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Full Download Solution Manual For Essentials of Modern Business Statistics With Microsoft Excel 7Th Edition David R Anderson PDF
Full Download Solution Manual For Essentials of Modern Business Statistics With Microsoft Excel 7Th Edition David R Anderson PDF
Learning Objectives
3. Be able to compute and interpret the expected value, variance, and standard deviation for a discrete
random variable.
5. Be able to compute the covariance and correlation coefficient for a bivariate empirical discrete
distribution.
6. Be able to compute and work with probabilities involving a binomial probability distribution.
7. Be able to compute and work with probabilities involving a Poisson probability distribution.
5-1
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Chapter 5
Solutions:
c.
Outcome Values of x
(H,H) 2
(H,T) 1
(T,H) 1
(T,T) 0
c. Continuous
c.
Experimental Outcome (Y,Y,Y) (Y,Y,N) (Y,N,Y) (N,Y,Y) (Y,N,N) (N,Y,N) (N,N,Y) (N,N,N)
Value of N 3 2 2 2 1 1 1 0
4. 0, 1, 2, 3, 4, 5, 6, 7, 8, 9
5. a. S = {(1,1), (1,2), (1,3), (2,1), (2,2), (2,3)} where the first value of each pair represents the number
of steps used in the first procedure and the second value represents the number of steps used in the second
procedure.
b.
6. a. values: 0,1,2,...,20
discrete
b. values: 0,1,2,...
discrete
c. values: 0,1,2,...,50
5-2
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Discrete Probability Distributions
discrete
d. values: 0 x 8
continuous
e. values: x > 0
continuous
b.
f (x) = 1
9. a.
x f(x)
1 0.253
2 0.195
3 0.155
4 0.109
5 0.288
5-3
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Chapter 5
b. Middle Managers
x f (x)
1 0.04
2 0.10
3 0.12
4 0.46
5 0.28
1.00
e. Senior executives appear to be more satisfied than middle managers. 83% of senior executives have
a score of 4 or 5 with 41% reporting a 5. Only 28% of middle managers report being very satisfied.
11. a.
Duration of Call
x f (x)
1 0.25
2 0.25
3 0.25
4 0.25
1.00
b.
f (x)
0.30
0.20
0.10
x
0 1 2 3 4
c. f (x) 0 and f (1) + f (2) + f (3) + f (4) = 0.25 + 0.25 + 0.25 + 0.25 = 1.00
5-4
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Discrete Probability Distributions
d. f (3) = 0.25
c. f (100,000) = .10
13. a. Yes, since f (x) 0 for x = 1,2,3 and f (x) = f (1) + f (2) + f (3) = 1/6 + 2/6 + 3/6 = 1
= 1 - .95 = .05
E(x) = = 6
b.
x x- (x - )2 f (x) (x - )2 f (x)
3 -3 9 .25 2.25
6 0 0 .50 0.00
9 3 9 .25 2.25
4.50
Var(x) = 2 = 4.5
c. = 4.50 = 2.12
16. a.
y f (y) y f (y)
2 .2 .4
4 .3 1.2
7 .4 2.8
8 .1 .8
5-5
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Chapter 5
1.0 5.2
E(y) = = 5.2
b.
y y- (y - )2 f (y) (y - )2 f (y)
2 -3.20 10.24 .20 2.048
4 -1.20 1.44 .30 .432
7 1.80 3.24 .40 1.296
8 2.80 7.84 .10 .784
4.560
Var ( y ) = 4.56
= 4.56 = 2.14
17. a.
Probability
Score (x) Frequency f(x)
3 4 0.0090
4 57 0.1287
5 212 0.4786
6 139 0.3138
7 27 0.0609
8 4 0.0090
443 1.00
e. = .7037 = .8389
e. The expected number of times that owner-occupied units have a water supply stoppage lasting 6 or
more hours in the past 3 months is 1.1825, slightly less than the expected value of 1.2180 for renter-
occupied units. And, the variability is somewhat less for owner-occupied units (1.0435) as compared
to renter-occupied units (1.2085).
20. a.
x f (x) xf (x)
0 .85 0
500 .04 20
1000 .04 40
3000 .03 90
5000 .02 100
8000 .01 80
10000 .01 100
Total 1.00 430
The expected value of the insurance claim is $430. If the company charges $430 for this type of
collision coverage, it would break even.
b. From the point of view of the policyholder, the expected gain is as follows:
5-7
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Chapter 5
The policyholder is concerned that an accident will result in a big repair bill if there is no insurance
coverage. So even though the policyholder has an expected annual loss of $90, the insurance is
protecting against a large loss.
d. Executives: = 1.12
e. The senior executives have a higher average score: 4.05 vs. 3.84 for the middle managers. The
executives also have a slightly higher standard deviation.
22. a. E(x) = x f (x) = 300 (.20) + 400 (.30) + 500 (.35) + 600 (.15) = 445
The total number of responses is 1014, so f(0) = 365/1014 = .3600; f(1) = 264/1014 = .2604;
and so on.
