Chapter 4: Q87E (page 262)
Find each of the following probabilities for the standard normal random variable z:
Chapter 4: Q87E (page 262)
Find each of the following probabilities for the standard normal random variable z:
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Get started for freeMaking high-stakes insurance decisions. The Journal of Economic Psychology (September 2008) published the results of a high-stakes experiment in which subjects were asked how much they would pay for insuring a valuable painting. The painting was threatened by fire and theft, hence, the need for insurance. To make the risk realistic, the subjects were informed that if it rained on exactly 24 days in July, the painting was considered to be stolen; if it rained on exactly 23 days in August, the painting was considered to be destroyed by fire. Although the probability of these two events, “fire” and “theft,” was ambiguous for the subjects, the researchers estimated their probabilities of occurrence at .0001. Rain frequencies for the months of July and August were shown to follow a Poisson distribution with a mean of 10 days per month.
a. Find the probability that it will rain on exactly 24 days in July.
b. Find the probability that it will rain on exactly 23 days in August.
c. Are the probabilities, parts a and b, good approximations to the probabilities of “fire” and “theft”?
Suppose xis a binomial random variable with n= 20 and
p= .7.
a. Find.
b. Find.
c. Find.
d. Find.
e. Find.
f. Find,, and.
g. What is the probability that xis in the interval?
If x is a binomial random variable, calculate , , and for each of the following:
Shopping vehicle and judgment. Refer to the Journal of Marketing Research (December 2011) study of whether you are more likely to choose a vice product (e.g., a candy bar) when your arm is flexed (as when carrying a shopping basket) than when your arm is extended (as when pushing a shopping cart), Exercise 2.85 (p. 112). The study measured choice scores (on a scale of 0 to 100, where higher scores indicate a greater preference for vice options) for consumers shopping under each of the two conditions. Recall that the average choice score for consumers with a flexed arm was 59, while the average for consumers with an extended arm was 43. For both conditions, assume that the standard deviation of the choice scores is 5. Also, assume that both distributions are approximately normally distributed.
a. In the flexed arm condition, what is the probability that a consumer has a choice score of 60 or greater?
b. In the extended arm condition, what is the probability that a consumer has a choice score of 60 or greater?
Checkout lanes at a supermarket. A team of consultants working for a large national supermarket chain based in the New York metropolitan area developed a statistical model for predicting the annual sales of potential new store locations. Part of their analysis involved identifying variables that influence store sales, such as the size of the store (in square feet), the size of the surrounding population, and the number of checkout lanes. They surveyed 52 supermarkets in a particular region of the country and constructed the relative frequency distribution shown below to describe the number of checkout lanes per store, x.
a. Why do the relative frequencies in the table represent the approximate probabilities of a randomly selected supermarket having x number of checkout lanes?
b. Find and interpret its value in the context of the problem.
c. Find the standard deviation of x.
d. According to Chebyshev’s Rule (Chapter 2, p. 106), what percentage of supermarkets would be expected to fall within? within?
e. What is the actual number of supermarkets that fall within? ? Compare your answers with those of part d. Are the answers consistent?
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