1)

If Var(X) = 25, Var(Y) = 16, and the correlation between X and Y is -.5, Find
a) Cov(X, Y)
b) Cov(2X, 3Y)
c) Var(X+Y)
d) Var (2X + 3Y)

a -10
b -60
c 21
d 124

2)
A Motel has 15 bedrooms. From past experience, the manager knows that on
average, 20% of the people who make room reservations don’t show up. On a
day, the manager accepts 20 reservations. If a customer with a reservation sh
and the motel has run out of rooms, it is the motel’s policy
to pay $100 as compensation to the customer.
a) What is the probability distribution of the compensation that the motel
must pay?
b) What is the expected value and standard deviation of the compensation
that the motel must pay?

# Show p() Comp Comp p() Comp*p()

0 1.048576E-14 0 0 0.37035174 0
1 8.388608E-13 0 100 0.2181994 21.8199402
2 3.187671E-11 0 200 0.20536414 41.0728286
3 7.65041E-10 0 300 0.13690943 41.0728286
4 1.30057E-08 0 400 0.05764608 23.0584301
5 1.664729E-07 0 500 0.01152922 5.76460752
6 1.664729E-06 0
7 1.331783E-05 0 132.788635
8 8.656592E-05 0 E(ComP)
9 0.0004616849 0
10 0.0020314137 0
11 0.0073869589 0
12 0.0221608768 0
13 0.0545498505 0
 14 0.109099701 0
15 0.1745595216 0
16 0.2181994019 100
17 0.205364143 200
18 0.1369094287 300
19 0.0576460752 400
20 0.011529215 500

3)
The Lindell Corporation manufactures high-speed line printers for computer s
The Lindell printers are compatible with most of the major computer vendors'
hardware. Because of the intense competition in the marketplace for line print
other peripherals, Lindell has made every attempt to make a high-quality print
However, a recent production run of 20 printers contained two printers that tes
as defective (the other eighteen were fine). The problem was traced to a shipm
defective cable that Lindell received shortly before the production run started.
The production manager ordered that the entire batch of 20 printers be isolate
other production output until further testing could be completed. Unfortunately
shipping clerk packaged 10 of these isolated printers and shipped them to the
State Purchasing Department to fill an order that was already overdue. By the
production manager noticed what had happened, the printers were already in
The immediate concern was whether at least one of the defectives had been i
the shipment. The new shipping clerk thought there was a good chance that n
defectives were included. What is the probability that no defectives were actua
shipped? What is the probability at least one defective was shipped?

p(0 defectives)

0.2368421053

p(at least 1 defective)

0.7631578947

4
The number of users of an ATM machine has a Poisson Distribution with a me
10 minute interval.
a.
Find the probability of 26 to 28 users within a 15 minute interval.
b.
Find the standard deviation of the number of users in 20 minutes

26 27 28
7.740432E-08 2.15012E-08 5.75925E-09 1.046648E-07

b
3.1622776602

5)
Suppose that a shipment of 100 fruit crates has 11 crates in which the fruit
shows signs of spoilage. A quality control inspection selects 8 crates at rando
these selected crates, and then counts the number (out of 8) in which the fruit
signs of spoilage. What is the probability that exactly two crates in the sample
signs of spoilage? (Hint: Hypergeometric)

0.1717515503

Hint: Binomial) The probability is 0.316 that an audit of a retail business will tu
irregularities in the collection of state sales tax. If 16 retail businesses are aud
the probability that
(a) exactly 5 will have irregularities in the collection of state sales tax.
(b) at least 5 will have irregularities in the collection of state sales tax.
(c) fewer than 5 will have irregularities in the collection of state sales tax.
(d) more than 5 will have irregularities in the collection of state sales tax.

a # irregular
0.2110256087 0
1
b 2
0.6048579632 3
4
c 5
0.3951420368 6
 7
d 8
0.3938323545 9
10
11
12
13
14
15
16

Suppose that a machine shop orders 200 bolts from a supplier. To determine
not to accept the shipment of bolts, the manager of the shop randomly selects
If none of the 12 randomly selected bolts is found to be defective, she conclud
the shipment is acceptable. Otherwise, she sends back the order to the suppl
a.
If 20 bolts out of the 200 that had been sent are defective, what is the
probability that none of the selected bolts are defective?
b.
If 10 bolts out of the 200 that had been sent are defective, what is the
probability that at least one of the selected bolts is defective and hence the
order is sent back?

a
0.2718384247

b
p(0) p(at least 1)
0.5914521339 0.4085478661
 d Y is -.5, Find

er knows that on the

n’t show up. On a particular
h a reservation shows up

at the motel

compensation

Comp^2*p()
0
2181.99402
8214.56572
12321.8486
9223.37204
2882.30376

17191.2625 131.115455
Var(Comp) std(Comp)
 s for computer systems.
mputer vendors'
lace for line printers and
high-quality printer.
o printers that tested out
traced to a shipment of
ction run started.
printers be isolated from
ed. Unfortunately, a new
pped them to the California
y overdue. By the time the
s were already in transit.
ctives had been included in
ood chance that no
ctives were actually
hipped?

ribution with a mean of 5 per

which the fruit
8 crates at random, opens
in which the fruit shows
tes in the sample show

il business will turn up

sinesses are audited, find

ales tax.
ales tax.
te sales tax.
e sales tax.

p()
0.00229561
0.0169687
0.05879506
0.12675894
0.19032373
0.21102561
0.17873417
 0.11796156
0.06130897
0.02517691
0.00814201
0.00205173
0.00039495
5.61421E-05
5.55792E-06
3.42359E-07
9.88538E-09

er. To determine whether or

randomly selects 12 bolts.
ctive, she concludes that
rder to the supplier.

hat is the

hat is the
and hence the