5-8
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Discrete Probability Distributions
d. The possible values of y are 1, 2, 3, and 4. The total number of responses is 649, so f(1) = 264/649 =
.41; f(2) = 193/649 = .30; and so on.
y f (y) yf (y)
1 .4068 .4068
2 .2974 .5948
3 .1402 .4206
4 .1556 .6225
Total 1.0000 2.0447
E(y) = 2.0447. The expected value or mean number of cups per day for adults that drink at least one
cup of coffee on an average day is 2.0447 or approximately a mean of 2 cups per day. As expected,
the mean is somewhat higher when we only take into account adults that drink at least one cup of
coffee per day.
Medium preferred.
b. Medium
x f (x) x- (x - )2 (x - )2 f (x)
50 .20 -95 9025 1805.0
150 .50 5 25 12.5
200 .30 55 3025 907.5
2 = 2725.0
Large
y f (y) y- (y - )2 (y - )2 f (y)
0 .20 -140 19600 3920
100 .50 -40 1600 800
300 .30 160 25600 7680
2 = 12,400
5-9
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Chapter 5
b.
x+y f (x +y)
130 .2
80 .5
100 .3
c.
xy 87
xy = = = .98
x y (7.8102)(11.3578)
The random variables x and y are positively related. Both the covariance and correlation coefficient
are positive. Indeed, they are very highly correlated; the correlation coefficient is almost equal to 1.
The variance of the sum of x and y is greater than the sum of the variances by two times the
covariance: 2(87) = 174. The reason it is positive is that, in this case the variables are positively
related. Whenever two random variables are positively related, the variance of the sum of the
randomly variables will be greater than the sum of the variances of the individual random variables.
26. a. The standard deviation for these two stocks is the square root of the variance.
x = Var ( x) = 25 = 5% y = Var ( y ) = 1 = 1%
5 - 10
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Discrete Probability Distributions
Investments in Stock 1 would be considered riskier than investments in Stock 2 because the standard
deviation is higher. Note that if the return for Stock 1 falls 8.45/5 = 1.69 or more standard deviation
below its expected value, an investor in that stock will experience a loss. The return for Stock 2
would have to fall 3.2 standard deviations below its expected value before an investor in that stock
would experience a loss.
b. Since x represents the percent return for investing in Stock 1, the expected return for investing $100
in Stock 1 is $8.45 and the standard deviation is $5.00. So to get the expected return and standard
deviation for a $500 investment we just multiply by 5.
c. Since x represents the percent return for investing in Stock 1 and y represents the percent return for
investing in Stock 2, we want to compute the expected value and variance for .5x + .5y.
.5 x +.5 y = 5 = 2.236
d. Since x represents the percent return for investing in Stock 1 and y represents the percent return for
investing in Stock 2, we want to compute the expected value and variance for .7x + .3y.
xy −3
xy = = = −.6
x y (5)(1)
27. a. Dividing each of the frequencies in the table by the total number of restaurants provides the joint
probability table below. The bivariate probability for each pair of quality and meal price is shown in
the body of the table. This is the bivariate probability distribution. For instance, the probability of a
rating of 2 on quality and a rating of 3 on meal price is given by f(2, 3) = .18. The marginal
probability distribution for quality, x, is in the rightmost column. The marginal probability for meal
price, y, is in the bottom row.
5 - 11
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Chapter 5
Since, the covariance xy = .2854 is positive we can conclude that as the quality rating goes up, the
meal price goes up. This is as we would expect.
xy .2854
e. xy = = = .5221
x y .4964 .6019
With a correlation coefficient of .5221 we would call this a moderately positive relationship. It is
not likely to find a low cost restaurant that is also high quality. But, it is possible. There are 3 of
them leading to f (3,1) = .01.
5 - 12
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Discrete Probability Distributions
z f (z)
128 .05
130 .20
133 .20
138 .25
140 .20
143 .10
1.00
d. The computation of the expected value, variance, and standard deviation of total manufacturing cost
is shown below.
e. To determine if x = parts cost and y = direct labor cost are independent, we need to compute the
covariance xy .
Since the covariance is not equal to zero, we can conclude that direct labor cost is not independent of
parts cost. Indeed, they are negatively correlated. When parts cost goes up, direct labor cost goes
down. Maybe the parts costing $95 come from a different manufacturer and are higher quality.
Working with higher quality parts may reduce labor costs.
The total manufacturing costs of $198,350 are less than we would have expected. Perhaps as more
printers were manufactured there was a learning curve and direct labor costs went down.
xy
xy =
x y
5 - 13
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Chapter 5
In this case, we know the correlation coefficient and both standard deviations, so we want to
rearrange this formula to find the covariance.
b. Letting r = portfolio percentage return, we have r = .5x + .5y. The expected return for a portfolio
with 50% invested in the S&P 500 and 50% invested in Core Bonds is
We are given x and y , so Var ( x) = 19.452 = 378.3025 and Var ( y) = 2.132 = 4.5369 . We can now
compute
= 89.08
So, the expected return for our portfolio is 5.41% and the standard deviation is 9.44%.
c. Letting r = portfolio percentage return, we have r = .2x + .8y. The expected return for a portfolio
with 20% invested in the S&P 500 and 80% invested in Core Bonds is
We are given x and y , so Var ( x) = 19.452 = 378.3025 and Var ( y) = 2.132 = 4.5369 . We can now
compute
Var (.2 x + .8 y ) = .22Var ( x) + .82Var ( y ) + 2(.2)(.8)( xy )
= 13.79
So, the expected return for our portfolio is 5.63% and the standard deviation is 3.71%.
d. Letting r = portfolio percentage return, we have r = .8x + .2y. The expected return for a portfolio
with 80% invested in the S&P 500 and 20% invested in Core Bonds is
We are given x and y , so Var ( x) = 19.452 = 378.3025 and Var ( y) = 2.132 = 4.5369 .
