JK2e Ch005 SM March 2017

Chapter 05 - Discrete Probability Distributions
Chapter 5. Discrete Probability

Distributions
Solutions
1.
a. This is a valid probability distribution. It satisfies the 2 necessary
conditions: each probability falls between 0 and 1, and all
probabilities add up to 1.
b.
0.45
0.4
0.35
0.3
Probability
0.25
0.2
0.15
0.1
0.05
0
15 22 34 40
c.
P ( X < 40 )=P ( X=15 )+ P ( X =22 ) + P ( X=34 )=0.14 +0.40+0.26=0.8
d. P ( 10≤ X ≤ 30 )=P ( X =15 ) + P ( X=22 ) =0.14+0.40=0.54
e.
P ( X >20 ) =P ( X=22 ) + P ( X=34 ) + P ( X=40 )=0.40+ 0.26+0.20=0.86
2.
a.
P ( X=10 )=1−[ P ( X =−25 ) + P ( X=−15 )+ P ( X =20 ) ]=1−( 0.35+0.10+ 0.10 )=0.45
b.
5-1
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0.5
0.45
0.4
0.35
Probability
0.3
0.25
0.2
0.15
0.1
0.05
0
-25 -15 10 20
The distribution is not symmetric.
c. P ( X <0 )=P ( X=−25 )+ P ( X =−15 ) =0.35+0.10=0.45
d.
P ( X >−20 )=P ( X=−15 )+ P ( X =10 ) + P ( X=20 )=0.10+0.45+ 0.10=0.65
e.
P ( X <20 ) =P ( X=−25 )+ P ( X =−15 ) + P ( X=10 )=0.35+0.10+ 0.45=0.90
3.
a. P ( X ≤3 )=0.78
b. P ( X=3 )=P ( X ≤3 )−P ( X ≤2 )=0.78−0.52=0.26
c. P ( 2≤ X ≤ 4 )=P ( X ≤ 4 ) −P ( X ≤ 1 )=0.84−0.35=0.49
4.
a. P ( X ≤0 )=0.50
b. P ( X=50 )=P ( X ≤50 ) −P ( X ≤ 25 ) =1−0.75=0.25.
c. Yes. The distribution has a finite number of specified values, each

probability is equally likely and the distribution is symmetric.
5.
a. X ∊ {4, 3.75, 3.3, 3, 2.7, 2.3, 2, 1.7, 1.3, 1, 0.7,0}, X is discrete.
b. X ∊ [0, 4], X is continuous.
c. X ∊ {1, 2, 3, 4, 5,…}, X is discrete.
5-2
d. X ∊ [0, ∞), X is continuous.
6.
a. Assuming that Small, Medium, Large and X-Large Domino’s Pizzas
have diameters of 10, 12, 14 and 16 inches, respectively, X ∊
{10,12,14,16}, so X is discrete.
b. Assuming that the actual diameter of a Domino’s pizza may vary

between 8 and 18 inches, X ∊ [8, 18], so X is continuous.
c. X ∊ {0,1,2,3,… ), X is discrete.
d. X ∊ [0, ∞), X is continuous.
7.
a.
P ( X <5 ) =P ( X =1 ) + P ( X=2 ) + P ( X =3 ) + P ( X=4 ) =0.05+0.09+0.12+0.24=0.5
b. P ( X ≥5 )=1−P ( X <5 ) =1−0.5=0.5
c. P ( 3< X <6 )=P ( X=4 )+ P ( X =5 )=0.24+0.25=0.49
d.
0.3
0.25
0.2
Probability
0.15
0.1
0.05
0
1 2 3 4 5 6 7 8
Household Size
The distribution is fairly symmetric.
8.
Let the random variable X represent performance.
a.
5-3
0.5
0.4
0.3
Probability
0.2
0.1
0
1 2 3 4 5
Performance
The analyst has a somewhat pessimistic view based on the

positively skewed distribution. There is only a 21% chance that the
performance will be good (4) or very good (5).
b.
x P(X
≤ x)
1 (Very 0.14
poor)
2 (Poor) 0.57
3 0.79
(Neutral)
4 (Good) 0.95
5 (Very 1
Good)
c. P(X ≥ 4) = P(X = 4) + P(X = 5) = 0.16 + 0.05 = 0.21.
9.
Let the random variable X represent number of shots made.
a.
x P(X = x)
0 0.55
1 0.25
2 0.20
b. P ( X <2 )=1−P ( X=2 ) =1−0.20=0.80
c. P ( X ≥1 ) =1−P ( X=0 )=1−0.55=0.45
d. Yes, because there is only a 20% chance that the player will make
both free throw shots and a 55% chance that he will miss them
both.
5-4
10.
Let the random variable X represent confidence score.
a. The probability that the confidence score is 2 (the consumer

confidence will stay between 62 and 65) is 1−0.35−0.25=0.40.
b. The probability that the confidence score is not 1 (the consumer

confidence will not fall below 62) is 1−0.35=0.65 .
11.
Let the random variable X represent the numeric value corresponding
to the letter grade.
a.
0.5
0.4
0.3
Probability
0.2
0.1
0
0 1 2 3 4
Grade
The probability distribution is skewed to the left with 80% of the

students getting a grade of C or better.
b.
x P(X ≤ x)
0 (F) 0.10
1 (D) 0.20
2 (C) 0.60
3 (B) 0.90
4 (A) 1
c. P ( X ≥3 )=P ( X=3 )+ P ( X =4 )=0.10+ 0.30=0.40
d. 1−P ( X =0 )=1−0.10=0.90
12.
Let X be the number of students that Jane will be able to fund.
a. P ( X=1 ) =1−P ( X=0 )−P ( X =2 )=1−0.05−0. 80=0.15
5-5
b.
x P(X ≤ x)
0 0.05
1 0.20
2 1
13.
a.
P ( X=3 )=1−P ( X =4 )−P ( X =2 )−P ( X <2 )=1−0.50−0.30−0.18=0.02
b. Let the random variable X represent the number of tires a customer

buys.
x P(X ≤ x)
0 0.05
1 0.18
2 0.48
3 0.50
4 1
14. μ=5× 0.35+10 ×0.30+15 × 0.20+20 ×0.15=10.75
σ 2=(5−10.75)2 × 0.35+ ( 10−10.75 )2 ×0.30+ ( 15−10.75 )2 × 0.20+ ( 20−10.75 )2 × 0.15=28.19
σ =√ 28.19=5.31
15. μ= (−23 ) × 0.50+ (−17 ) × 0.25+ (−9 ) ×0.15+ (−3 ) × 0.10=−17.4

