PRE-TERM STATISTICS

Practice Questions
Contents

1. Probability ..................................................................................................................................... 2
2. Permutations ................................................................................................................................. 3
3. Combinations................................................................................................................................ 4
4. Venn Diagrams ............................................................................................................................. 5
5. Total Probability Theory & Conditional Probability............................................................... 7
6. Bayes Theorem ............................................................................................................................. 8
7. Probability Distributions- Random Variables ........................................................................ 10
8. Probability Density Normal Distribution ............................................................................... 12
9. Expected value............................................................................................................................ 13
10. Other types of Distributions: .................................................................................................. 15
11. Covariance and Correlation.................................................................................................... 16
1. Probability
1. A die is rolled, find the probability that an even number is obtained?
Let us first write the sample space N of the experiment.
N = {1,2,3,4,5,6}
Let n be the number of times "an even number is obtained" and write it down.
n = {2,4,6}
We now use the formula of the classical method of probability.
P= n/N
N = Total number of possible outcomes
n = number of times a given event occurs
P=n/N=3/6=1/2

2. Two coins are tossed, find the probability that two heads are obtained. _________
Note: Each coin has two possible outcomes H (heads) and T (Tails).
The sample space N is given by.
N= {(H,T),(H,H),(T,H),(T,T)}=4
Let n be the event "two heads are obtained".
n = {(H,H)}=1
P= n / N= 1 / 4

3. Which of these numbers cannot be a probability?

A.1.001
B. 0.5
C. 1
D. 0
Option A-1.001

4. A card is drawn at random from a deck of cards. Find the probability of getting
the 3 of diamond.
A. 1/52
B. 3/52
C. 2/52
D. 0
Option A: Let n be the event "getting the 3 of diamond". An examination of the sample space shows that there is
one "3 of diamond" so that n= 1 and N = 52. Hence the probability of event E occurring is given by P = 1 / 52
2. Permutations
1. A circuit board contains 4 relays each of which can be set to any of three positions.
What is the total number of distinct configurations for the 4 relays?

Answer: --------.
Each relay can be set in 3 ways and we have 4 relays. So, the total number of configurations is (3)(3)(3)(3) = 81.

2. The total number of different ways in which the letters of the word “count” can be

a) 120
b) 240
c) 160
d) 180
Option A: arranged is 5! = (5)(4)(3)(2)(1) = 120. It is important here that the letters are all different

3. 6 horses run a race. The total number of possible results of this race (assuming no
ties) is _____
6! = (6)(5)(4)(3)(2)(1) = 720.

4. A search engine ranks 11 websites related to a query in order of relevance. How

many different rankings are possible?

Answer --------
11!
3. Combinations
1. The Indian Cricket team consists of 16 players. It includes 2 wicketkeepers and 5
bowlers. In how many ways can you select a cricket team of eleven players if you have
to select 1 wicketkeeper and at least 4 bowlers?

A) 1024

B) 1028

C) 1092

D) 1084
Answer: Option C; There are two ways, they are 2C1×5C4×9C6 = 840; 2C1×5C5×9C5 = 252. Therefore, the
total number of ways of selecting the team = 840 + 252 = 1092.

2. From a group of 6 men and 4 women we have to choose a committee of 5 people.

How many committees are possible if there are no restrictions?

A) 262

B) 252

C) 785

D) 9800
Answer: B) = 252
4. Venn Diagrams
1. In a community, 60% of people own car and 40% of car owners live in a villa. If 80%
of people who live in a villa own car too, then what % of people of community:

– Live in villa
– Own car but do not live in a villa
– Live in a villa but do not own car
– Neither live in a villa nor own car

Let Total = 100, A : Car owners; B : People who live in Villa

A = 60
A ∩ B = 40% of 60 = 24
80% of B = 24, therefore B = 30
Live in Villa = 30
Own a car but do not live in Villa : 60 – 24 = 36
Live in a Villa but do not own a car : 30 – 24 = 6
Neither = 60 + 30 - 24 0r 100 - (36+24+6) = 34

2. In a survey of 500 students of a college, it was found that 49% liked watching
football, 53% liked watching hockey and 62% liked watching basketball. Also, 27%
liked watching football and hockey both, 29% liked watching basketball and hockey
both and 28% liked watching football and basketball both. 5% liked watching none of
these games.

– How many students like watching all the three games?

– Find the ratio of number of students who like watching only football to those
who like watching only hockey.

– Find the number of students who like watching only one of the three given
games.