5 - 14
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Discrete Probability Distributions
= 238.05
So, the expected return for our portfolio is 5.19% and the standard deviation is 15.43%.
e. The portfolio in part (c), investing 20% in the S&P500 fund and 80% in the Core Bond fund has the
largest expected return: 5.63%.
The portfolio in part (c), investing 20% in the S&P 500 fund and 80% in the Core Bond fund also
has the smallest standard deviation: 3.71%.
Since the portfolio in part (c) has the highest expected return and the smallest standard deviation (our
measure of risk) it is the preferred investment choice.
f. Since the expected returns of each portfolio are very close to each other (less than 0.5% difference in
any of them), investors might be more interested is the risk assessments of each (standard deviation).
A larger standard deviation is a riskier investment with potential of larger losses in a poor market,
but also larger returns in a strong market. Optimists who are willing to take the risk might look to
the riskier investments, while older investors will likely choose less risky investments. Although the
portfolio in part (c), investing 20% in the S&P500 fund and 80% in the Core Bond fund has the
largest return and least risk, the portfolio in (d) investing 80% in the S&P500 fund and 20% in the
Core Bond fund has the potential for the highest returns in a strong market due to the very large
standard deviation.
xy
xy =
x y
In this case, we know the correlation coefficients and the 3 standard deviations, so we want to
rearrange the correlation coefficient formula to find the covariances.
S&P 500 and REITs: xz = xz x z = (.74)(19.45)(23.17) = 333.486
b. Letting r = portfolio percentage return, we have r = .5x + .5y. The expected return for a portfolio
with 50% invested in the S&P 500 and 50% invested in REITs is
5 - 15
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Chapter 5
We are given x and y , so Var ( x) = 19.452 = 378.3025 and Var ( z) = 23.172 = 536.8489 . We can
now compute
=.25(378.3025)+.25(536.8489)+.5(333.486)
=395.53
So, the expected return for our portfolio is 9.055% and the standard deviation is 19.89%.
c. Letting r = portfolio percentage return, we have r = .5y + .5z. The expected return for a portfolio
with 50% invested in Core Bonds and 50% invested in REITs is
We are given x and y , so Var ( y) = 2.132 = 4.5369 and Var ( z) = 23.172 = 536.8489 . We can now
compute
= 135.33
So, the expected return for our portfolio is 9.425% and the standard deviation is 11.63%.
d. Letting r = portfolio percentage return, we have r = .8y + .2z. The expected return for a portfolio
with 80% invested in Core Bonds and 20% invested in REITs is
From part (c) above, we have Var ( y ) = 4.5369 and Var ( z ) = 536.8489 . We can now compute
= 24.36
5 - 16
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Discrete Probability Distributions
So, the expected return for our portfolio is 7.238% and the standard deviation is 4.94%.
e. The expected returns and standard deviations for the 3 portfolios are summarized below.
The portfolio from part (c) involving 50% Core Bonds and 50% REITS has the highest return.
Using the standard deviation as a measure of risk, it also has less risk than the portfolio from part (b)
involving 50% invested in an S&P 500 index fund and 50% invested in REITs. So the portfolio
from part (b) would not be recommended for either type of investor.
The portfolio from part (d) involving 80% in Core Bonds and 20% in REITs has the lowest standard
deviation and thus lesser risk than the portfolio in part (c). We would recommend the portfolio
consisting of 50% Core Bonds and 50% REITs for the aggressive investor because of its higher
return and moderate amount of risk.
We would recommend the portfolio consisting of 80% Core Bonds and 20% REITS to the
conservative investor because of its low risk and moderate return.
31. a.
2 2!
b. f (1) = (.4)1 (.6)1 = (.4)(.6) = .48
1 1!1!
2 2!
c. f (0) = (.4)0 (.6) 2 = (1)(.36) = .36
0 0!2!
2 2!
d. f (2) = (.4) 2 (.6)0 = (.16)(1) = .16
2 2!0!
5 - 17
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Chapter 5
f. E(x) = n p = 2 (.4) = .8
= .48 = .6928
= .9 = .9487
e. E(x) = n p = 20(.7) = 14
= 4.2 = 2.0494
34. a. Yes. Since the teenagers are selected randomly, p is the same from trial to trial and the trials are
independent. The two outcomes per trial are use Pandora Media Inc.’s online radio service or do not
use Pandora Media Inc.’s online radio service.
10!
f ( x) = (.35) x (1 − .35)10− x
x !(10 − x )!
10!
b. f (0) = (.35)0 (.65)10−0 = .0135 OR BINOM.DIST(0,10,.35,FALSE) = .0135
0!(10 − 0)!
10!
c. f (4) = (.35) 4 (.65)10−4 = .2377 OR BINOM.DIST(4,10,.35,FALSE) = .2377
4!(10 − 4)!
5 - 18
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Discrete Probability Distributions
10!
f (1) = (.35)1 (.65)10−1 = .0725
1!(10 − 1)!
10!
f ( x) = (.40) x (1 − .40)10− x
x !(10 − x )!