2 2 2 2 2
σ =(−23+ 17.4) × 0.50+ (−17+17.4 ) × 0.25+ (−9+17.4 ) × 0.15+ (−3+17.4 ) ×0.10=47.04
σ =√ 47.04=6.86
16.
a. E ( X ) =0 ×0.30+1 ×0.50+ 2× 0.15+3 ×0.05=0.95
b.
2 2 2 2 2
σ =(0−0.95) × 0.30+ ( 1−0.95 ) × 0.50+ ( 2−0.95 ) ×0.15+ (3−0.95 ) ×0.05=0.65
σ =√ 0.65=0.80
17.
5-6
a. P ( X ≥1 ) =1−P ( X=0 )=1−0.05=0.95
b. P ( X=2 )=P ( X ≥ 2 )−P ( X =3 )=0.60−0.10=0.50

P ( X=1 ) =1−P ( X=0 )−P ( X =2 )−P ( X=3 )=1−0.05−0.50−0.10=0.35
E ( X ) =0 ×0.05+1 ×0.35+ 2× 0.50+3 ×0.10=1.65
σ 2=(0−1.65)2 × 0.05+ ( 1−1.65 )2 ×0.35+ ( 2−1.65 )2 × 0.50+ ( 3−1.65 )2 ×0.10=0.53
σ =√ 0.53=0.73
18.
a. E ( X ) =−5 ×0.30+0 × 0.45+10 ×0.25=1
b. σ 2=(−5−1)2 × 0.30+ ( 0−1 )2 ×0.45+ ( 10−1 )2 × 0.25=31.5

σ =√ 31.5=5.61
19. E ( X ) =25,000× 0.10+10,000 ×0.30−5,000 ×0.60=2,500
20. E ( X ) =4 × 0.10+3 ×0.30+ 2× 0.40+1× 0.10+0 × 0.10=2.2
21.
Let X be the bonus paid out to a sales representative,
E ( X ) =20,000× 0.15+10,000 ×0.30+5,000 × 0.10=6,500 , that is, $ 6,500
Let Y be the total bonus paid out to all sales representatives,
E ( Y )=200 E ( X )=$ 1,300,000
22.
Let X be the amount spent on a warranty by each buyer of a Blu-ray
player,
E ( X ) =25× 0.20+60 × 0.05=8 , that is, $ 8
Let Y be the revenue earned by the store from selling Blu-ray

warranties,
E ( Y )=120 E ( X ) =$ 960
23.
Let X represent the repair cost if you do not buy the insurance.
Therefore, (X) = 400 × 0.08 + 800 × 0.03 + 1400 × 0.02 + 0 × 0.85 = 84. If
5-7
you are risk neutral, you should buy the insurance because the expected
cost of repair ($84) is greater than the cost of the insurance ($80). In
other words, a risk neutral person gains $4 ($84 - $80) by buying the
insurance.
24.
a.
E ( X ) =1,000× 0.25+2,000 ×0.45+5,000 × 0.20+10,000× 0.10=3,150
b. If Victor is risk neutral, he should not purchase the extended

warranty because his expected cost ($3,125) without the extended
warranty is less than the cost of the warranty ($3,400). The
decision is not clear cut if he is risk averse; the decision will depend
on his degree of risk aversion.
25.
a.
E ( X ) =15,000× 0.30+10,000 ×0.40+ 8,000× 0.30=10,900 , that is $ 10,900
b. He should invest the $10,000.
c. No, it depends on the degree of his risk aversion. In other words, his
decision depends on how much he would like to be compensated for
the risk.
26.
a. E ( R )=20 × 0.20+10 ×0.50−10 ×0.30=6
σ =√ ¿ ¿
b. E ( R )=40 ×0.20+20 × 0.50−40× 0.30=6

σ =√ ¿ ¿
c. You would choose Fund 1 because it is less risky (smaller standard

deviation) than Fund 2, with the same expected return of 6%.
27.
a.
E ( R Europe )=10 × 0.20+6 × 0.50−6 × 0.30=3.2
σ =√ ¿ ¿1.
E ( R Asia ) =18 ×0.20+10 × 0.50−12 ×0.30=5
σ =√ ¿ ¿
5-8
b. Janice will pick the investment in Asia because it has a higher

expected return.
c. Her decision would not be clear cut because the investment in

Europe is less risky, but it offers a lower expected return. Her
decision will depend on the level of her risk aversion.
28.
The portfolio consists of $20 × 100 = $2,000 invested in Stock X and
$12 × 200 = $2,400 invested in Stock Y. Total investment = $2,000 +
$2,400 = $4,400.
2000
w X= =0.45 and
4400
2400
wY= =0.55
4400
29. E ( R p ) =0.44 × 9+0.56 ×5=6.67 %
30.
200,000
a. w X = =0.40
500,000
300,000
wY= =0.60
500,000
b. E ( R p ) =0.40 ×8+ 0.60× 12=10.4 %
c.
SD ( R P ) =√ (0.40)2 (12)2 +(0.60)2(20)2 +2(0.40)(0.60)(0.40)(12)(20)=√ 213.12=14.60
31.
a. P ( Recession ) =1−[ P ( Boom ) + P ( Normal ) ]=1−0.80=0.20
b. E ( R A )=0.15 × 0.30+0.10 ×0.50+ 0.02× 0.20=0.099 ,∨9.9 %

E ( R B )=0.25 × 0.30+0.20 ×0.50+ 0.01× 0.20=0.177 ,∨17.7 %
E ( R A )=0.15 × 0.30+0.10 ×0.50+ 0.02× 0.20=0.099 ,∨9.9 %
E ( R B )=0.25 × 0.30+0.20 ×0.50+ 0.01× 0.20=0.177 ,∨17.7 %
c. E ( R p ) =0.55 ×9.9+ 0.45× 17.7=13.41 %
E ( R P )=0.55× 9.9+0.45 ×17.7=13.41 %
32.
5-9
a. E ( R p ) =0.60 ×14+ 0.4 0 ×8=11.6 %

