Class Handout 3

Problem 1. The percent frequency distributions of job satisfaction scores for a sample of
information systems (IS) senior executives and middle managers are as follows. The scores range
from a low of 1 (very dissatisfied) to a high of 5 (very satisfied).

Job Satisfaction IS Senior Executives IS Middle Managers

Score (%) (%)
1 5 4
2 9 10
3 3 12
4 42 46
5 41 28

a. Develop a probability distribution for the job satisfaction score of a senior executive.
b. Develop a probability distribution for the job satisfaction score of a middle manager.
c. What is the probability that a senior executive will report a job satisfaction score of 4 or
5?
d. What is the probability a middle manager is very satisfied?
e. Compare the overall job satisfaction of senior executives and middle managers.

Problem 2. The American Housing Survey reported the following data on the number of times
that owner-occupied and renter-occupied units had a water supply stoppage lasting 6 or more
hours in the past 3 months.

Number of Times Number of Units (1000s)

Owner Occupied Renter Occupied
0 439 394
1 1100 760
2 249 221
3 98 92
4 times or more 120 111

a. Define a random variable x = number of times that owner-occupied units had a water
supply stoppage lasting 6 or more hours in the past 3 months and develop a probability
distribution for the random variable. (Let x = 4 represent 4 or more times.)
b. Compute the expected value and variance for x
c. Define a random variable y = number of times that renter-occupied units had a water
supply stoppage lasting 6 or more hours in the past 3 months and develop a probability
distribution for the random variable. (Let y = 4 represent 4 or more times.)
d. Compute the expected value and variance for y.
 e. What observations can you make from a comparison of the number of water supply
stoppage reported by owner occupied units versus renter-occupied units?

Problem 3. Phone calls arrive at the rate of 48 per hour at the desk for regional airways
a. compute the probability of receiving three calls in a 5-minute interval of time
b. compute the probability of receiving exactly 10 calls in 15 minutes
c. Suppose no calls are currently on hold. If the agent takes 5 minutes to complete the
current call, how many callers do you expect to be waiting by that time? What is the
probability that none will be waiting?
d. if no calls are currently being processed what is the probability that the agent can take 3
minutes for personal time without being interrupted by a call?
Problem 4. A recent survey showed that a majority of Americans plan on doing their holiday
shopping online because they don’t want to spend money on gas driving from store to store.
Suppose we have a group of 10 shoppers; 7 prefer to do their holiday shopping online and 3
prefer to do their holiday shopping in stores. A random sample of 3 of these 10 shoppers is
selected for a more in-depth study of how the economy has impacted their shopping behavior.
a. What is the probability that exactly 2 prefer shopping online?
b. What is the probability that the majority (either 2 or 3) prefer shopping online?