10!
f (0) = (.40)0 (.60)10−0 = .0060 OR BINOM.DIST(0,10,.4,FALSE) = .0060
0!(10 − 0)!
10!
b. f (1) = (.40)1 (.60)10−1 = .0403 OR BINOM.DIST(1,10,.4,FALSE) = .0403
1!(10 − 1)!
Probability more than half = .1115 + .0425 + .0106 + .0016 + .0001 = .1662
OR 1 - BINOM.DIST(5,10,.4,TRUE) = .1662
36. a. Probability of a defective part being produced must be .03 for each part selected; parts must be
selected independently.
b. Let: D = defective
G = not defective
5 - 19
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Chapter 5
Experimental Number
1st part 2nd part Outcome Defective
D (D, D) 2
D G
(D, G) 1 .
G
D (G, D) 1
G
(G, G) 0
37. a. Yes. Since the adults are selected randomly, p is the same from trial to trial and the trials are
independent. The two outcomes per trial are use the Internet and do not use the Internet.
10!
f ( x) = (.15) x (1 − .15)10 − x
x !(10 − x)!
10!
b. f (0) = (.15)0 (1 − .15)10 −0 = BINOM.DIST(0,10,.15,FALSE) = .1969
0!(10 − 0)!
10!
c. f (3) = (.15)3 (1 − .15)10 −3 = BINOM.DIST(3,10,.15,FALSE) = .1298
3!(10 − 3)!
d. f ( x 1) = 1 − f (0) = 1 − .1969 = .8031 OR 1 - BINOM.DIST(0,10,.15,FALSE) = .8031
38. a. .90
5 - 20
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Discrete Probability Distributions
2!
f (1) = (.9)1 (.1)1
1! 1!
= 2(.9)(.1) = .18
OR BINOM.DIST(1,2,.9,FALSE) = .18
2!
f (2) = (.9)1 (.1) 0
2! 0!
= 1(.81)(1) = .81
OR BINOM.DIST(2,2,.9,FALSE) = .81
Alternatively
2!
f (0) = (.9)0 (.1) 2 = .01
0! 2!
3!
f (0) = (.9)0 (.1)3 = .001
0! 3!
d. Yes; P(at least 1) becomes very close to 1 with multiple systems and the inability to detect an attack
would be catastrophic.
20!
f ( x) = (.2037) x (1 − .2037)10− x
x !(20 − x)!
20!
f (8) = (.2037)8 (1 − .2037)10 −8 = .0243 = BINOM.DIST(8,20,.2037,FALSE) = .0243
8!(20 − 8)!
5 - 21
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Chapter 5
c. E ( x) = np = 20(.2037) = 4.0740
40. a. Yes. Since the 18- to 34-year olds living with their parents are selected randomly, p is the same
from trial to trial and the trials are independent. The two outcomes per trial are contribute to
household expenses or do not contribute to household expenses.
15!
f ( x) = (.75) x (1 − .75)15− x
x !(15 − x )!
15!
f (0) = (.75)0 (1 − .75)15−0 = .0000 OR BINOM.DIST(0,15,.75,FALSE) = .0000
0!(15 − 0)!
Obtaining a sample result that shows that none of the fifteen contributed to household expenses is so
unlikely you would have to question whether the 75% value reported by the Pew Research Center is
accurate.
d. = n p = 20 (.20) = 4
20!
42. a. f (4) = (.30)4 (.70)20−4 = .1304 OR BINOM.DIST(4,20,.3,FALSE) = .1304
4!(20 − 4)!
5 - 22
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Discrete Probability Distributions
20!
f (0) = (.30)0 (.70) 20−0 = .0008
0!(20 − 0)!
20!
f (1) = (.30)1 (.70)20−1 = .0068
1!(20 − 1)!
c. E(x) = n p = 20(.30) = 6
= 4.2 = 2.0494
43. a. E ( x) = np =100(.71) = 71
3x e−3
44. a. f ( x) =
x!
32 e−3 9(.0498)
b. f (2) = = = .2240
2! 2
31 e−3
c. f (1) = = 3(.0498) = .1494
1!
2 x e−2
45. a. f ( x) =
x!
6x e−6
c. f ( x) =
x!
5 - 23
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Chapter 5
22 e−2 4(.1353)
d. f (2) = = = .2707
2! 2
66 e−6
e. f (6) = = .1606
6!
45 e−4
f. f (5) = = .1563
5!
43 e−4
f (3) = = .1954 = POISSON.DIST(3,4,FALSE) = .1954
3!
1210 e−12
f (10) = = POISSON.DIST(10,12,FALSE) = .1048
10!
40 e−4
f (0) = = POISSON.DIST(0,4,FALSE) = .0183
0!
2.40 e−2.4
f (0) = = POISSON.DIST (0,2.4,FALSE) = .0907
0!
b. = 1 (5/2) = 5/2
(5 / 2)3 e−(5 / 2)
f (3) = = POISSON.DIST(3,2.5,FALSE) = .2138
3!
(5 / 2)0 e−(5 / 2)
c. f (0) = = POISSON.DIST(0,2.5,FALSE) = .0821
0!
5 - 24
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Discrete Probability Distributions
3.60 e −3.6
f (0) = = e −3.6 = .0273 OR POISSON.DIST(0,3.6,FALSE) = .0273
0!