E ( R P )=0.55× 9.9+0.45 ×17.7=13.41 %
2 2 2 2 2
σ =(0.60) (26) +( 0.40) (14) +2 ( 0.60 ) ( 0.40 ) ( 0.20 ) (26 )( 14 )=309.66
E ( R P )=0.60× ( 14 ) +0.40 × ( 8 )=11.6 %
σ 2=( 0.60 )2 (26)2 + ( 0.40 )2 (14)2 +2 ( 0.60 ) ( 0.40 )( 0.20 )( 26 )( 14 )=309.66
b. E ( R p ) =0.60 ×14+ 0.40 ×4=10 %
E ( R P )=0.55× 9.9+0.45 ×17.7=13.41 %
σ 2=(0.60)2 (26)2 +(0.40)2 (0)2 +2 ( 0.60 ) ( 0.40 ) ( 0.20 )( 26 )( 0 )=243.36
E ( R P )=0.60× ( 14 ) +0.40 × ( 4 )=10 %
2 2 2 2 2
σ =( 0.60 ) (26) + ( 0.40 ) (0) +2 ( 0.60 )( 0.40 )( 0 )( 26 ) ( 0 ) =243.36
c. The portfolios in parts a. and b. offer better expected returns than
the bond alone, but have slightly higher variances than the bond
fund with variance = (14 ¿ ¿2 =196.
5-10
33.
a. E ( R p ) =0.67 ×6 +0.33 ×8=6.66 %
E ( R P )=0.55× 9.9+0.45 ×17.7=13.41 %
E ( R P )=0.67× 6+0.33 × 8=6.66 %
SD ( R P ) =√ (0.67)2 (16)2 +(0.33)2 (20)2+ 2(0.67)(0.33)(0.38)(16)(20)=√ 212.25=14.57
b. E ( R p ) =0.67 ×6 +0.33 ×3=5.01%

E ( R P )=0.55× 9.9+0.45 ×17.7=13.41 %
E ( R P )=0.67× 6+0.33 × 3=5.01 %
SD ( R P ) =√ (0.67)2 (16)2 +(0.33)2 (0)2 +2(0.67)(0.33)(0)(16)(0)= √ 114.92=10.72
34.
5!
a. P ( X=0 )= ¿
0 !(5 !)
5!
b. P ( X=1 ) = ¿
1 !(4 !)
c. P ( X ≤1 ) =P ( X=0 ) + P ( X =1 )=0.1160+0.3124=0.4284
35.
6!
a. P( X =5)= ¿
5! (1 !)
6!
b. P( X =4 )= ¿
4 ! (2!)
c. P ( X ≥ 4 ) =P ( X=4 ) + P ( X=5 )+ P ( X=6 )=0.3284+ 0.2792+ ¿
36.
8!
a. P ( 3< X <5 )=P ( X=4 ) = ¿
4 !(4 !)
b. P ( 3< X ≤ 5 )=P ( X=4 )+ P ( X =5 )=0.1569+ ¿
c. P ( 3≤ X ≤ 5 )=P ( X =3 ) + P ( X=4 ) + P ( X =5 )=¿
5-11
37.
Let X be the number of successes.
a. Getting 4 failures is equivalent to getting 1 success;

5!
P( X =1)= ¿
1 !(4 !)
b. Expected number of successes , E ( X )=5 ( 0.30 )=1.5; “more than the

expected number of failures” is equivalent to “less than or equal to
the expected number of successes”;
P ( X ≤1.5 )=P ( X=0 )+ P ( X =1 )=¿
38.
a. P ( X ≤50 )=0.2776 ; Excel command: ‘=BINOM.DIST(50, 150, 0.36,
1)’
b. P ( X=40 )=0.0038; Excel command: ‘=BINOM.DIST(40, 150, 0.36,

0)’
c. P ( X >60 ) =1−P ( X ≤60 )=1−0.8652=0.1348;

Excel command for P ( X ≤60 ): ‘=BINOM.DIST(60, 150, 0.36, 1)’
d. P ( X ≥55 )=1−P ( X ≤54 )=1−0.5370=0.4630;Excel command for

P ( X ≤54 ) : ‘=BINOM.DIST(54, 150, 0.36, 1)’
39.
a. P ( X ≤150 )=0.2750; Excel command: ‘=BINOM.DIST(150, 200,
0.77, 1)’
b. P ( X >160 )=1−P ( X ≤160 ) =1−0.8634=0.1366 ;Excel command

for P ( X ≤160 ): ‘=BINOM.DIST(160, 200, 0.77, 1)’
c.
P ( 155≤ X ≤ 165 )=P ( X ≤165 )−P ( X ≤154 )=0.9762−0.5275=0.4487 ;
Excel commands: ‘=BINOM.DIST(165, 200, 0.77, 1)’ and:
‘=BINOM.DIST(154, 200, 0.77, 1)’
d. P ( X=160 )=0.0416 ; Excel command: ‘=BINOM.DIST(160, 200,

0.77, 0)’
40.
5-12
8!
a. P ( X=0 )= ¿
0 !(8 !)
b. P ( X ≤2 ) =P ( X=0 )+ P ( X =1 ) + P ( X=2 )=¿
c. P ( X ≥7 )=P ( X=7 )+ P ( X=8 )=¿0.0001+0.0000=0.0001

d. E ( X ) =8 ( 0.20 )=1.6 , that is ,1.6 individuals
e. σ 2=8 ( 0.20 ) ( 0.80 )=1.28

σ =√ 1.28=1.1314
41.
10 !
a. P ( X=0 )= ¿
0 !(10 !)
b. P ( X ≤ 9 )=1−P ( X =10 )=1−¿
c. E ( X ) =10 ( 0.40 )=4
42.
a.
P ( X <5 ) =P ( X ≤ 4 )=P ( X =0 ) + P ( X=1 ) + P ( X =2 ) + P ( X=3 ) + P ( X =4 )=¿
b.
P ( X <5 ) =P ( X ≤ 4 )=P ( X =0 ) + P ( X=1 ) + P ( X =2 ) + P ( X=3 ) + P ( X =4 )=¿
43.
a. E ( X ) =5,000× ( 1−0.43 ) =2,850
σ =√ 5,000(0.43)(0.57)= √1225.5=35.01
b. E ( X ) =5,000× ( 0.43 )=2150

σ =√ 5,000(0.43)(0.57)= √1225.5=35.01
6!
c. Here we use p = 1 – 0.25 = 0.75. Therefore, P ( X=6 )= ¿
6 !( 0!)
44.
6!
a. P ( X=1 ) = ¿
1 !(5 !)
5-13
b. P ( X ≥5 )=P ( X=5 )+ P ( X =6 ) =¿0.3651+0.1927=0.5578
c. P ( X <2 )=P ( X =0 ) + P ( X =1 )=¿
d. E ( X ) =6(0.76)=4.56
P ( X > 4.56 )=P ( X =5 ) + P ( X=6 )=0.5578 (from b)
45.
Probability of wearing a turban is 1 ‒ 0.25 = 0.75.
5!
a. P ( X=2 )= ¿
2 !(3!)
b. P ( X ≥2 ) =1−[ P ( X=0 ) + P ( X=1 ) ] =1−¿

