Assignment Probability Theory on CLT and Chebysheve’s Inequality

Due Date: Last day of semester teaching: Max Mars: 15

Every student will submit his/her own individual assignment in hard copy. Each student will do
the assignment set assigned to him/her. Assignment should be written in good hand writing on
full scape paper sheets. Please show all the steps in solution of a question as we discus in class.
Avoid plagiarism. Do your own work.

SET A
SARINA KALEEM
QUIRAAT KHAN
MUHAMMAD MUSTAFA JUNAIDY
JAWERIA ASIF
MARYAM JAVED DADABHOY
MUHAMMAD UZAIR
SAMEER SARWANA
HUMA ALVI
HAROON SHAHZAD
USHNA HAIDER
MOIZ MOBEEN KHAN
SAAD UZ ZAMAN

Q-1: A large population has mean 100 and standard deviation of 16.
a) What is the probability that the sample mean will be within ± 2 of the population mean if the
sample size is 100.
b) What is the probability that the sample mean will be within ± 2 of the population mean if the
sample size is 400.
c) What is the consequence of a larger sample size in this case?
Q-2: A random variable X has probability density function
f ( x )=12 x 2−12 x 3 , 0 ≤ x ≤1
Let Y = X 1 + X 2+ …+ X 225 be the sum of 225 independent observations from X.
a) Find the expected value and variance of Y
b) Find P(Y <141).

Q-3: If the number of items produced in a factory during a week is a random variable with mean
100 and variance 400.
a) Use Markov’e inequality to compute an upper bound on the probability that this week’s
production will be at least 120.
b) Use Chebyshev’s inequality to compute the probability that this week’s production will
be between 95 and 115.
 SET B
SIMRAH SHABBIR
AREEBA MESIA
MUSTAFA QAMAR SHAMIM
SADAF AYAZ
SARFARAZ JAMAL
MUHAMMAD ALI
ARSALAN NAZIR JATOI
SYED SHAHEER AKBER IKRAMA
FARYAL ZAIDI
Sirat Ali Ahmad
NAQEEB ULLAH
UZAIR AHMED

Q-1: Claims filed under auto insurance policies follow a continuous but unknown distribution
with mean 19400 and standard deviation 5000.
a) What is the probability that the average of n = 25 randomly selected claims exceeds 20,000?
b) What is the probability that the average of n = 50 randomly selected claims exceeds 20,000?
Q-2: A random variable X has probability density function
f ( x )=3 (1−x)2 , 0 ≤ X ≤ 1
Let Y = X 1 + X 2+ …+ X 225 be the sum of 225 independent observations.
a) Find the expected value and variance of Y
b) Estimate P(Y <125).

Q-3: Suppose that it is known that the number of items produced in a factory during a week is a
random variable with mean 50.
(a) What can be said about the probability that this week’s production will exceed 75?
(b) If the variance of a week’s production is known to equal 25, then what can be said about the
probability that this week’s production will be between 40 and 60?

SET C
SIMRUN NOMAN KHAN
MUHAMMAD SAAD
SAHAD BARKAT ALI MORANI
TRISHA DHANANI
SOHA KHAN
ZAINAB AQEEL
HAFSA MAHMOOD
YOUSUF ALI
ALI ZULKIFAL AHMED
MUHAMMAD ASAD
ABDUL GHAFFAR
SYED MUHAMMAD MUGHEES ABBAS
Q-1: A charity receives a total of 2025 contributions. Contributions are independently distributed
with mean 3125 and standard deviation of 250.
a) Calculate the 90th percentile of the distribution of total contribution received.
b) Calculate the third quartile (Q3) of the distribution of total contribution received.

Q-2: Suppose that the rounding errors in a budget study are independent and uniformly
distributed over the interval [−$50, +$50]. Let Y = Y1 + Y2 +…+ Y100 be the total rounding error
for 100 items.
a) Find the mean and variance of total rounding error of 100 items Y.
b) Find the probability that P(|Y| > $500).

Q-3: Let X1,X2, . . . , X20 be independent Poisson random variables with mean 1.
(a) Use the Markov inequality to obtain a bound on P ¿
(b) Use the central limit theorem to approximate the P ¿
[Note: if X1, X2, …,Xk are Poisson RVs with means μ , the sum Y= X1+ X2+ …+Xk is also a
Poisson RV with mean k μ]

SET D
MAHNOOR SHEIKH
ALIYA ZUBAIR
ABDUL HASEEB
RAMSHA IMRAN
WINESH KUMAR
ANOSHA ASIF
SYED MUHAMMAD MAAZ
SYED SHAH HASEEM
SYED MOOSA RAZA
RUMAISA RASHID
DANIYAL ZUBAIR KHAN

Q-1: Suppose patron at a local large health club found that ages (X) of members are distributed
according an unknown distribution with mean age of 32.5 years and standard deviation of 7.4
years. Find the probability that P ( X <31 ) if:
a) A sample of 25 is selected
b) A sample of 50 is selected.
Q-2: A student makes 100 check transactions in a period covering his bank statement. Rather
than subtract the amount he spends exactly, he rounds each checkbook entry off to the nearest
dollar. Assume that the errors are uniformly distributed on in the interval [-0.5$, 0.5$]
a) Find the mean and variance of rounding error of total of 100 transactions.
b) What is the probability the total error is more than $5?
Q-3: Let X1,X2, . . . , X20 be independent Exponential random variables with mean β=¿ 5.
(a) Use the Markov inequality to obtain a bound on P ¿
(b) Use the central limit theorem to approximate the P ¿
[Note: if X1, X2, …Xk are Exponential RVs with means β ,then the sum Y= X1+ X2+ …+Xk
is a Gamma RV with parameter α =¿ k and β ]