Note: The value of f(0) was computed in part (a); a similar procedure was used to compute the
probabilities for f(1), f(2), and f(3).
100 e−10
49. a. f (0) = = POISSON.DIST(0,10,FALSE) = .000045
0!
2.50 e−2.5
f (0) = = POISSON.DIST(0,2.5,FALSE) = .0821
0!
.60 e −.6
b. f (0) = = .5488 OR POISSON.DIST(0,.6,FALSE) = .5488
0!
.61 e −.6
c. f (1) = = .3293 OR POISSON.DIST(1,.6,FALSE) = .3293
1!
x e−
f ( x) =
x!
70 e−7
f (0) = = .0009 OR POISSON.DIST(0,7,FALSE) = .0009
0!
5 - 25
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Chapter 5
c. = 7 per hour
3.50 e−3.5
d. f (0) = = .0302 OR POISSON.DIST(0,3.5,FALSE) = .0302
0!
52. All parts involve the hypergeometric distribution with N=10, r=3
3 10 − 3 3! 7!
1 4 − 1 1!2!
3!4! (3)(35)
a. f (1) = = = = .50 n=4, x=1
10 10! 210
4!6!
4
3 10 − 3
2 2 − 2 (3)(1)
b. f (2) = = = .0667 n=2, x=2
10 45
2
3 10 − 3
2 4 − 2 (3)(21)
d. f (2) = = = .30 n=4, x=2
10 210
4
e. The scenario of n=4, x=4 is not possible with r=3 because it is not possible to have 4 actual
successes (x) out of 3 possible successes (r).
4 15 − 4
3 10 − 3 (4)(330)
53. f (3) = = = .4396 N=15 r=4, n=10, x=3
15 3003
10
OR HYPGEOM.DIST(3,10,4,15,FALSE) = .4396
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Discrete Probability Distributions
7 3
f (2) = =
2 1 (21)(3)
a. = .5250 n=3, x=2 OR HYPGEOM.DIST(2,3,7,10,FALSE) = .5250
10 120
3
7 3
f (3) = =
3 0 (35)(1)
= .2917 n=3, x=3 OR HYPGEOM.DIST(3,3,7,10,FALSE) = .2917
10 120
3
a. r = 20, x = 2
20 32
f (2) = =
2 0 (190)(1)
= HYPGEOM.DIST(2,2,20,52,FALSE) = .1433
52 1326
2
b. r = 4, x = 2
4 48
f (2) = =
2 0 (6)(1)
= HYPGEOM.DIST(2,2,4,52,FALSE) = .0045
52 1326
2
c. r = 16, x = 2
16 36
f (2) = =
2 0 (120)(1)
= HYPGEOM.DIST(2,2,16,52,FALSE) = .0905
52 1326
2
d. Part (a) provides the probability of blackjack plus the probability of 2 aces plus the probability of
two 10s. To find the probability of blackjack we subtract the probabilities in (b) and (c) from the
probability in (a).
56. N = 60 n = 10
a. r = 20 x = 0
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Chapter 5
20 40 40!
(1)
0 10 10!30!
f (0) = = = HYPGEOM.DIST(0,10,20,60,FALSE) = .0112
60 60!
10!50!
10
b. r = 20 x = 1
20 40
f (1) = = HYPGEOM.DIST(1,10,20,60,FALSE) = .0725
1 9
60
10
d. Same as the probability one will be from Hawaii. In part b that was found to equal approximately
.07. This is also shown with the hypergeometric distribution with N=60, r=40, n= 10, and x=9
OR HYPGEOM.DIST(9,10,40,60,FALSE) = .0725
57. All parts involve the hypergeometric distribution with N=15, r=5
5 10
a. f (0) = =
0 3 (1)(120)
= HYPGEOM.DIST(0,3,5,15,FALSE) = .2637 n=3, x=0
15 455
3
5 10
f (1) = =
1 2 (5)(45)
b. = HYPGEOM.DIST(1,3,5,15,FALSE) = .4945 n=3, x=1
15 455
3
5 10
f (2) = =
2 1 (10)(10)
c. = HYPGEOM.DIST(2,3,5,15,FALSE) = .2198 n=3, x=2
15 455
3
5 10
f (3) = =
3 0 (10)(1)
d. = HYPGEOM.DIST(3,3,5,15,FALSE) = .0220 n=3, x=3
15 455
3
58. Let x be the number of boxes in the sample that show signs of spoilage. This is a hypergeometric
random variable with N = 100 and r = 8. For n = 10 and x = 2 we have:
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Discrete Probability Distributions
8 92 8! 92!
f (2) = = 2!6! 8!84! = HYPGEOM.DIST(2,10,8,100,FALSE) = .1506
2 8
100 100!
10!90!
10
x f (x)
0 .0960
1 .5700
2 .2380
3 .0770
4 .0190
Total 1.0000
b. and c follow.
d. The expected value of 1.353 indicates that the mean wind condition when an accident occurred is
slightly greater than light wind conditions.