1− [ 0.0010+ 0.0146 ] =0.9844
c. E ( X ) =5× 0.75=3.75
P ( X >3.75 )=P ( X =4 ) + P ( X=5 )=¿0.3955+0.2373=0.6328
d.
E ( X ) =10× 0.75=7.5 ; P ( X >7.5 ) =P ( X=8 )+ P ( X =9 ) + P ( X =10 )=¿
46.
a. P ( X >2 )=P ( X =3 ) + P ( X=4 )=¿0.25+0.0625=0.3125
b. P ( X >2 )=P ( X =3 ) + P ( X=4 )=¿0.3701+0.1575=0.5276
c. P ( X >2 )=P ( X =3 ) + P ( X=4 )=¿0.1194+ 0.0168=0.1362

47.
Let X be the number of selected men.
4!
a. P ( X=3 )= ¿
3! (1 ! )
4!
P ( X=2 )= ¿
2 ! ( 2 !)
The probabilities of finding three men and one woman, and two
men and two women are the same.
4!
b. P ( X=3 )= ¿
3! (1 ! )
5-14
4!
P ( X=2 )= ¿
2 ! ( 2 !)
It is more likely finding three men and one woman than finding two
men and two women.
48.
Let X be the number of designers who show the acceptable design by
the end of the week.
2!
a. P ( X ≥1 ) =1−P ( X=0 )=1− ¿
0 !( 2!)
The statement she made would not be correct.
3!
b. P ( X ≥1 ) =1−P ( X=0 )=1− ¿
0 !( 3!)
The statement she made would be correct.
49.
Let X be the number of the recent graduates who plan on pursuing a
graduate degree.
a. P( X ≤ 4 )=0.2173; Excel command: ‘=BINOM.DIST(4, 15, 0.40, 1)’
b. P ( X=7 )=0.1771; Excel command: ‘=BINOM.DIST(7, 15, 0.40, 0)’
c. P ( 6 ≤ X ≤ 9 )=P ( X ≤ 9 )−P ( X ≤ 5 ) =0.9662−0.4032=0.5630;

Excel commands: ‘=BINOM.DIST(9, 15, 0.40, 1)’ and
‘=BINOM.DIST(5, 15, 0.40, 1)’
50.
Let X be the number of the students who specialize in finance.
a. P( X =10)=0.1171 ; Excel command: ‘=BINOM.DIST(10, 20, 0.40,

0)’
b. P ( X ≤10 )=0.8725 ;Excel command: ‘=BINOM.DIST(10, 20, 0.40, 1)’
c. P ( X ≥15 )=1−P ( X ≤14 )=1−0.9984=0.0016 ;

Excel command for P ( X ≤14 ) is ‘=BINOM.DIST(14, 20, 0.40, 1)’
5-15
51.
Let X be the number of houses that will go up for foreclosure.
a. P ( X <2 )=P ( X ≤ 1 )=0.6226
Excel command: ‘=BINOM.DIST(1, 100, 0.0131, 1)’
b. P ( X <2 )=P ( X ≤ 1 )=0.7836

Excel command: ‘=BINOM.DIST(1, 100, 0.0087, 1)’
c. These above findings are consistent with the foreclosure rates in the
two areas.
In other words, there is 37.74% (100 ‒ 62.26) chance that at least 2
houses or more will go into foreclosure in the Washington, D.C.
region, compared to 21.64% (100 ‒ 78.36) in the nation.
52.
−1.5
e 1.51
a. P ( X=1 ) = =0.3347
1!
−1.5 2
e 1.5
b. P ( X=2 )= =0.2510
2!
c.
P ( X ≥2 ) =1−[ P ( X=0 ) + P ( X=1 ) ]=1− [ e−1.5 1.5 0

0! ]
+0.3347 =1− ( 0.2231+ 0.3347 )=¿
1−0.5578=0.4422
53.
e−4 4 4
a. P ( X=4 )= =0.1954
4!
e−4 4 2
b. P ( X=2 )= =0.1465
2!
c.
−4 0 −4 1
e 4 e 4
( ) ( ) ( )
P X ≤1 =P X=0 + P X =1 = + =0.0183+0.0732=0.0915
0! 1!
54.
8
a. μ0.5 = =4
2
5-16
b.
P ( X ≥2 ) =1−[ P ( X=0 ) + P ( X=1 ) ]=1− [ e−4 4 0 e−4 4 1

0!
+
1! ]
=1− ( 0.0183+ 0.0733 )=1−0.0916=0.9084
c. μ2=8(2)=16
−16 10
e 16
d. P ( X=10 )= =0.0341
10 !
55.
a. P ( X ≤10 )=0.1185; Excel command: ‘=POISSON.DIST(10, 15, 1)’
b. P ( X=13 )=0.0956 ; Excel command: ‘=POISSON.DIST(13, 15, 0)’
c. P ( X >15 ) =1−P ( X ≤15 ) =1−0.5681=0.4319;

Excel command for P ( X ≤15 ): ‘=POISSON.DIST(15, 15, 1)’
d. P ( 12≤ X ≤18 )=P ( X ≤18 )−P ( X ≤ 11 )=0.8195−0.1848=0.6347

Excel commands: ‘=POISSON.DIST(18, 15, 1)’ and:
‘=POISSON.DIST(11, 15, 1)’
56.
a. P ( X <14 )=P ( X ≤13 ) =0.0661; Excel command:
b. P ( X ≥20 )=1−P ( X ≤19 )=1−0.4703=0.5297 ;

Excel command for P ( X ≤19 ): ‘=POISSON.DIST(19, 20, 1)’
c. P ( X=25 )=0.0446 ; Excel command: ‘=POISSON.DIST(25, 20, 0)’
d. P ( 18≤ X ≤ 23 )=P ( X ≤ 23 )−P ( X ≤17 )=0.7875−0.2970=0.4905

Excel commands: ‘=POISSON.DIST(23, 20, 1)’ and:
57.
a. Yes, Poisson distribution can be used.
b. No, Poisson distribution cannot be used.
c. Yes, Poisson distribution can be used.
5-17
d. Yes, Poisson distribution can be used.
58.
a. Yes, variable can be assumed to be Poisson random variable.
b. No, variable cannot be assumed to be Poisson random variable.
c. Yes, variable can be assumed to be Poisson random variable.
d. No, variable cannot be assumed to be Poisson random variable.
59.
12
a. μ0.25= =3
4
P ( X <2 )=P ( X ≤ 1 )=0.1991; Excel command: POISSON.DIST(1, 3,
1)
b. P ( X >1 )=P ( X ≥ 2 )=1−P ( X ≤ 1 )=1−0.1991=0.8009
60.
a. μ60 =360 cars over a 60-minute period thus μ1=360 / 60=6 cars
e−6 6 2
over a 1-minute period; so P ( X=2 )= =0.0446
2!
b.
P ( X ≥2 ) =1−[ P ( X=0 ) + P ( X=1 ) ]=1− [ e−6 6 0 e−6 61

