,
what is the probability that a randomly chosen user could not use a device?

Q.4) ShopperTrak is a hidden electric eye designed to count the number of shoppers entering a store.
When two shoppers enter a store together, one walking in front of the other, the following
probabilities apply: There is a 0.98 probability that the first shopper will be detected, a 0.94
probability that the second shopper will be detected, and a 0.93 probability that both of them will be
detected by the device. What is the probability that the device will detect at least one of two
shoppers entering together?

Q.5) In a study by Peter D. Hart Research Associates for the Nasdaq Stock Market, it was determined that 20%
of all stock investors are retired people. In addition, 40% of all U.S. adults invest in mutual funds. Suppose a
random sample of 25 stock investors is taken.
a. What is the probability that exactly seven are retired people?

b. What is the probability that 10 or more are retired people?

c. How many retired people would you expect to find in a random sample of 25 stock investors?

d. Suppose a random sample of 20 U.S. adults is taken. What is the probability that exactly eight adults invested
in mutual funds?

e. Suppose a random sample of 20 U.S. adults is taken. What is the probability that fewer than six adults
invested in mutual funds?

f. Suppose a random sample of 20 U.S. adults is taken. What is the probability that none of the adults invested in
mutual funds?

g. Suppose a random sample of 20 U.S. adults is taken. What is the probability that 12 or more adults invested
in mutual funds?

h. For parts e–g, what exact number of adults would produce the highest probability? How does this compare to
the expected number?