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3-25In 2003, the average stock price for

companies making up the S&P 500 was $30 per share, with a standard deviation of $8.20. Assume stock prices follow a normal distribution

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3-25(a) What is the probability the company will

have a stock price of at least $40?

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3-25(a)

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3-25(modified b) What is the probability the

company will have a stock price no higher than $10?

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3-25(modified b)

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3-25(c) How high does the stock price need to be

(per share) to put a company in the top 10%?

This question is giving you a probability and asking you to solve for x (stock price / share)

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3-25(c)

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3-25(c)

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3-25(c)

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3-17Airline passengers arrive randomly and

independently at the passenger screening facility in a major airport. The mean arrival rate is 11 passengers / min

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3-17(a) What is the probability of no passengers

arriving in a 1 minute time period?

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3-17(a) What is the probability of no passengers

arriving in a 1 minute time period?

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3-17(b) What is the probability of 3 or fewer

passengers arriving in a 1 minute time period?

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3-17(b)

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3-17(c) What is the probability of no passengers

arriving in a 20 second time period?

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3-17(d) What is the probability of at least one

passenger arriving in a 20 second time period?

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3-11A survey on British Social Attitudes asked

respondents if they had ever boycotted goods for ethical reasons. The survey found that 29% of the respondents had boycotted goods for ethical reasons

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3-11(a) In a sample of six citizens, what is the

probability that two have ever boycotted goods for ethical reasons?

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3-11(a)

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3-11(b) In a sample of six citizens, what is the

probability that AT LEAST two have ever boycotted goods for ethical reasons?

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3-11(b)

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3-11(b)

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3-11(c) In a sample of 11 citizens, what is the

probability that none (zero) have ever boycotted goods for ethical reasons?

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3-05

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Distribution of Paper Currency Prizes

Bill Denomination Number of Bills

$1 570

$5 210

$10 140

$20 50

$50 27

$100 3

Total 1000

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3-05

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Denomination Number P(occurrence) E(x)

$1 570 0.57 0.57

$5 210 0.21 1.05

$10 140 0.14 1.4

$20 50 0.05 1

$50 27 0.027 1.35

$100 3 0.003 0.3

Total 1,000 1.00 5.67

210 / 1,000 = 0.21

$10 * 0.14 = 1.4

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3-05(c) How many bars of soap would a

customer need to buy, so that on average, they purchase three bars of soap that contain either a $20 or a $50 bill?

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3-05(c)

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3-05(d) If a customer buys 5 bars of soap, what

is the probability that at least one of the bars contains a bill of $20 or larger?

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3-05(d)

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Assume that the loading time for a truck at a warehouse follows an exponential distribution with a mean loading time of 15 minutes(a) What is the probability that it takes 10

minutes or less to load a truck?

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Exponential CDF provides probability of obtaining a value less than or equal to some specified value of x (10 minutes)(a)

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(b) Probability that it takes more than 10 minutes to load a truck?

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(c) Probability that it takes between 10 to 15 minutes to load a truck?

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(c) Probability that it takes between 10 to 15 minutes to load a truck?

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