– Find the number of students who like watching at least two of the given
games.
 n(F) = percentage of students who like watching football = 49%
n(H) = percentage of students who like watching hockey = 53%
n(B)= percentage of students who like watching basketball =
62%
n ( F ∩ H) = 27% ; n (B ∩ H) = 29% ; n(F ∩ B) = 28%
Since 5% like watching none of the given games so, n (F ∪ H ∪
B) = 95%.
Now applying the basic formula,
95% = 49% + 53% + 62% -27% - 29% - 28% + n (F ∩ H ∩ B)
Solving, you get n (F ∩ H ∩ B) = 15%.
Now, make the Venn diagram as per the information given.

Number of students who like watching all the three games = 15

% of 500 = 75.
Ratio of the number of students who like only football to those who like only hockey = (9% of 500)/(12% of 500)
= 9/12 = 3/4.
The number of students who like watching only one of the three given games = (9% + 12% + 20%) of 500 =
205
The number of students who like watching at least two of the given games=(number of students who like
watching only two of the games) +(number of students who like watching all the three games)= (12 + 13 + 14 +
15)% i.e. 54% of 500 = 270.

3. Of all flashlights in a large shipment, 15% have a defective bulb, 10% have a
defective battery, and 5% have both defects. If you purchase a flashlight from the
shipment what are the probabilities of the following:

– A defective light bulb or a defective battery,

– A good bulb or a good battery,

– A good bulb and a good battery.

L be the event of having a bad light bulb.

B be the event of having a bad battery.
L’ is the event of having a good light bulb.
B’ is the event of having a good battery.
P(L)=0.15, P(B)=0.10, P(L ∩ B)=0.05
Probability of having a bad bulb or bad battery is P(L U B)
=P(L)+P(B)- P(L ∩ B)= 0.15+0.10-0.05=0.20=20%.
The probability of having a good bulb or good battery is P(L’ U B’).
Using De Morgan’s laws L’ U B’= (L ∩ B)’
Thus P(L’ U B’) = P((L ∩ B)’)=1-P(L ∩ B)=1-0.05 = 0.95 = 95%
The last part where we have a good bulb and good battery is
P(L’∩B’)=P((L U B)’)=1-P(L U B)=1-.2=.8=80%
5. Total Probability Theory & Conditional Probability
1. In a country 60% of registered voters are Party A, 30% are Party B and 10% are
Independents. When those voters were asked about increasing Healthcare spending
40% of Party A opposed it ,65% of the Party B opposed it and 55% of the Independents
opposed it. What is the probability that a randomly selected voter in this country
opposes the increased Healthcare spending?
A = {Party A},Pr(A) = 0.6
B = {Party B}, Pr(B) = 0.3
I = {Independents}, Pr(I) = 0.1
X = {registered voters opposing increased Healthcare spending}
Pr(X/A) = 0.4, Pr(X/B) = 0.65, Pr(X/I) = 0.55.
By the total probability theorem:
Pr(X) = Pr(X/A) Pr(A) + Pr(X/B) Pr(B) + Pr(X/I) Pr(I)
= (0.4 * 0.6) + (0.65 * 0.3) + (0.55 * 0.1) = 0.49 = 49%

2. In a class, 40% of the students' study math and science. 60% of the students' study
math. What is the probability of a student studying science given he/she is already
studying math?
P(M and S) = 0.40
P(M) = 0.60
P(S|M) = P(M and S)/P(S) = 0.40/0.60 = 2/3 = 0.67

3. In a certain hospital, 10% of the patients are prescribed narcotic pain killers.
Overall five percent of the patients are addicted to narcotics. Out of all people
prescribed pain killers, 8% are addicts. If a patient is an addict, what is the
probability he is prescribed pain killer?
A: Prescribed pain killers : 10%
B: Addict : 5%
P(B|A) = 8%
P(A|B) = P(B|A) * P(A)/P(B) = 16%

4. A consulting firm is bidding for two jobs, one with each of two multinational
corporations. The company executives estimate that the probability of obtaining the
consulting job with firm A, event A, is 0.45. The executives also feel that the
company should get the job with firm A, then there is a 0.9 probability that firm B
will also give the company the consulting job. What are company’s chances of
getting both jobs?
We are given probability of A to be 0.45. We also know that P(B|A) = 0.90, we are looking for probability of A
and probability of B which is P(A ∩ B). From conditional probability equation we know that
P(B|A) = P (A ∩ B)/P(B), therefore P(A ∩ B) = (P(B|A) * P(A) = 0.90 * 0.45 is 0.405 or 40.5%
6. Bayes Theorem
1. At a certain university, 4% of men are over 6 feet tall and 1% of women are over 6
feet tall. The total student population is divided in the ratio 3:2 in favour of women.
If a student is selected at random from among all those over six feet tall, what is the
probability that the student is a woman?

