A professor rolls a fair, six-sided die.

Using the classical method of probability, what is the probability that at least three spots
Show Formula
Favourable 4
Total 6
Probability= 4/6= 0.6667
y that at least three spots will be showing up on the die?
If P(A) = .62, P(B) = .47, and P(AꓴB) = .88, then P(A∩B) =
show formula

P(A∩B) = P(A) + P(B) - P(AUB)

= 0.62+0.47-0.88
= 0.21
If P(A) = .38, P(B) = .83, and P(A∩B) = .24, then P(AꓴB) =

P(AUB) = P(A) + P(B) - P(A∩B)

= 0.38+0.83-0.24
= 0.97
As a company manager for Claimstat Corporation there is a .40 probability that you will be promoted this year. There
is a .72 probability that you will get a promotion or a raise. The probability of getting a promotion and a raise is .25.

a. If you get a promotion, what is the probability that you will also get a raise? 3pts
Formula must be shown
P(R/P) = P(R∩P)/P(P)
0.25/0.4 = 0.625
b. What is the probability of getting a raise? HINT: you will need to rearrange the addition/union rule formula to solve for P(R)
Formula must be shown
P(R) = P(RUP)-P(P)+P(R∩P)
0.72-0.4+0.25 = 0.57
c. Are getting a raise and being promoted independent events? Explain using probabilities. 2pts
Formula must be shown
P(R∩P)= P(R) P(P)
0.25 = 0.57 x 0.4 Not equal. So P and R are not independent
d. Are these two events mutually exclusive? Explain using probabilities. 2pts
No. Because P(R∩P) is not zero.
moted this year. There
on and a raise is .25.

n rule formula to solve for P(R). 3pts

 A corporation has 15,000 employees. 62% of the employees are male. 23% of the employees earn more than $60,000 a year
employees are male and earn more than $60,000 a year.

a. If an employee is taken at random, what is the probability that the employee is male? 1pt
P(M) = 0.62

b. If an employee is taken at random, what is the probability that the employees earns more than $60,000 a year? 1pt

P(S) = 0.23

c. If an employee is taken at random, what is the probability that the employee is male and earns more than $60,000 a year? 1

P(MnS)= 0.18

d. The employee taken at random turns out to be male. Compute the probability that he earns more than $60,000 a year. HIN
Formula must be shown
P(S/M) = P(SnM) / P(M)
= 0.18 / 0.62 = 0.2903
f. Are being male and earning more than $60,000 a year independent? 1pt
No because P(MnS) is not equal to P(M) x P(S)
 arn more than $60,000 a year. 18% of the
ar.

P(M) 0.62
P(S) 0.23
P(MnS) 0.18

n $60,000 a year? 1pt

s more than $60,000 a year? 1pt

more than $60,000 a year. HINT: probabiliy of >$60k, given being a male. 3pts
 Through a telephone survey, a low-interest bank credit card is offered to
400 households. The responses are as follows:

Income ≤ Income >

total
50,000 50,000
Accept
40 40 80
Offer
Reject
210 210 420
Offer
total 250 250 500

a. Develop a joint probability table and show the marginal probabilties. 3pts
Formulas must be shown
Income ≤ Income >
50,000 50,000 total
Accept
0.08 0.08
Offer 0.16
Reject
0.42 0.42
Offer 0.84
total 0.5 0.5

b. What is the probability of a household whose income exceeds $50,000 and who rejects the offer? 3pts

0.42

c. If income is ≤ $50,000 (B), what is the probability the offer will be accepted (A)? 3pts
Formulas must be shown
P(A/B) = P(AnB)/P(B)
= 0.08/0.16 = 0.5
d. If the offer is accepted (B), what is the probability that income exceeds $50,000 (A)? 3pts
Formulas must be shown

P(A/B) = P(AnB)/P(B)
= 0.08/0.16 = 0.5
 Through a telephone survey, a low-interest bank credit card is offered to
400 households. The responses are as follows:

Income ≤ Income >

total
50,000 50,000
Accept
40 30 70
Offer
Reject
210 120 330
Offer
total 250 150 400

a. Develop a joint probability table and show the marginal probabilties. 3pts
Formulas must be shown
Income ≤ Income >
50,000 50,000 total
(I1) (I2)
Accept
0.1 0.075 0.175
Offer (A)
Reject
0.525 0.3 0.825
Offer (B)
total 0.625 0.375 1

b. What is the probability of a household whose income exceeds $50,000 and who rejects the offer? 3pts

P(I2 and R) = P(R and I2) = 0.3

c. If income is ≤ $50,000, what is the probability the offer will be accepted? 3pts
Formulas must be shown

P(A | I1) = P(A and I1) / P(I1) = 0.1 / 0.625 ≈ 0.16

d. If the offer is accepted, what is the probability that income exceeds $50,000? 3pts
Formulas must be shown

P(I2 | A) = P(A and I2) / P(A) = 0.075 / 0.175 ≈ 0.43

 The random variable x is known to be uniformly distributed between 70 and 90. Calculate the
probability of x having a value between 80 and 90. 3pts

Formula must be shown

P =( b1-a1)/(b-a)
= (90 - 80) / (90-70) = 0.5
Assume z is a standard normal random variable. Calculate the below.

a. P(1.05 < z < 2.13) 3pts

Formula must be shown
P(1.05 < z < 2.13) = P(z < 2.13) - P(z < 1.05)
0.130273
b. P(z > .85) 3pts
Formula must be shown

b. P(z > .85) = 1- P(z < 0.85)

= 0.197663
 A local bank has determined the daily balances of the checking accounts of its customers are
normally distributed with an average of $280 and a standard deviation of $20.

a. What percentage of its customers has daily balances of more than $275? 3pts
Formula must be shown
P(X > 275) = P(z > -0.25) = 1 - P(z < -0.25) = 0.598706
b. What percentage of its customers has daily balances less than $243? 2pt
Formula must be shown
P(X < 243) = P(z > -1.85) = 0.032157
c. What percentage of customers' balances is between $241 and $301.60? 3pts
Formula must be shown

P(241 < X < 301.60) = P(-1.95 < z < 1.08) = P(z<1.08) - P(z < -1.95)
= 0.834341
 The price of a stock is uniformly distributed between $30 and $40.

a. What is the probability that the stock price will be more than $37? 2pt
Formula must be shown
P =( b1-a1)/(b-a)
= (40-37) / (40 - 30) = 0.30

b. What is the probability that the stock price will be less than $32? 1pt
Formula must be shown P =( b1-a1)/(b-a)
= (32-30) / (40 - 30) = 0.20
c. Determine the expected price of the stock. 2pt
Formula must be shown

Mean = (a+b) / 2
= (30+40) / 2
= 35