0!
+
1! ]
=1− ( 0.0025+ 0.0149 )=¿
1−0.0174=0.9826
c. µ10=60for a 10-minute period (6 × 10), and
e−60 6040
P ( X=40 )= =0.001
40 !
61.
e−2 22
a. P ( X=2 )= =0.2707
2!
−2 0 −2 1 −2 2
( ) ( ) ( ) ( ) e 2 e 2 e 2
b. P X ≤2 =P X=0 + P X =1 + P X=2 = + + =¿
0! 1! 2!
0.1353+0.2707+ 0.2707=0.6767
2 e−1 10
c. With µ25= =1; P ( X=0 )= =0.3679
2 0!
5-18
62.
a.
P ( X >2 )=1−[ P ( X=0 )+ P ( X =1 ) + P ( X=2 ) ]=1−

e−2 20 e−2 21 e−2 22
0!
+
1!
+
2! [=¿ ]
1−( 0.1353+ 0.2707+0.2707 ) =1−0.6767=0.3233
b. μ5=2 ( 5 ) =10 ,that is ,10 cars per 5 minute period
−10 6
e 10
P ( X=6 )= =0.0631
6!
c. μ180 =2(3)(60)=360
63.
400
a. μ60= =25; 25 calls per 60-minute period
16
25
μ30 = =12.5 ;12.5 calls per 30-minute period
2
25
μ15 = =6.25 ;6.25 calls per 15-minute period
4
−6.25 6
e 6.25
b. P ( X=6 )= =0.1598
6!
−6.25
e 6.25 0
c. P ( X=0 )= =0.0019
0!
d.
P ( X ≥2 ) =1−[ P ( X=0 ) + P ( X=1 ) ]=1−( 0.0019+0.0121 )=1−0.014=0.986
64.
a. P ( X ≤ 425 )=0.8980 ; Excel command: ‘=POISSON.DIST(425, 400,
1)’
b. P ( X ≥375 )=1−P ( X ≤374 )=1−0.1002=0.8998 ;Excel command

for P ( X ≤374 ) is: ‘=POISSON.DIST(374, 400, 1)’
65.
a. μmonth =4 / 12=1/3
σ =√ 1/3=0.5774
5-19
−1/ 3 0
e (1/3)
b. P ( X=0 )= =0.7165
0!
c. P ( X ≥1 ) =1−P ( X=0 )=1−0.7165=0.2835
66.
3,339
a. μ0.25= =834.75
4
P ( X >1000 )=1−P ( X ≤1000 ) =1−0.9999=0.0001; Excel
command for P ( X ≤1000 ) is: ‘=POISSON.DIST(1000, 834.75, 1)’
b. P ( X <500 )=P ( X ≤ 499 ) =0.9999 ; Excel command:

‘=POISSON.DIST(499, 834.75, 1)’
67.
24584
a. μ1= =94.55
260
b. P ( X=100 )=0.0342 ; Excel command: POISSON.DIST(100, 94.55, 0)
c. P ( X ≤100 )=0.7332 ;Excel command: POISSON.DIST(100, 94.55, 1)
68.
a.
3! ( 25−3 ) !
×
0! ( 3−0 ) ! ( 4−0 ) ! ( 25−3−4+0 ) ! (1)(7315)
P ( X=0 )= = =0.5783
25 ! 12,650
4 ! ( 25−4 ) !
b.
3! ( 25−3 ) !
×
1! ( 3−1 ) ! ( 4−1 ) ! ( 25−3−4+1 ) ! (3)(1540)
P ( X=1 ) = = =0.3652
25 ! 12,650
4 ! ( 25−4 ) !
c. P ( X ≤1 ) =P ( X=0 ) + P ( X =1 )=0.5783+0.3652=0.9435
69.
5-20
a.
4! ( 15−4 ) ! 4! 11!
× ×
1! ( 4−1 ) ! ( 3−1 ) ! ( 15−4−3+1 ) ! 1 ! 3! 2 ! 9 ! (4 )(55)
P ( X=1 ) = = = =0.4835
15 ! 15 ! 455
3 ! ( 15−3 ) ! 3! 12!
4! ( 15−4 ) !
×
2 ! ( 4−2 ) ! ( 3−2 ) ! (15−4−3+ 2 ) ! (6)(11)
b. P ( X=2 )= = =0.1451
15 ! 455
3 ! ( 15−3 ) !
c.
[ ]
4! ( 15−4 ) !
×
0 ! ( 4−0 ) ! ( 3−0 ) ! ( 15−4−3+0 ) !
P ( X ≥2 ) =1−[ P ( X=0 ) + P ( X=1 ) ]=1− +0.4835 =¿
15 !
3 ! ( 15−3 ) !
1− [ (1)(165)
455 ]
+ 0.4835 =1−( 0.3626+0.4835 )=1−0.8461=0.1539
2! ( 12−2 ) !
×
0! ( 2−0 ) ! ( 3−0 ) ! ( 12−2−3+0 ) ! ( 1 ) ( 120 )
70. P ( X=0 )= = =0.5455
12 ! 220
3 ! ( 12−3 ) !
μ=3 ( )
2
12
=0.50
√
σ = 3 ( )( 1− )(
2
12 12−1 )
2 12−3
12
=√ 0.3409=0.5839
71.
a. P ( X=2 )=0.3641; Excel command: ‘=HYPGEOM.DIST(2, 5, 20, 50,
0)’
b. P ( X ≥2 ) =1−[ P ( X=0 ) + P ( X=1 ) ] =1−( 0.0673+0.2587 ) =0.6740 ;

Excel commands: ‘=HYPGEOM.DIST(0, 5, 20, 50, 0)’ and:
‘=HYPGEOM.DIST(1, 5, 20, 50, 0)’
c. P ( X ≤3 )=0.9241; Excel command: ‘=HYPGEOM.DIST(3, 5, 20, 50,

