Week 3.
2 Tutorial
1. For the following exercises, decide whether the statement makes sense (or is clearly true) or
does not make sense (or is clearly false).
a. The binomial distribution can be used to model the number of times a coin lands on heads in
a sequence of 10 flips.
b. The binomial distribution can be used to model the height of a student.
c. The probability of getting at least 1 head in 3 coin flips is 0.5.
d. The binomial distribution is an example of a discrete random variable.
2. John Doe sells new cars for Pelican Ford. John usually sells the largest number of cars
on Saturday. He has developed the following probability distribution for the number of cars
he expects to sell on a particular Saturday.
a. On a typical Saturday, how many cars does John expect to sell?
b. What is the probability of selling at least 2 cars?
c. What is the probability of selling no cars or at most 2?
d. What is the standard deviation of the distribution?
3. A small business sells three products: Product A, Product B and Product C. The probabilities of
selling each product on any given day are as follows:
• P(A) = 0.4
• P(B) = 0.35
• P(C) = k
The profits from each product sale are:
• Product A: $50
• Product B: $40
• Product C: $C
Given that mean profit per product is $45, do the following:
a. Construct the discrete probability distribution table for the profits from selling a product.
b. Determine the standard deviation of the profit distribution.
4. The Census Bureau reports that 27% of California residents are foreign-born. Suppose that you
choose three Californians at random, so that each has probability 0.27 of being foreign-born and the
three are independent of each other. Let the random variable W be the number of foreign-born
people you chose.
a. What are the possible values of W?
b. What is the probability of all three being foreign born?
c. What is the probability that at least one of them is foreign born?
d. What is the probability that at most one of them is foreign born?
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5. An American Society of Investors survey found 30% of individual investors have used a
discount broker. If we randomly select 12 individuals,
a. Calculate the mean and standard deviation of number of investors who used discount
account.
b. What is the probability that exactly two of the sampled individuals have used a discount
broker?
c. What is the probability of having at least one individual with a discount account?
d. What is the probability of having more than 4 individuals with a discount account? (You can
use the Binomial Table for this part).
e. What is the probability of having more than 2 but fewer than 9 individuals with a discount
account? (You can use the Binomial Table for this part).
6. An FBI survey shows that about 80% of all property crimes go unsolved. Suppose that in your
town 4 such crimes are committed and they are each deemed independent of each other.
a. What is the probability that 1 of 4 of these crimes will be solved?
b. What is the probability that at least 1 of 4 of these crimes will be solved?
c. Suppose total of 5985 crimes were reported to FBI during the month of September 2019.
Find the mean and standard deviation of solved crimes.
7. The following notice appeared in the golf shop at a Myrtle Beach, South Carolina, golf
course.
What is the expected gain from playing this raffle?
