1. Review
3-25
In 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

2. Review
3-25
(a) What is the probability the company will have a stock price of at least $40?

3. Review
3-25
(a)

4. Review
3-25
(modified b) What is the probability the company will have a stock price no higher than $10?

5. Review
3-25
(modified b)

6. Review
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)

7. Review
3-25
(c)

8. Review
3-25
(c)

9. Review
3-25
(c)

10. Review
3-17
Airline passengers arrive randomly and independently at the passenger screening facility in a major airport. The mean arrival rate is 11 passengers / min

11. Review
3-17
(a) What is the probability of no passengers arriving in a 1 minute time period?

12. Review
3-17
(a) What is the probability of no passengers arriving in a 1 minute time period?

13. Review
3-17
(b) What is the probability of 3 or fewer passengers arriving in a 1 minute time period?

14. Review
3-17
(b)

15. Review
3-17
(c) What is the probability of no passengers arriving in a 20 second time period?

16. Review
3-17
(d) What is the probability of at least one passenger arriving in a 20 second time period?

17. Review
3-11
A 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

18. Review
3-11
(a) In a sample of six citizens, what is the probability that two have ever boycotted goods for ethical reasons?

19. Review
3-11
(a)

20. Review
3-11
(b) In a sample of six citizens, what is the probability that AT LEAST two have ever boycotted goods for ethical reasons?

21. Review
3-11
(b)

22. Review
3-11
(b)

23. Review
3-11
(c) In a sample of 11 citizens, what is the probability that none (zero) have ever boycotted goods for ethical reasons?

24. Review 3-05 Distribution of Paper Currency Prizes
Bill Denomination Number of Bills $ $ $ $ $ $
Total
3-05

25. Review 3-05 $10 * 0.14 = 1.4 210 / 1,000 = 0.21 Denomination Number
P(occurrence)
E(x) $1
570
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

26. Review
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?

27. Review
3-05
(c)

28. Review
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?

29. Review
3-05
(d)

30. Review
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?

31. Review

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

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

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

35. Review

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