60. a.
x f (x)
1 .150
2 .050
3 .075
4 .050
5 .125
6 .050
7 .100
8 .125
9 .125
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Chapter 5
10 .150
Total 1.000
c.
x f (x) xf (x) x- (x - )2 (x - )2 f (x)
1 .150 .150 -4.925 24.2556 3.6383
2 .050 .100 -3.925 15.4056 .7703
3 .075 .225 -2.925 8.5556 .6417
4 .050 .200 -1.925 3.7056 .1853
5 .125 .625 -.925 .8556 .1070
6 .050 .300 .075 .0056 .0003
7 .100 .700 1.075 1.1556 .1156
8 .125 1.000 2.075 4.3056 .5382
9 .125 1.125 3.075 9.4556 1.1820
10 .150 1.500 4.075 16.6056 2.4908
Total 1.000 5.925 9.6694
E(x) = 5.925 and Var(x) = 9.6694
d. The probability of a new car dealership receiving an outstanding wait-time rating is 2/7 = .2857. For
the remaining 40 – 7 = 33 service providers, 9 received and outstanding rating; this corresponds to a
probability of 9/33 = .2727. For these results, there does not appear to be much difference between
the probability that a new car dealership is rated outstanding compared to the same probability for
other types of service providers.
61. a.
x f (x)
9 .30
10 .20
11 .25
12 .05
13 .20
b. E(x) = x f (x)
However, there is a .20 probability that expenses will equal $13 million and the college will run a
deficit.
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Discrete Probability Distributions
62. a. There are 600 observations involving the two variables. Dividing the entries in the table shown by
600 and summing the rows and columns we obtain the following.
The entries in the body of the table are the bivariate or joint probabilities for x and y. The entries in
the right most (Total) column are the marginal probabilities for x and the entries in the bottom
(Total) row are the marginal probabilities for y.
The probability of a customer purchasing 1 item of reading materials and 2 snack items is given by
f( x = 1, y = 2) =.05.
The probability of a customer purchasing 1 snack item only is given by f(x = 1, y = 0) = .40.
The probability f(x = 0, y = 0) = 0 because the point of sale terminal is only used when someone
makes a purchase.
b. The marginal probability distribution of x along with the calculation of the expected value and
variance is shown below.
c. The marginal probability distribution of y along with the calculation of the expected value and
variance is shown below.
d. The probability distribution of t = x + y is shown below along with the calculation of its expected
value and variance.
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Chapter 5
We see that the expected number of items purchased is E(t) = 1.64 and the variance in the number of
purchases is Var(t) = .5504.
e. From part (b), Var(x) = .3804. From part (c), Var(y) = .45. And from part (d), Var(x + y) = Var(t) =
.5504. Therefore,
= −.14
To compute the correlation coefficient, we must first obtain the standard deviation of x and y.
x = Var ( x) = .3804 = .6168
xy −.14
xy = = = −.3384
x y (.6168)(.6708)
The relationship between the number of reading materials purchased and the number of snacks
purchased is negative. This means that the more reading materials purchased the fewer snack items
purchased and vice versa.
63. a. The All World stock fund would be considered the more risky because it has a larger standard
deviation. Indeed, the stock fund will experience a loss if the return is one standard deviation of
18.9% below the mean or 7.80%.
b. To answer this question we need to compute the expected value, variance, and standard deviation of
.75x + .25y.
To compute the variance and standard deviation of the portfolio, we need to first compute the
variance for x and y.
Var ( x) = 18.92 = 357.21 and Var ( y) = 4.62 = 21.16
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Discrete Probability Distributions
= 197.60
c. To answer this question we need to compute the expected value, variance, and standard deviation of
.25x + .75y.
= 29.5781
d. I would recommend the portfolio in part (b) for an aggressive investor because it has a larger return.
I would recommend the portfolio in part (c) for a conservative investor because it has a smaller
standard deviation and is, thus, less risky.
20
f (3) = (.53)3 (.47)17 = BINOM.DIST(3,20,.53,FALSE) = .0005
3
The expected number who would find it very hard to give up their smartphone is 980.
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Chapter 5
The expected number who would find it very hard to give up their E-mail is 720.
= np (1 - p) = 2000(.36)(.64) = 460.8
= 460.8 = 21.4663
For the 18-34 age group you need to sample at least 157 people to have an expected number of at
least 25.
For the 65 and over age group you need to sample at least 1250 people to have an expected number
of at least 25.
66. Since the shipment is large we can assume that the probabilities do not change from trial to trial and
use the binomial probability distribution.
a. n = 5
5
f (0) = (0.01)0 (0.99)5 = BINOM.DIST(0,5,.01,FALSE) = .9510
0
5
b. f (1) = (0.01)1 (0.99) 4 = BINOM.DIST(1,5,.01,FALSE) = .0480
1
d. No, the probability of finding one or more items in the sample defective when only 1% of the items
in the population are defective is small (only .0490). I would consider it likely that more than 1% of
the items are defective.
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Solution Manual for Essentials of Modern Business Statistics with Microsoft Excel, 7th Editi
c. For this situation p = .765 and (1-p) = .235; but the answer is the same as in part (b). For a binomial
probability distribution, the variance for the number of successes is the same as the variance for the
number of failures. Of course, this also holds true for the standard deviation.
69. = 15
70. = 1.5
= 1 - .8088 = .1912
x e− 104 e−10
71. = 10 f (4) = POISSON.DIST(4,10,FALSE) = .0189 f ( x) = = = .0189
x! 4!
33 e−3
72. a. f (3) = = POISSON.DIST(3,3,FALSE) = .2240
3!
