Submitted to:

Mohammed Mosleh-Uddin
School and Business Economics
Subject: Business Statistics
Course Code: BUS 511
Email: m.moslehuddin@gmail.com

Submitted by:
Arindam Kumar Bardhan
ID: 2035592660
Course Code: BUS 511
24. Suppose P(X1) = .75 and P(Y2|X1) = .40 What is the joint probability X1 of and Y2?
Answer: Joint probability P(X1 and Y2) = P(X1) * P(Y2|X1)
= .75 * .40 = .3

27. Refer to the following table:

First Event
Second Event A1 A2 A3 Total
B1 2 1 3 6
B2 1 2 1 4
Total 3 3 4 10

a. Determine P(A1).
b. Determine P(B1|A2).
c. Determine P(B2 and A3).

Answer: (a) P(A1) = 3/10 = .3

(b) P(A2 and B1) = P(A2) * P(B1|A2)

=> P(B1|A2) = P(A2 and B1)/ P(A2)
= (1/10)/(3/10)
= 1/3 = .33

(c) P(B2 and A3) = 1/10 = .1

35. The Ludlow Wildcats baseball team, a minor league team in the Cleveland Indians
organization, plays 70 percent of their games at night and 30 percent during the day. The team
wins 50 percent of their night games and 90 percent of their day games. According to today’s
newspaper, they won yesterday. What is the probability the game was played at night?

Answer:
Night Game Day Game Total
Win 50% of 70 = 35 90% of 30 = 27 62
Loss 50% of 70 = 35 10% of 30 = 3 38
Total 70 30 100

P(Win) = 62/100
P(Win and Night Game) = 35/100

Now, P(Win and Night Game) = P(Win)*P(Night Game | Win)

P(Night Game | Win) = P(Win and Night Game)/ P(Win)
= (35/100)/(62/100)
 = .5645
Chapter 6

3. Compute the mean and variance of the following probability distribution.

x P(x)
5 .1
10 .3
15 .2
20 .4

Answer:
x P(x) (x- µ)2 (x- µ)2P(x)
5 .1 90.25 9.025
10 .3 20.25 6.075
15 .2 .25 .05
20 .4 30.25 12.1
Total 27.25

We know, Mean, µ = ∑[xP(x)]

= (5*.1)+(10*.3)+(15*.2)+(20*.4)
= 14.5

Variance, σ2 = ∑(x- µ)2P(x)

= 27.25

23. The speed with which utility companies can resolve problems is very important. GTC, the
Georgetown Telephone Company, reports it can resolve customer problems the same day they
are reported in 70 percent of the cases. Suppose the 15 cases reported today are representative of
all complaints.
a. How many of the problems would you expect to be resolved today? What is the standard
deviation?
b. What is the probability 10 of the problems can be resolved today?
c. What is the probability 10 or 11 of the problems can be resolved today?
d. What is the probability more than 10 of the problems can be resolved today?

Answer: (a) Problems expected to be resolved today, µ = nπ

= 15*.7
= 10.5
Standard Deviation, σ = √ nπ (1 − π )
= 1.775

15 !
(b) 15C10 =
10! ( 15 −10 ) !
= 3003

Probability that 10 of the problems can be resolved today P(10) = 15C10*.710*(1-.7)15-10

= .206
(c) Probability that 11 of the problems can be resolved today P(11) = 15C11*.711*(1-.7)15-11
= .2186
Probability that 10 or 11 of the problems can be resolved today = P(10) + P(11)
= 0.4246

(d) Probability that more than 10 of the problems can be resolved today
= P(11) + P(12) + P(13) + P(14) + P(15)
= 15C11*.711*(1-.7)15-11 + 15C12*.712*(1-.7)15-12 + 15C13*.713*(1-.7)15-13 + 15C14*.714*(1-.7)15-14 +
15 15-15
15C15*.7 *(1-.7)

= .515

Chapter 7
3. The closing price of Schnur Sporting Goods Inc. common stock is uniformly distributed
between $20 and 30 per share. What is the probability that the stock price will be:
a. More than $27?
b. Less than or equal to $24?
Answer: (a) The base from 27 to 30 is 3.
1
So, P(27<stock price<30) = ∗3
30− 20
= .3
(b) The base from 20 to 24 (including 24) is 5.
1
So, P(20<stock price<24) = ∗5
30− 20
= .5

15. A recent study of the hourly wages of maintenance crew members for major airlines showed
that the mean hourly salary was $20.50, with a standard deviation of $3.50. Assume the
distribution of hourly wages follows the normal probability distribution. If we select a crew
member at random, what is the probability the crew member earns:
a. Between $20.50 and $24.00 per hour?
b. More than $24.00 per hour?
c. Less than $19.00 per hour?
20.5− 20.5
Answer: (a) Z1 =
3.5
=0
24 −20.5
Z2 =
3.5
=1
The area under a normal curve between a z-value of 0 and a z-value of 1 is .3413
So, Probability = 34.13%

24 −20.5
(b) Z =
3.5
=1
P(z<1.00) is found by reading down the Z column to the row1.0 and then selecting the
probability from the column labeled 0.00 to be 0.8413.
The probability that the crew member earns more than $24.00 per hour is:
P(x>24) = 1−0.8413
P(x>24) = 0.1587
P(x>24) = 15.87%
 19− 20.5
(c) Z =
3.5
= -0.43
P(z<-0.43) is found by reading down the Z column to the row-0.4and then selecting the
probability from the column labeled 0.03 to be .3336
The probability that the crew member earns less than $19.00 per hour is:
P(x<19) = 33.36%