1)’
5-21
72. P ( X ≥8 )=1−P ( X ≤ 7 )=1−0.9223=0.0777Excel command for

P ( X ≤7 ) : ‘=HYPGEOM.DIST(7, 20, 25, 100, 1)’
μ=20 ( )
25
100
=5
√ 100 100 )( 100−1 )=√ 3.0303=1.7408

σ = 20 (
25
)( 1−
25 100−20
5! 5!
×
2 ! ( 5−2 ) ! 0! ( 5−0 ) ! 10
73. P ( X=2 )= = =0.2222
10! 45
2! ( 10−2 ) !
5! 5!
×
2! ( 5−2 ) ! 0 ! ( 5−0 ) !
P ( X ≥1 ) =1−P ( X=0 )=1− =1−0.2222=0.7778
10 !
2 ! ( 10−2 ) !
74.
8! 32!
×
0! ( 8−0 ) ! 3! (32−3 ) ! 4960
a. P ( X=0 )= = =0.5020
40 ! 9880
3! ( 40−3 ) !
b. P ( X ≥1 ) =1−P ( X=0 )=1−0.5020=0.4980
75.
a.
10 ! (15−10 ) !
×
3 ! ( 10−3 ) ! ( 3−3 ) ! ( 15−10−3+ 3 ) ! (120)(1)
P ( X=3 )= = =0.2637
15 ! 455
3 ! ( 15−3 ) !
b.
[
10 ! ( 15−10 ) ! 10! (1
× ×
0 ! ( 10−0 ) ! ( 3−0 ) ! ( 15−10−3+0 ) ! 1! ( 10−1 ) ! ( 3−1 ) ! (
P ( X ≥2 ) =1−[ P ( X=0 ) + P ( X=1 ) ]=1− +
15 ! 15 !
3 ! ( 15−3 ) ! 3 ! ( 15−3
76.
5-22
a.
12 ! ( 18−12 ) !
×
3 ! ( 12−3 ) ! ( 3−3 ) ! ( 18−12−3+3 ) ! (220)(1)
P ( X=3 )= = =0.2696
18! 816
3! ( 18−3 ) !
b.
[
12 ! ( 18−12 ) ! 12 ! (1
× ×
0 ! ( 12−0 ) ! ( 3−0 ) ! (18−12−3+ 0 ) ! 1 ! ( 12−1 ) ! ( 3−1 ) ! ( 1
P ( X ≥2 ) =1−[ P ( X=0 ) + P ( X=1 ) ]=1− +
18 ! 18 !
3 ! ( 18−3 ) ! 3 ! ( 18−3
77.
a.
12 ! ( 20−12 ) !
×
2 ! ( 12−2 ) ! ( 2−2 ) ! ( 20−12−2+2 ) ! (66)(1)
P ( X=2 )= = =0.3474
20 ! 190
2 ! ( 20−2 ) !
12! ( 20−12 ) !
×
0! ( 12−0 ) ! ( 2−0 ) ! ( 20−12−2+ 0 ) ! ( 1 ) ( 28 )
b. P ( X=0 )= = =0.1474
20 ! 190
2 ! ( 20−2 ) !
4! ( 20−4 ) !
×
2 ! ( 4−2 ) ! ( 2−2 ) ! ( 20−4−2+2 ) ! (6)(1)
78. P ( X=2 )= = =0.0316
20 ! 190
2 ! ( 20−2 ) !
79.
a. μ=10 ( )
24
40
=6 men∧, therefore ,10−6=4 women
b. P ( X ≥5 )=1−P ( X ≤ 4 )=1−0.6488=0.3512 ;
Excel command for P ( X ≤ 4 ) : ‘=HYPGEOM.DIST(0, 10, 16, 40, 1)’
80.
a. P ( X=2 )=0.0495; Excel command: ‘=HYPGEOM.DIST(2, 5, 5, 59,
0)’
5-23
b. P ( X=5 )=0.0000002; Excel command: ‘=HYPGEOM.DIST(5, 5, 5,

59, 0)’
c. P ( X=1 ) =0.0256; Excel command: ‘=HYPGEOM.DIST(1, 1, 1, 39,

0)’
d. Since the two stages are independent, we multiply the above

probabilities to derive the probability of winning the jackpot:
0.0000002 × 0.0256 = 0.00000000512
81. E ( X ) =( 5 mil ) × 0.10+ ( 2 mil ) × 0.40+ (−4 mil ) × 0.50=−$ 700,000
82.
a. E ( R )= (−15 ) (0.25)+ ( 5 ) (0.35)+ ( 10 ) (0.40)=2
b. σ 2=(−15−2 )2 (0.25)+ ( 5−2 )2 (0.35)+ ( 10−2 )2 (0.40)=101

σ =√ 101=10.05
83.
a. E ( R X )=( 30 )( 0.20)+ ( 10 ) (0.50)+ (−30 ) (0.30)=2 %
2 2 2 2
σ =( 30−2 ) (0.20)+ ( 10−2 ) (0.50)+ (−30−2 ) (0.30)=496
σ =√ 496=22.27
E ( RY )= (10 ) (0.20)+ ( 20 ) (0.50)+ ( 5 ) (0.30)=13.5 %
2 2 2 2
σ =( 10−13.5 ) ( 0.20)+ ( 20−13.5 ) (0.50)+ ( 5−13.5 ) (0.30)=45.25
σ =√ 45.25=6.73
88
b. ρ AB = =0.5871
22.27 × 6.73
84.
a. E ( RY )=0.35× ( 10 ) +0.65 ×( 5)=6.75
E ( R P )=0.35× ( 10 ) +0.65 × ( 5 )=6.75
b. σ 2=( 0.35 )2 (98)+ ( 0.65 )2 (26)+( 2)(0.35)(0.65)(22)=33
σ =√ 33=5.74 σ =√ ( 0.35 ) ( 98 ) +¿ ¿
2
85.
a. P ( X=3 )=0.60−0.15=0.45
5-24
b.
P ( X ≥2 ) =1−P ( X <2 )=1−[ P ( X=0 )+ P ( X =1 ) ] =1− [ 0.05+ 0.05 }=0.90
c. E ( X ) =4 ( 0.15 )+ 3 ( 0.45 )+ 2 ( 1−0.60−0.10 )+1 ( 0.05 ) +0 ( 0.05 )=2.6 ;

σ 2=( 4−2.6 )2 ( 0.15 ) + ( 3−2.6 )2 ( 0.45 ) + ( 2−2.6 )2 ( 0.30 ) + ( 1−2.6 )2 ( 0.05 )+ ( 0−2.6 )2(0.05)=0.94
σ =√ 0.94=0.97
86.
Let X be the number of tires a customer buys.
a. P ( X=1 ) =P ( X <2 )−P ( X =0 )=0.18−0.05=0.13

