ADDIS ABABA UNIVERSITY

FACULTY OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT
STATISTICS FOR MANAGEMENT (MGMT 222)

Class Discussion Questions

Probability Distribution 2

BINOMIAL DISTRIBTION
1.Suppose a machine producing computer chips has a 6% defective rate. If
accompany purchases 30% of these chips
a. What is the probability that exactly two are defective?
b. What is the probability that exactly five are defective?
c. What is the probability that none are defective?
2.Ten percent of Addis Ababa truck drivers are women. Suppose 10 truck drivers
are randomly selected to be interviewed about quality of work conditions.
a. What is the probability that three of the drivers will be women?
b. What is the probability that none will be women?
c. What is the probability that one will be a woman?
3.The audiovisual department of a university has 13 VCRS (VIDEO CASETE
RECORDERS) in its inventory. Because of state contracts, the audiovisual
department stocks only two brands. Six of the 13 VCRS stocked are Toshiba brand,
and the others are zenith brand. A conference is being conducted at the university,
and VCRS will be needed. The 5 VCRS are randomly selected.

a. What is the probability that all 5 are zenith VCRS?

b. What is the probability that all 5 are Toshiba VCRS?
c. What is the probability that three or more are zenith VCRS?
d. What is the probability that exactly 3 are Toshiba VCRS?
4. At a particular university it has been found that 20% of the students withdraw
without completing the introductory statistics course. Assume that 20 students have
registered for the course this quarter.
a. What is the probability that 2 or fewer will withdraw?
b. What is the probability that exactly four will withdraw
c. What is the probability that exactly 16 will not withdraw?
d. What is the probability that more than three will withdraw?
e. What is the expected number of withdrawals?
Hyper Geometric Distribution
5. Twenty-four people, of whom 8 are women, have applied for a job. if 5 of the
applicants are randomly sampled with out replacement, what is the probability that
exactly 3 of those sampled are women?
POISSON
1. Phone calls arrive at the rate of 48 per hour at the reservation desk for regional
airways. Find the probability of receiving 3 calls in a 5 minute interval of time.
2.A certain restaurant has a reputation for good food. Restaurant management
boasts that on a Saturday night, groups of customers arrive at the rate of 15 groups
every half hour. What is the probability that 5 minutes will pass wit no groups of
customers arriving?
3.a secretary types 75 words per minute and averages 6 errors per hour of typing
assuming error occurrences are a Poisson process. What is the probability that a 225-
word letter will be typed with out error?
Normal
1. Suppose the time required for equipment repairs by company maintenance
personnel is normally distributed with a mean of =50 minutes and with a standard
deviation of =10 minutes.
a. What is the probability that a randomly chosen piece of equipment will
require between 50and 60 minutes to repair?
b. What is the probability that more than 70 minutes will be required to repair
apiece of equipment?
c. What is the probability that the required equipment repair time is between
40 and 70 minutes?
d. What is the probability that the required equipment repair time is either less
than 25 or grater than 75?
e. What is the probability that the required equipment repair time is between
35 and 50?
2. A certain bank is reviewing its service chares and interest paying policy on
checking account. The bank has found that the average daily balance on personal
checking accounts is $550, with a standard deviation of $150. The bank is considering
paying interest to customers carrying average daily balances in excess of a certain
amount. If the bank does not want to pay interest to more than 5%of its customers,
what is the minimum average daily balance it should be willing to pay?
3.The standard deviation of a certain distribution is 12.56, and 71.97% of the values
are grater than 56. What is the value of?
Normal approximation to binomial
1.suppose a particular company has a history of making errors in 10%of its invoices.

A sample of 100 invoices has been taken,

a. What is the probability that 12 invoices contain errors?

b. What is the probability of 13 or fewer errors in the sample of 100 invoices?