Midterm 1. Statistics. October, 28, 2022, Friday, 11:50 Name: 1. Given the following probability distribution, find the expected returns and standard deviation for stocks A and B. Event PCR) Ra Rp Recession 0.10 5%. 4%, Below average 0.30 2% 8% | Normal 0.50 10% 10% [Boom o.10 ea 31% 12% (25 points) 2. A team of 6 men and 3 women are to be chosen from a group of 16 men and 14 women. In how many Ways can the team be chosen? (20 points) 3. There are three groups of students (A, B and C) who are eligible to sit a statistics test. There are 10 students in each group. For every student in group A there is a 0.5 probability that he/she will pass. For groups B and C the probabilities are 0.7 and 0.9 respectively. After the results are announced it so happens that 8 students in each group passed. a. Calculate the probability of 8 students passing for each of the 3 groups. b, Assume that only one group could sit the test. Each group had an equal chance of being selected (with probability 1/3). Evaluate which group was most likely to have been selected given that 8 cut of 10 students passed Hint: the probabilities of the following events should be considered: Event A~group A is selected to sit the test; Event B - group B is selected to sit the test; Event C- group C is selected to sit the test; Event P- 8 out of 10 students passed the test. (30 points) 4, For X~N(2,16) evaluate: a) P(X < 8.8) b) P(X < 2orX 2 15.2) (25 points)QE(8) =(-6 o5).o4 +(-008) 034 0.f. 084+ 0.3/0 0.02 Ver[t,) = (-0.0F -0 oa or +(-0.0$-002/)" 034 [0./0-0.0 6 E+ (9.3/-0,097% 0./-0 bf00f 9 (Q,) = )b.07003 yA tT, 400 Samp Woy Pie 2 ‘ = A Pla DONORS Var[hs)- 0,000 %9 2 "Tish oy (D Any =1es Aw Yn 26 Pu BB ke tol Oe ae 1 S107 ae & a7 36Y 3008 SER = AOLY Bll (39) Ps aoe hy = 10 z Ce: ob Myth Bad Po =09 No= a)4) p(r=8) iP 0) () 0B one ou S as 2 05) ene yar be 0,O¢Y B: Plw-8) 2 [ort 03" = 0,985BOVE T CEN oF eo, Us): Ha): Lage P(P/4) = o.0vy io pier tat Vis Selo £(P/8) = 0.239 P(? Jo) = o./ay t(P)= 0.2%. 0.2 + 0.089.084 5 -D. 9.013240 0699 40.0529 =O. (Y48 OVeTrRL Prob. op Me ee P(a]P) = prod ap veloeting A Sot 10 parte Pp 3 5 Of3d | Gide be 7 88 Jp) > 0 ee DWLY BVM dG) y P(e <3.) - ie p[s< 1p 209597 Wis ope e?: b) reed ov 6A) Hie] ge rls SES) - s(vco} Ble 3.9 = Mu DH 0547-0