Let M={Student is Male}, F={Student is Female}

T={Student is over 6 feet tall}
We know that
P(M)=2/5, P(F)=3/5,
P(T|M)=4/100 and P(T|F)=1/100
We require P(F|T)
Using Bayes Theorem and Law of Total Probability,
𝑃(𝑇|𝐹)𝑃(𝐹)
𝑃(𝐹|𝑇) =
𝑃(𝑇)
𝑃(𝑇|𝐹)𝑃(𝐹)
𝑃(𝐹|𝑇) =
𝑃(𝑇|𝐹)𝑃(𝐹) + 𝑃(𝑇|𝑀)𝑃(𝑀)
1 3
× 3
= 100 5
1 3 4 2 =
× + × 11
100 5 100 5

2. If a Cricketer is tested for steroids, the test result will be either Positive or
Negative. However, these tests are never perfect. Assume 4% of all cricketers are
steroid users. The accuracy of the test is such that 3% of tests on steroid-free
cricketers yield a positive result by mistake. Also, of all steroid-users, 92% are
correctly identified by this test. We give the test to two weightlifters: Rahul and
Kamal.

Rahul gets a Positive result. What is the probability that Rahul is taking steroids?
What is the probability that Rahul is steroid-free?
Kamal gets a Negative result. What is the probability that Kamal is steroid-free?
What is the probability that Kamal is taking steroids?

P(Steroids) = 0.04 ; P(No Steroids) = 0.96

P(Steroids and Positive) = 0.04*0.92 = 0.368 & P(Steroids and Negative)= 0.04*0.08 = 0.0032
P(No Steroids and Positive) = 0.96*0.03 = 0.0288 & P(No Steroids and Negative)= 0.96*0.97 = 0.9312

P(Steroids|Positive) = P(Steroids and Positive)/P(Positive) = P(Steroids and Positive)/ P(Steroids and

Positive)+ P(No Steroids and Positive) = 0.5610
P(No Steroids|Positive) = 1 – 0.5610 = 0.4390
P(No Steroids|Negative) = P(No Steroids and Negative)/P(Negative) = 0.9966
P(Steroids|Negative) = 1 – 0.9966 = 0.0034
Alternatively, you can solve using contingency table

3. Consider a test for an illness. The test has a known reliability:

When administered to an ill person, the test will indicate so with probability 0.92.
When administered to a person who is not ill, the test will erroneously give a positive
result with probability 0.04. Suppose the illness is rare and is known to affect only
0.1% of the entire population. If a person is randomly selected from the entire
population and is given the test and the result is positive, what is the posterior
probability (posterior to the test result) that the person is ill.

Let Z denote the event that the test result is positive and I the event that the person is tested ill.
Given P(I) = 0.001 P(Ī) = 0.999 P(Z|I) = 0.92 and P(Z| Ī) = 0.04
We are looking for the probability that the person is ill given a positive test result, that is:
P(I|Z) = P(Z|I) / P(Z|I) *P(I) + P(Z|Ī)*P(Ī) = 0.0225
7. Probability Distributions- Random Variables
1. The height of persons in a country is a random variable of the type:

A) Discrete random variable

B) Both (a) and (b)

C) Neither (a) and (b)

D) Continuous random variable

Option D

2. When a die is rolled, what is the probability that the die will land on a number
that is smaller than 5?

A) 2/3

B) 1/3

C) 5/3

D) 4/3
Option A - When a die is tossed, there are 6 possible outcomes represented by: S = {1, 2, 3, 4, 5, 6}. Each
possible outcome is equally likely to occur. Thus, we have a uniform distribution.
This problem involves a cumulative probability. The probability that the die will land on a number smaller than
5 ,is equal to:
P (X < 5) = P (X = 1) + P (X = 2) + P (X = 3) + P (X = 4)
P (X < 5) = 1/6 + 1/6 + 1/6 + 1/6 = 2/3

3. A variable which can assume finite or countably infinite number of values is

known as -------- variable.
Discrete

4. Consider a dice with the property that that probability of a face with n dots
showing up is proportional to n. The probability of face showing 4 dots is?

