Practice Exercise

Q. 1 Scores on a recent national statistics exam were normally distributed with a mean of 80 and
a standard deviation of 6.

a.What is the probability that a randomly selected exam will have a score of at least 71?
b What percentage of exams will have scores between 89 and 92?
.
c. If the top 2.5% of test scores receive merit awards, what is the lowest score eligible for
an award? (NORMAL CONTINUOUS)

Q.2 Patients arrive randomly and independently at a doctor’s clinic from 8.00 AM at an average
rate of one in ten minutes. The waiting room has 3 chairs. What is the probability that some
patients will have to stand when the doctor arrives at 9.00 AM. (Assume that patients come alone
to the clinic and if seat is available, they would sit on the chair) (POISSON DISTRIBUTION)

Q3 The average stock Prose for companies making up the S&P 500 is 430, and the standard
deviation is $8.2. Assume the stock prices are normally distributed.
a) What is the probability a company will have a stock price of at least $40?
b) What is the probability a company will have a stock price no higher than $20?
c) How high does stuck price have to be to put to put a company in the top 10% (NORMAL
CONTINUOUS)

Q4.Customer ‘s arrival for inquiring about an insurance plan in a company are random and
independent, the probability of an arrival in any one minute period is same as the probability of
arrival in any other one minute period. Answer the following questions assuming a mean arrival
rate of 3 customers per minutes.

a) What is the probability of exactly three customers in a one minute period?

b) What is the probability of at least three customers in a one minute period? (POISSON
DIST)

Q5.Airline passengers arrive randomly and independently at the passenger screening facility at
the major international airport .The mean arrival rate is 10 passengers per minute.
a) Compute the probability of no arrivals in 1 minute period
b) Compute the probability that three or fewer passengers arrive in a 1 minute period (POISSON
DIST)

Q6 Nine percent of the undergraduate students carry credit card balances greater than $7000.
(Readers Digest, July 2002). Suppose 10 undergraduate students are selected randomly to be
interviewed about credit card usage.
a) Is selection of 10 students a binomial process? Explain.
b) What is the probability that two of the students will have credit card balance greater than
$7000?
c) What is the probability that none will have credit card balance greater than $7000?
d) What is the probability that at least 3 will have credit card greater than $7000
(BINOMIAL DIST)