P ( X=3 )=1−P ( X =4 )−P ( X =2 )−P ( X <2 )=1−0.50−0.30−0.18=0.02
E ( X ) =4 ( 0.50 )+ 3 ( 0.02 )+2 ( 0.30 ) +1 ( 0.13 ) +0(0.05)=2.79
2 2 2 2
σ ¿ ( 4−2.79 ) ( 0.50 ) + ( 3−2.79 ) ( 0.02 )+ ( 2−2.79 ) ( 0.30 )+
( 1−2.79 )2 ( 0.13 ) + ( 0−2.79 )2 (0.05)=1.7259
σ =√ 1.7259=1.3137
b. E ( R )=15 E ( X )=15(2.79)=41.85
E ( 120 R )=120 E ( R )=120(41.85)=5022
87.
a.
x P(X = x)
200 0.35
20 0.60
−¿ 6 0.05
00
b. E ( X ) =200(0.35)+20(0.60)+ (−600 ) (0.05)=52

E ( 200 X )=200 E ( X )=200(52)=10,400
88.
4!
a. P ( X=4 )= ¿
( 4 ! )( 0 ! )
b. P ( X <2 )=P ( X =0 ) + P ( X =1 )=¿0.0983+0.3091=0.4074
c. E ( X ) =4 (0.44)=1.76
σ 2=4 ( 0.44 ) ( 0.56 )=0.9856
σ =√ 0.9856=0.9928
5-25
89.
5!
a. P ( X=5 )= ¿
( 5! )( 0 ! )
5!
b. P ( X=0 )= ¿
( 0 ! ) ( 5! )
90.
4!
a. P ( X=2 )= ¿
(2 ! )( 2 ! )
4!
b. P ( X=4 )= ¿
( 4 ! )( 0 ! )
c. E ( X ) =100(0.51)=51
2
σ =100 ( 0.51 )( 0.49 )=24.99
σ =√ 24.99=4.999
91.
a. P ( X=15 )=0.0481 ; Excel command: ‘=BINOM.DIST(15, 100, 0.20,
0)’
b. P ( X >20 ) =1−P ( X ≤20 )=1−0.5595=0.4405

Excel command for P ( X ≤20 ): ‘=BINOM.DIST(20, 100, 0.20, 1)’
c. P ( X ≥25 )=1−P ( X ≤ 24 )=1−0.8686=0.1314

Excel command for P ( X ≤24 ) is BINOM.DIST(24, 100, 0.20, 1)’
92.
a. P ( X=10 )=0.0272 ;Excel command: ‘=BINOM.DIST(10, 30, 0.19,
0)’
b. P ( 10≤ X ≤ 20 )=P ( X ≤ 20 )−P ( X ≤ 9 )=1−0.9549=0.0451

Excel commands: ‘=BINOM.DIST(20, 30, 0.19, 1)’ and:
‘=BINOM.DIST(9, 30, 0.19, 1)’
c. P ( X ≤8 )=0.8996 ; Excel command: ‘=BINOM.DIST(8, 30, 0.19, 1)’
93.
5-26
10
a. μ30 secs = =5
2
−5 4
e 5
( )
b. P X=4 = =0.1755
4!
c. P ( X=0 )= [ ]
e−5 50
0!
=0.0067
d. P ( X ≥1 ) =1−P ( X=0 )=1−0.0067=0.9933
94.
a. P ( X ≥5 )=1−P ( X ≤ 4 )=1−0.4405=0.5595; Excel command for
P ( X ≤ 4 ) : ‘=POISSON.DIST(4, 5, 1)’
b. P ( X <5 ) =P ( X ≤ 4 )=0.4405
95.
a. P ( X <8 )=P ( X ≤ 7 ) =0.0895 ; Excel command for P ( X ≤7 ):
12
b. μ1 mile= =1.2
10
P ( X >2 )=P ( X ≥ 3 )=1−P ( X ≤ 2 )=1−0.8794=0.1206 ;
Excel command for P ( X ≤2 ) : ‘=POISSON.DIST(2, 1.2, 1)’
96.
Let X be the number of selected spades
13 !
∗(52−13) !
3 ! ( 13−3 ! )
a. (3−3)! ( 52−13−3+3 ) ! 286
P ( X=3 )= = =0.0129
52 ! 22100
3 ! ( 52−3 ) !
b.
13! 13! 13
∗(52−13)! ∗(52−13)!
0 ! ( 13−0 ! ) 1! ( 13−1! ) 2 ! ( 13
(3−0)! (52−13−3+ 0 ) ! (3−1)! (52−13−3+1 ) ! (3−2)
P ( X ≤2 ) =P ( X=0 )+ P ( X =1 ) + P ( X=2 )= + +
52! 52!
3! (52−3 ) ! 3! (52−3 ) !
5-27
c. Since the events of selecting three spades and selecting three hearts are exclusive
and equally likely, the probability of their union is 2 P ( X=3 ) =2(0.0129)=0.0258 .
97.
a.
[ ]
3! ( 20−3 ) !
×
0 ! ( 3−0 ) ! ( 4−0 ) ! ( 20−3−4+ 0 ) !
P ( X ≥1 ) =1−P ( X=0 )=1− =1−0.4912=0.5088
20 !
4 ! (20−4 ) !
b.
[ ]
3! ( 20−3 ) !
×
0 ! ( 3−0 ) ! ( 6−0 ) ! ( 20−3−6+ 0 ) !
P ( X ≥1 ) =1−P ( X=0 )=1− =1−0.3193=0.6807
20 !
6 ! ( 20−6 ) !
98.
a. P ( X=6 )=0.0115 ; Excel command: ‘=HYPGEOM.DIST(6, 10, 20, 80,
0)’
b. P ( X ≥5 )=1−P ( X ≤ 4 )=1−0.9353=0.0647 ;
Excel command for P ( X ≤ 4 ) : ‘=HYPGEOM.DIST(4, 10, 20, 80, 1)’
c. P ( X ≤2 ) =0.5206; Excel command: ‘=HYPGEOM.DIST(2, 10, 20, 80,

1)’
d. E ( X ) =10 ( 2080 )=2.5

Case Study 5.1:
1. E(X) = 0(0.76) + 80(0.13) + 320(0.08) + 500(0.03) = $51
2. Expected Gain = $51 −¿ $74 = −¿ $23 (loss)
3. A risk neutral consumer will not purchase this extended warranty

because the expected repair cost of $51 is less than the $74 cost of the
extended warranty; there is an expected loss of $23. The decision is not
clear cut if the consumer is risk averse; the decision will depend on his
degree of the consumer's risk aversion.
Case Study 5.2:
5-28
1. For 2007, P ( X ≥1 ) =1−P ( X=0 )=1−¿
2. For 2001, P ( X ≥1 ) =1−P ( X=0 )=1−¿
3. For 1997, P ( X ≥1 ) =1−P ( X=0 )=1−¿
4. In a sample of ten teens, the above probabilities suggest that at least