A) 1/21

B) 5/42

C) 4/21

D) 1/7
Option C -Explanation: P (n) is proportional to n where n=
1,2,3,…6 is random variable.
Let P(n) = kn
P(1)+P(2)….P (6) = 1
k(1+2+3+4+5+6) = 1
k=1/21
Hence P(4) = 4k = 4/21.

5. Which of the following random variables would you expect to be discrete?

A. Number of children at a Christmas Party

B. Weights of mechanically produced items

C. Lifetimes of resistors

D. Times in seconds for a 100m sprint

Option A
8. Probability Density Normal Distribution
1. If the probability that a bomb dropped from a plane will strike the target is 60%
and if 10 bombs are dropped, find mean and variance? ------------.
It is a Binomial Distribution
Explanation - Explanation: Here, p = 60% = 0.6 and q = 1-p = 40% = 0.4 and n = 10
Therefore, mean = np = 6
Variance = npq = (10) (0.6) (0.4)
= 2.4.

2. Normal Distribution is applied for _

A. Discrete Random Variable

B. Irregular Random Variable

C. Uncertain Random Variable

D. Continuous Random Distribution

Option D

3. If we have f(x) = 2x, 0≤x≤1, then f(x) is a:

A. Probability distribution

B. Probability density function

C. Distribution function

D. Continuous random variable

Option B

4. The appropriate graph of probability density function is:

A. Polygon

B. Histogram

C. Curve

D. None of them
Option C

5. The Cumulative distribution function F(x) is equal to:

A. P (X ≤ x1)

B. P (X = x1)

C. P (X ≥ x1)

D. None of the above

Option A
9. Expected value
1. The new code 500 is for busy, affluent people who travel a lot: it can work with a
cellular phone, your home phone, office phone, second home phone, up to 5 additional
phones besides your regular one. The computer technology behind the service is
astounding- the new phone service can find you wherever you may be on the planet
at a given moment (assuming one of the phones you specify is cellular and you keep
it with you when you are not near one of your stationary telephones). What the
computer does is to first ring you up at the telephone number you specify as your
primary one (your office phone, for example). If there is no answer, the computer
switches you at your second specified phone number (say, Home).; if you do not
answer there, it will switch to your third phone (maybe the phone at close
companion’s home, or your car phone, or a portable cellular phone); and so on up to
5 allowable switches. The switches are extensive part of the service (besides
arrangements to have your cellular phone reachable overseas), and the service
provider wants to get information on these switches. From data available on an
experimental run of the 500 program, the following probability distribution is
constructed for the number of dialling switches that are necessary before a person is
reached. For X = 0, the person was reached on her or his primary phone (no switching
was necessary); when X=1, a dialling switch was necessary, and the person was found
at the secondary phone; and so on up to 5 switches. Below table gives the probability
distribution for this random variable.

x P(x)
0 0.1
1 0.2
2 0.3
3 0.2
4 0.1
5 0.1
Compute the expected number of switches and variance and standard deviation for
the number of dialling switches.
E[X] = Σ x P(x) = 2.3
V[X] = Σ (x-µ)2 P(X) = 2.01
Also V[X] = E(X)2 - [E(X)]2 = 7.3 - (2.3)2 = 2.01

x P(x) xP(x) x2P(x)

0 0.1 0 0
1 0.2 0.2 0.2
2 0.3 0.6 1.2
3 0.2 0.6 1.8
4 0.1 0.4 1.6
5 0.1 0.5 2.5
Sum 2.3 7.3

Standard Deviation is root of variance = 1.418

2. Monthly sales of a certain product, recorded to the nearest thousand, are believed
to follow the probability distribution given in table below. Suppose that company has
a fixed monthly production cost of $8000 and each item brings $2. find the expected
monthly profit from the product sales and variance.

Number of items x P(x)

5000 0.2
6000 0.3
7000 0.2
8000 0.2
9000 0.1

g(X) = 2X – 8000.

x g(x) P(x) g(x)P(x)

5000 2000 0.2 400
6000 4000 0.3 1200
7000 6000 0.2 1200
8000 8000 0.2 1600
9000 10,000 0.1 1000
E[g(x)] 5400
10. Other types of Distributions:
1. Anand was just learning electrical circuits and wanted to make some circuits in
physics lab. He found some wires and bulb holders, so he made several circuits with
12 bulb holders in each circuit. He made them in series connection, that is, if one
bulb fails, none of the bulbs will light up. He looked for a box of bulbs, but the box
said that 5% of the bulbs are defective. He randomly selects the bulbs from the box to
fill up the holders. If X = number of good bulbs in a string of 12 holders. What is the
probability that string would light up?
X is binomial with n = 12 and p = 0.05
P(X=12) = ( 12C12) * 0.95^12 * 0.05^0 = 0.95^12 = 0.54

