Tutorials 4 probability distributions of both discrete and continuous variables.

Question 1

Write down the sample space of rolling a pair of dice (one white dice and one black dice).
Sample space: 6 x 6 = 36

Calculate:
(a) The probability of getting at least one double six in 24 throws of this
experiment.
Trong 1 lần tung xúc sắc: có 36 TH xảy ra (trong đó 35 trường hợp không có cả 2 mặt đều là 6)

→ Xác suất để k ra double 6 trong 1 lần là: 35/36

Mà có 24 lần → xác suất k ra 2 mặt 6 trong 24 lần là (35/36)^24

Mũ 24 vì 24 tung là độc lập với nhau, mỗi lần tung ra 36 kqua

→ Probability of getting at least one double six in 24 throws: 1- (35/36)^24 = 0,49

(b)The probability of the event A that the faces sum up to 3.

Trong 1 lần tung xúc sắc: chỉ có 2 TH tổng 2 mặt xúc sắc = (1,2) ; (2,1)

→ Xác suất = 2/36 = 0.05

Now we throw the white dice before the black dice and suppose that the white dice comes up
1. What is the probability of A?

→ Probability = 1/6 vì lần đầu tung white đã ra 1 rồi, đến khi tung xx đen thì chỉ có 6 TH, trong đó
chỉ có 1 TH để ra 2
Conditional probability: P(A|E)=P(A&E)/P(E) = 1/36 : 1/6 = 1/6

Question 2
Sketch the distribution of Z, a standard normal variable. Use printed tables to answer the
following.
Z table: http://www.z-table.com/uploads/2/1/7/9/21795380/8573955.png?759
bản đầy đủ: http://www.z-table.com/

(c) Find the probabilities listed below.

i. P(Z<1.07)
Nhìn bảng → 0.8577

ii. P(Z>-1.21) = 1- 0.1131

http://statcalculators.com/wp-content/uploads/2018/02/z-score-02.png (bảng này nhìn
cái ra đáp số k cần trừ)

iii. P(-1.32<Z<1.99) = P(Z<1.99) - P(Z< -1.32) = 0.9767 – 0.0934 = 0.8833

(e) Find the value of c which makes the following statements true.
i. P(Z<c)=0.20
c= -0.84 chứ nhỉ
ii. P(|Z|>c)=0.02
→ P(|Z|<c)=0.98 → c=2.05
|Z|>c -> Z<-c hoặc Z>c = 0.01
iii. P(|Z|<c)=0.90
c=1.29
|Z|<c -> -c<Z<c
Question 3
A fast food chain pays its teenage employees an average wage of $9.20 per hour with a standard
deviation of 50 cents. Assuming wages are approximately normally distributed, answer the
following questions.
μ = 9.20 ; σ = 0.50

(a)What proportion of teenage employees receive wages between $8.50 and $10 per hour?

Ta có: z = (x1 - μ)/σ = (8.50 - 9.20)/0.50 = -1.4

z = (x2 - μ)/σ = (10 - 9.20)/0.50 = 1.6

Cần tìm P(8.50 < x < 10) = P(-1.4 < z < 1.6) = P(z<1.6) - P(z<-1.4) = 0.9452 - 0.0808 =
0.8644
(b)Nineteen-year-olds, who constitute 6% of the chain’s teenage workforce, are the most
highly paid. What would be their minimum hourly wage?

Gọi cái minimum wage là a

P(x >= a) = 0.06

P(x <= a) = 1 - P(x >= a)

P(x <= a) = 1 - 0.06 = 0.94

P(Z ≤ (a-µ)/0.50 ) = 0.94

Theo bảng: P( z ≤ 1.56) = 0.94

→ (a-µ)/0.50 = 1.56

→ a =1.56 * 0.5 + 9.20 = $9.98

Question 4
A portfolio is composed of two stocks. Given the following parameters associated with the
returns of the two stocks:
Sto 1 2
ck
Proportion of portfolio 0. 0.
(w) 30 70
Mean (E) 0. 0.
12 25
Standard Deviation 0. 0.
02 15
 a. Determine the mean and standard deviation of the return on the portfolio
when the coefficient of correlation is equal to 0.5; 0.25; and 0.

b. Describe what happens to the expected value and standard deviation of the
portfolio returns when the coefficient of correlation decreases.

Hints: you need to read an example required in the lecture notes before solving question 4.