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shield and spear and lioness or mastiff by his side, on clay seal
impression.
69.1 Ann. Brit. School, 1901-1902, p. 29.
70.1 Op. cit., p. 98, fig. 56.
70.2 Trans. Cong. Hist. Relig., ii. p. 155.
70.3 P. 65.
71.1 Op. cit., i. p. 254.
71.2 Ann. Brit. School, 1900-1901, p. 29, n. 3.
71.3 Ib., p. 98.
72.1 Lucian, De Dea Syr., 34; cf. Diod. Sic. 2, 5. Dove with “Astarte”
Asklepios, and the Athenians put a man to death for slaying one
(Var. Hist., v. 17). Did Asklepios as an anthropomorphic divinity
emerge from the sparrow? What, then, should we say of the sacred
snake who might better claim to be his parent? Was Hermes as a
god evolved from a sacred cock? Miss Harrison believes it (op. cit.,
ii. p. 161), because he is represented on a late Greek patera
standing before a cock on a pillar. But the cock came into Europe
perhaps one thousand years after Hermes had won to divine
manhood in Arcadia. On the same evidence we might be forced to
say that the goddess Leto came from the cock (vide Roscher’s
Lexikon, ii. p. 1968, cock on gem in Vienna, with inscription Λητω
Μυχια).
73.1 Ann. Brit. School, 1900-1901, p. 30; cf. the paper by M.
Salomon Reinach, “Anthropologie,” vi., “La sculpture en Europe
avant les influences Gréco-Romaines,” p. 561.
74.1 Evans in Hell. Journ., 1901, p. 169; Winter, Arch. Anz., 1890,
p. 108.
74.2 Hogarth, Hell. Journ., 1902, p. 92.
74.3 Vide gem from Vapheio, published by Evans, Hell. Journ.,
Hammurabi.
121.2 Winckler, op. cit., p. 10.
121.3 Ib., p. 39.
121.4 Keilinschr. Bibl., ii. p. 47.
121.5 Vide Knudtzon, Assyrische Gebete an den Sonnengott, p.
241.
121.6 Vide Langdon, Expositor, 1909, p. 149; cf. Jeremias, s.v.
205.
133.2 Zimmern in K.A.T.3, p. 455; cf. his Beiträge zur Kenntniss der
pleader for man before the high god, cf. the prayer of Ashurbanapal
to Ninlil (Jastrow, p. 525).
159.4 Zimmern, op. cit., p. 15; ib., p. 11.
159.5 Jastrow, op. cit., p. 200.
160.1 Il., 9, 497; cf. my Cults, i. pp. 72-73, 75-77.
160.2 Vide Jeremias in Roscher’s Lexikon, ii. p. 2355.
160.3 Langdon, op. cit., p. 225.
160.4 Jastrow, op. cit., p. 490.
160.5 Ib., p. 529.
160.6 Langdon, op. cit., p. 3.
161.1 Langdon, op. cit., p. 319.
161.2 Cults, iii. p. 33.
CHAPTER IX NOTES
163.1 Roscher, Lexikon, ii. p. 2354.
163.2 Vide Jeremias, Die Cultus-Tafel von Sippar, p. 29.
165.1 Langdon, op. cit., p. 191.
165.2 Ib., p. 193.
165.3 Ib., p. 289.
165.4 Ib., p. 3.
165.5 Tabl. 9, 1, 11.
165.6 Choix des textes religieux Assyriens Babyloniens, p. 270.
165.7 Vide Zimmern, K.A.T.3, p. 423; but cf. his Beiträge zur
Kenntniss d. Babyl. Relig., ii. p. 179, “trefflich ist die grosse Buhle die
herrliche Istar.”
166.1 E.g. by Dhorme, op. cit.
166.2 Keilinschr. Bibl., ii. p. 47.
166.3 Langdon, op. cit., p. 11.
166.4 Ib., p. 289.
166.5 Jastrow, op. cit., 460.
168.1 Only a late Greek inscription from Berytos designates Baal as
the pure God θεῷ ἁγίῳ (Dittenberger, Orient. Graec. Inscr., 590).
168.2 Lagrange, Études sur les religions sémitiques, p. 482.
168.3 Vide Weber, Arabien vor dem Islam, p. 18.
168.4 Epiphanius, Panarium, 51; cf. my Cults, ii. 629.
168.5 C. I. Sem., 1, 1, 195.
169.1 De Civ. Dei, 2, 4; cf. Roscher, Lexikon, i., s.v. “Caelestis.”
C.I.L., 8, 9796.
169.2 Perrot et Chipiez, op. cit., iv. fig. 280.
169.3 Year 1909.
170.1 Vide Cults, iii. pp. 305-306; Sir William Ramsay, in Amer.
Journ. Arch., 1887, p. 348, expressed his belief in the prevalence of
the cult of an Anatolian goddess in the later period, regarded as a
virgin-mother and named Artemis-Leto; the fact is merely that the
goddess Anaitis was usually identified with Artemis, but occasionally
with Leto; but we nowhere find Artemis explicitly identified with Leto,
and the interpretation which he gives to the Messapian inscription
(Artamihi Latho[i], vide Rhein. Mus., 1887, p. 232, Deeke) appears to
me unconvincing.
170.2 The fact that a part of her temple at Kyzikos was called
was dealing here with the evidence gleaned from the period just
before Christianity.