2. Imperial Institute of Technology is coming up in Bangalore and they want to select

candidates with top 3% IQ. If three individuals are chosen at random from general
population, what is the probability that they satisfy the above requirement?
Binomial : n = 3, p = 0.03
P(X=3) = (3C3) * 0.03^3 * 0.97^0 = 0.000027

3. A Hyderabad metro rail arrives to Hitech City Station (closest station to ISB
campus) every 8 minutes. After spending some time in nearby Starbucks, you arrive
at metro station. You do not know when last metro arrived. The time until next
metro therefore is uniform random variable on the interval [0, 8].
• What is the expected time you will wait?
• What is the probability that you will wait more than 5 minutes?

Expected time: µ= 0+8/2 = 4

Probability that you will wait more than 5 minutes = 3*1/8 = 3/8

4. The proportion of people with blood type B is 0.1. In other words, roughly 10% of
the population has blood type B. Suppose we sample 120 people at random. On
average, how many would you expect to have blood type B? And what is the
Standard Deviation?
Expected Value of X = np = 12
Var(X)= σ2=np(1-p) = 10.8 and Standard Deviation = 3.3
11. Covariance and Correlation
1. As an investor, Sam tracks the performance of the P&C 200 and he wants to add
the stock of XYZ Corp. Before adding the stock to his portfolio, he wants to assess
the directional relationship between the stock and the P&C 200.

Sam does not want to increase the unsystematic risk of his portfolio. Thus, he is not
interested in owning securities in the portfolio that tend to move in the same
direction.

Calculate the covariance between the stock of ABC Corp. and S&P 500. Figures for
both ABC Corp. stock and the P&C 200 are below.

Year P&C200 ABC Corp

2015 1298 154
2016 987 86
2017 1110 147
2018 1285 182
2019 1345 211

Solution:

Year P&Y 200 XYZ Corp (y) P&Y 200 XYZ Corp Product
(x) x-Avg(X) y-Avg(Y) (x-Avg(X))(y-
Avg(Y))
2015 1298 154 93 -2 -186
2016 987 86 -218 -70 15260
2017 1110 147 -95 -9 855
2018 1285 182 80 26 2080
2019 1345 211 140 55 7700
n=5 Avg - 1205 Avg – 156 (Y) Σ (x-X) *(y-Y)
(X) = 25709

Hence Covariance = 25709/ (5-1) = 6427.25.

Both stocks are moving in same direction.
2. This scatter plot represents the high-school and freshman college GPAs of 24
students.

2.1 How would you describe the linear relationship between high-school GPA and
college GPA?

A. strong
B. weak
C. positive
D. negative
E. Choices (A) and (C)

E. Choices (A) and (C) (strong; positive)

This scatter plot displays a strong, positive linear relationship (r = 0.77) between highs school and college GPA.

2.2. How do you know this scatter plot displays a positive linear relationship
between the two variables?
The points slope upward from left to right.
That the points slope upward from left to right means that lower values on the X variable tend to have lower
values on the Y variable as well, and higher values on the X variable tend to have higher values on the Y
variable.

2.3. How do you know this scatter plot displays a relatively strong linear
relationship between the two variables?
The points cluster closely around a straight line.
This relationship isn’t perfect (if it was, all the points would lie on a perfectly straight line), but the points do
cluster closely around a line and can be covered by a dense ellipse, so the relationship is fairly strong.
2.4. If these two quantitative variables had a correlation of 1, how would the scatter
plot be different?
The points would all lie on a perfect straight-line sloping upward.
With a correlation of 1.0, all the points would lie perfectly on a straight line instead of just clustering around it.
The line would slope upward from left to right.

2.5. If these two quantitative variables had a correlation of –1, what would the scatter
plot look like?

A. The points would all lie on a straight line.

B. All the points would have to be between –1 and 0.
C. All the points would slope downward from left to right.
D. Choices (A) and (C)
E. Choices (A), (B), and (C)

(The points would all lie on a straight line; all the points would slope downward from left to right.)
The scatter plot of two variables with a correlation of –1.0 would have all the points lying perfectly on a line
sloping downward from left to right.