92.67 % were smokers in 1997 versus 85.57% in 2001 and 58.87 % in
2007. These results suggest that the teen smoking rate has been
consistently declining in New York City.
Case Study 5.3:
1000
1. μday = =2.74 ; E ( X )=μ d ay =2.74 .
365
2. Using Excel POISSON.DIST function with CUMULATIVE = 0, one

obtains:
x P(X=x
)
0 0.0646
1 0.1769
2 0.2424
3 0.2214
4 0.1516
5 0.0831
6 0.0379
7 0.0149
8 0.0051
9 0.0015
1 0.0004
0
Graph of the distribution:
5-29
0.3
0.2
Probability
0.1
0
0 1 2 3 4 5 6 7 8 9 10
x
This is a typical positively skewed distribution.
5-30

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JK2e Ch005 SM March 2017

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Chapter 05 - Discrete Probability Distributions

Chapter 5. Discrete Probability

d. P ( 10≤ X ≤ 30 )=P ( X =15 ) + P ( X=22 ) =0.14+0.40=0.54

The distribution is not symmetric.

c. P ( X <0 )=P ( X=−25 )+ P ( X =−15 ) =0.35+0.10=0.45

b. P ( X=3 )=P ( X ≤3 )−P ( X ≤2 )=0.78−0.52=0.26

b. P ( X=50 )=P ( X ≤50 ) −P ( X ≤ 25 ) =1−0.75=0.25.

c. Yes. The distribution has a finite number of specified values, each

b. X ∊ [0, 4], X is continuous.

c. X ∊ {1, 2, 3, 4, 5,…}, X is discrete.

d. X ∊ [0, ∞), X is continuous.

b. Assuming that the actual diameter of a Domino’s pizza may vary

d. X ∊ [0, ∞), X is continuous.

b. P ( X ≥5 )=1−P ( X <5 ) =1−0.5=0.5

c. P ( 3< X <6 )=P ( X=4 )+ P ( X =5 )=0.24+0.25=0.49

The distribution is fairly symmetric.

The analyst has a somewhat pessimistic view based on the

c. P(X ≥ 4) = P(X = 4) + P(X = 5) = 0.16 + 0.05 = 0.21.

b. P ( X <2 )=1−P ( X=2 ) =1−0.20=0.80

c. P ( X ≥1 ) =1−P ( X=0 )=1−0.55=0.45

a. The probability that the confidence score is 2 (the consumer

b. The probability that the confidence score is not 1 (the consumer

The probability distribution is skewed to the left with 80% of the

c. P ( X ≥3 )=P ( X=3 )+ P ( X =4 )=0.10+ 0.30=0.40

a. P ( X=1 ) =1−P ( X=0 )−P ( X =2 )=1−0.05−0. 80=0.15

b. Let the random variable X represent the number of tires a customer

14. μ=5× 0.35+10 ×0.30+15 × 0.20+20 ×0.15=10.75

σ 2=(5−10.75)2 × 0.35+ ( 10−10.75 )2 ×0.30+ ( 15−10.75 )2 × 0.20+ ( 20−10.75 )2 × 0.15=28.19

15. μ= (−23 ) × 0.50+ (−17 ) × 0.25+ (−9 ) ×0.15+ (−3 ) × 0.10=−17.4

a. P ( X ≥1 ) =1−P ( X=0 )=1−0.05=0.95

b. P ( X=2 )=P ( X ≥ 2 )−P ( X =3 )=0.60−0.10=0.50

b. σ 2=(−5−1)2 × 0.30+ ( 0−1 )2 ×0.45+ ( 10−1 )2 × 0.25=31.5

19. E ( X ) =25,000× 0.10+10,000 ×0.30−5,000 ×0.60=2,500

20. E ( X ) =4 × 0.10+3 ×0.30+ 2× 0.40+1× 0.10+0 × 0.10=2.2

E ( X ) =20,000× 0.15+10,000 ×0.30+5,000 × 0.10=6,500 , that is, $ 6,500

Let Y be the total bonus paid out to all sales representatives,

E ( Y )=200 E ( X )=$ 1,300,000

E ( X ) =25× 0.20+60 × 0.05=8 , that is, $ 8

Let Y be the revenue earned by the store from selling Blu-ray

b. If Victor is risk neutral, he should not purchase the extended

b. He should invest the $10,000.

b. E ( R )=40 ×0.20+20 × 0.50−40× 0.30=6

c. You would choose Fund 1 because it is less risky (smaller standard

b. Janice will pick the investment in Asia because it has a higher

c. Her decision would not be clear cut because the investment in

29. E ( R p ) =0.44 × 9+0.56 ×5=6.67 %

b. E ( R p ) =0.40 ×8+ 0.60× 12=10.4 %

b. E ( R A )=0.15 × 0.30+0.10 ×0.50+ 0.02× 0.20=0.099 ,∨9.9 %

a. E ( R p ) =0.60 ×14+ 0.4 0 ×8=11.6 %

b. E ( R p ) =0.67 ×6 +0.33 ×3=5.01%

c. P ( X ≥ 4 ) =P ( X=4 ) + P ( X=5 )+ P ( X=6 )=0.3284+ 0.2792+ ¿

b. P ( 3< X ≤ 5 )=P ( X=4 )+ P ( X =5 )=0.1569+ ¿

c. P ( 3≤ X ≤ 5 )=P ( X =3 ) + P ( X=4 ) + P ( X =5 )=¿

a. Getting 4 failures is equivalent to getting 1 success;

b. Expected number of successes , E ( X )=5 ( 0.30 )=1.5; “more than the

b. P ( X=40 )=0.0038; Excel command: ‘=BINOM.DIST(40, 150, 0.36,

c. P ( X >60 ) =1−P ( X ≤60 )=1−0.8652=0.1348;

d. P ( X ≥55 )=1−P ( X ≤54 )=1−0.5370=0.4630;Excel command for

b. P ( X >160 )=1−P ( X ≤160 ) =1−0.8634=0.1366 ;Excel command

d. P ( X=160 )=0.0416 ; Excel command: ‘=BINOM.DIST(160, 200,

b. P ( X ≤2 ) =P ( X=0 )+ P ( X =1 ) + P ( X=2 )=¿

c. P ( X ≥7 )=P ( X=7 )+ P ( X=8 )=¿0.0001+0.0000=0.0001

e. σ 2=8 ( 0.20 ) ( 0.80 )=1.28