TUTORIAL 1

1. Compute the mean and variance of the following discrete probability distribution.

𝑥 𝑃(𝑥)
2 0.5
8 0.3
10 0.2

2. Compute the mean and variance of the following probability distribution

𝑥 𝑃(𝑥)
5 0.1
10 0.3
15 0.2
20 0.4
3. Which of these variables are discrete and which are continuous random variables?
a. The number of new accounts established by a salesperson in a year.
b. The time between customer arrivals to a bank ATM.
c. The number of customers in Big Nick’s barber shop.
d. The amount of fuel in your car’s gas tank.
e. The number of minorities on a jury.
f. The outside temperature today.

4. The information below is the number of daily

emergency service calls made by the volunteer No. of calls, Frequency
ambulance service of Walterboro, South Carolina, for 0 8
the last 50 days. To explain, there were 22 days on 1 10
which there were 2 emergency calls, and 9 days on 2 22
3 9
which there were 3 emergency calls
4 1
Total 50

a. Convert this information on the number of calls to a probability distribution.

b. Is this an example of a discrete or continuous probability distribution?
c. What is the mean number of emergency calls per day?
d. What is the standard deviation of the number of calls made daily?

5. In a binomial situation, 𝑛 = 4 and 𝜋 = 0.25. Determine the probabilities of the following

events using the binomial formula.
a. 𝑥 = 2
b. 𝑥 = 3

6. Assume a binomial distribution where 𝑛 = 3 𝑎𝑛𝑑 𝜋 = 0.60.

a. Refer to the table given by your lecturer and list the probabilities for values of 𝑥 from 0
to 3.
 b. Determine the mean and standard deviation of the distribution from the general
definitions given in formulas

7. For a case where 𝑛 = 8 and 𝜋 = 0.30, determine the probability that:

a. 𝑥 = 2.
b. 𝑥 ≤ 2
c. 𝑥 ≥ 3

8. In a recent study, 90 percent of the homes in the United States were found to have large
screen TVs. In a sample of nine homes, what is the probability that:
a. All nine have large-screen TVs?
b. Less than five have large-screen TVs?
c. More than five have large-screen TVs?
d. At least seven homes have large-screen TVs?

9. The speed with which utility companies can resolve problems is very important. GTC, the
Georgetown Telephone Company, reports it can resolve customer problems the same day
they are reported in 70 percent of the cases. Suppose the 15 cases reported today are
representative of all complaints.
a. How many of the problems would you expect to be resolved today? What is the standard
deviation?
b. What is the probability 10 of the problems can be resolved today?
c. What is the probability 10 or 11 of the problems can be resolved today?
d. What is the probability more than 10 of the problems can be resolved today?

10. Kolzak Appliance Outlet just received a shipment of 10 DVD players. Shortly after they were
received, the manufacturer called to report that he had inadvertently shipped 3 defective
units. Ms. Kolzak, the owner of the outlet, decided to test 2 of the 10 DVD players she received.
What is the probability that neither of the 2 DVD players tested is defective? Assume the
samples are drawn without replacement.

11. Ms. Bergen is a loan officer at Coast Bank and Trust. From her years of experience, she
estimates that the probability is 0.025 that an applicant will not be able to repay his or her
installment loan. Last month she made 40 loans.
a. What is the probability that 3 loans will be defaulted?
b. What is the probability that at least 3 loans will be defaulted?