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1- The random variable X has the following discrete probability distribution:

X
P(X)

-2
0.1

0
0.2

3
0.4

4
0.1

a) Find P(X=2) ______________________________


b) Find P (X>3) __________________________________
c) Find P (X0) _________________________
d) Find the expected value (mean) of X __________________________
e) Find the variance of X ____________________________

2- The probability of an item of certain type to be defective is p= 0.12. In a sample


of n = 10 such items, find:

a) The probability that none is defective _____________________________


b) The probability that at least one is defective ___________________________
c) The probability that more than two but less than five are defective.
_______________________
d) The expected value of defective items ____________________________
e) The standard deviation of the number of defective items
___________________________

3- A persons level of blood glucose and diabetes are closely related. Let X be the
level of blood glucose measured in milligrams of glucose per deciliter of blood. After
a 12 hour fast, the random variable X will have a distribution that is approximately
normal with mean = 85 and standard deviation =25 . What is the probability
that, after a 12 hour fast ,
a)
b)
c)
d)
e)

X is more than 60?


X is less than 110?
X is between 60 and 110?
X is greater than 140? ( borderline diabetes starts at 140 )
Find the 80th percentile of the distribution of X

4- The exchange rate between Japanese yen and the US dollar is an


important financial figure. Let X be a random variable that represents the
number of yen that can be purchased for one US dollar. Based on information
from The Wall Street Journal (June to December 1993), X has and
approximate normal distribution with mean = 111.4 and standard deviation
= 9.4. Let

be the average exchange rate for n= 30 trading days:

a) What type of distribution does

follow?

_______________________________
b) Compute the mean of

___________________________

c) Compute the standard deviation of

_____________________________

d) What is the probability that the average exchange rate is greater than
110? ____________________
e) What is the probability that the average exchange rate is less than 114?
________________________