Markov’s and chebyshev’s inequality

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Markov’s and Chebyshev’s inequality are used only where the distribution

M
2 e
is not known in certain to get bounds on probability

-2 urs
20 o
D IC
M LR
When the distribution is known, then it can be used to calculate the exact

,B X
probabilities
T1 of
Q rt
Pa

Shounak Basak
10/19/2020
PODS Area, XLRI – Xavier School of Management
5
Problem
Problem # 8.1

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M
2 e
The items produced in a factory in a day follow a random variable with a mean 50. What is the probability that that

-2 urs
today’s product would be more than 75?

20 o
D IC
M LR
,B X
T1 of
Q rt
Pa

Shounak Basak
10/19/2020
PODS Area, XLRI – Xavier School of Management
6
Solution
Problem # 8.1 Solution

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M
2 e
-2 urs
20 o
D IC
The random variable 𝑋 has mean 50:

M LR
,B X
T1 of
Q rt
Pa

Shounak Basak
10/19/2020
PODS Area, XLRI – Xavier School of Management
7
Solution
Problem # 8.1 Solution

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at
M
2 e
-2 urs
20 o
The random variable 𝑋 has mean 50:

D IC
By Markov’s inequality,

M LR
𝐸𝑋

,B X
𝑃 𝑋 > 75 ≤
75

T1 of
Q rt
Pa

Shounak Basak
10/19/2020
PODS Area, XLRI – Xavier School of Management
8