172.1 Cults, iii. p. 206.
172.2 8, 44, 5.
CHAPTER X NOTES
173.1 Langdon, op. cit., pp. 1, 7.
174.1 Vide Langdon, op. cit., p. 225.
174.2 Vide Roscher, Lexikon, ii. p. 2348.
174.3 Vide Zimmern, K.A.T.3, p. 401.
175.1 Even the Pythian Apollo, in our earliest record of his oracle, is
only the voice of “the counsels of God” (cf. Hom. Od., 8, 79).
176.1 Weber, Dämonenbeschwörung bei den Babyloniern und
Assyrern, p. 7.
176.2 Roscher, Lexikon, ii. p. 2355, quoting Hymn iv. R. 29, 1.
176.3 Dhorme, Choix, etc., p. 25, l. 39.
176.4 E.g. Langdon, op. cit., pp. 39-41; cf. p. xix.
176.5 Zimmern, Babyl. Hymne u. Gebete, p. 8.
177.1 Dhorme, Choix, etc., p. 343.
177.2 Roscher, Lexikon, ii. p. 2367 (iv. R. 26, n. 4).
177.3 Langdon, op. cit., pp. 39, 99.
177.4 Vide my essays in Evolution of Religion, pp. 184-192.
177.5 Langdon, op. cit., p. 129.
177.6 Dhorme, op. cit., p. 5, l. 7.
177.7 Jeremias, Hölle und Paradies, p. 12; Roscher, Lexikon, s.v.
“Ninib,” iii. p. 368.
178.1 Vide infra, pp. 291-293.
179.1 Evolution of Religion, pp. 186, 187.
179.2 Zimmern, K.A.T.3, pp. 490, 491, 497.
180.1 Pp. 52-100; cf. Pinches, Religion of Babylonia and Assyria, p.
30, etc.; Zimmern, op. cit., 488-506.
180.2 Il., 14, 246, 302.
180.3 E.g., vide A. Lang, Myth Ritual and Religion, pp. 182, 198,
203; cf. Macdonell, Vedic Mythology, pp. 13, 14; Golther, Handbuch
der German. Mythologie, pp. 512-514.
182.1 Macdonell, op. cit., pp. 12, 13.
182.2 Zimmern, K.A.T.3, p. 497.
182.3 Vide A. Lang, Myth Ritual and Religion, ii. pp. 29, 30.
183.1 Zimmern, K.A.T.3, p. 498; cf. King, op. cit., pp. 84-86.
183.2 Vide Strab., p. 626; others placed it in the volcanic region of
Lydia (ib., p. 579).
183.3 Cf. King, op. cit., pp. 101, 102 (plate); and Zimmern, K.A.T.3,
pp. 502, 503, n. 2.
184.1 Zimmern, K.A.T.3, p. 497.
184.2 King, op. cit., pp. 88-91; Zimmern, op. cit., p. 498 (b).
185.1 Ad Ov. Metam., 1, 34 (the authenticity of the Lactantius
passage is doubted; vide Bapp in Roscher’s Lexikon, iii. p. 3044).
185.2 The first is specially Babylonian, the second in Esarhaddon’s
Inscr., iii. 2393); the reading here is Θεὸν Αὐμόν, probably a mistake
for Αὐμοῦ; cf. Lebas-Wadd., 2395 and 2455.
196.2 Vide Roscher’s Lexikon, ii. p. 2752.
196.3 Vide ib., iii. p. 1496.
196.4 Cults, vol. i., “Athena,” R. 96b (Paus., 1, 42, 4); as regards
“Apollo Sarpedonios” we are uncertain whether the title was not
merely local-geographical.
197.1 Langdon, op. cit., pp. 309, 321; cf. the lines in the hymn, p.
335: “I am the child who upon the flood was cast out—Damu, who on
the flood was cast out, the anointed one who on the flood was cast
out.”
197.2 Bergk’s Lyr. Graec., iii. p. 654.
199.1 Pp. 222-223.
199.2 Vide supra, p. 42.
199.3 Keilinschr. Bibl., ii. p. 191.
200.1 Keil. Bibl., ii. p. 11.
200.2 Ib., p. 69.
200.3 Ib., p. 257.
201.1 Keil. Bibl., ii. pp. 133-134.
201.2 Ib., pp. 203, 207.
201.3 Ib., p. 205.
202.1 We note the indication of a cruel human sacrifice—
consecration of a child to a god or goddess by fire—as a legal
punishment for reopening adjudicated causes (Johns, Babylonian
and Assyrian Laws, etc., p. 95).
CHAPTER XII NOTES
205.1 Vide Dr. Langdon’s paper on “Babylonian Eschatology;” in
Essays in Modern Theology (papers offered to Professor Briggs,
1911), p. 139.
205.2 Vide Jeremias, Hölle und Paradies, p. 30; cf. King, Bab. Rel.,
p. 46—formula for laying a troubled and dangerous ghost—“let him
depart into the west; to Nedu, the Chief Porter of the Underworld, I
consign him.” The west was suggested to the Hellene because of the
natural associations of the setting sun; to the Babylonian, perhaps,
according to Jeremias, op. cit., p. 19, because the desert west of
Babylon was associated with death and demons.
205.3 The “waters of death” figure in the Epic of Gilgamesh, e.g.