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ec311hw2ans

# ec311hw2ans - Answer Key to Assignment#2 Exercise 4.14(4.5...

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Answer Key to Assignment #2 Exercise 4.14 (4.5) A: rate of return will be more than 10% B: rate of return will be negative a) P(A) = 0.33 + 0.21 = 0.54 b) P(B) = 0.04 + 0.14 = 0.18 c) A : rate of return will be less than or equal to 10% d) P( A ) = 1 – P(A) = 0.46 e) B A : rate of return will be both more than 10% as well as negative = Empty set f) P( B A ) = 0, being an empty set g) B A B : rate of return will be either more than 10% or negative or both h) P( B A B ) = P(A) + P(B) –P( B A ) = 0.54 + 0.18 – 0 = 0.72 i) Yes, since there is no rate of return that are common in events A and B, that is P( B A ) = 0 j) No, because 1 ) ( B A P B , that is the two events are not mutually exhaustive and they do not cover the entire sample space

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Exercise 4.38 (4.21) Define EP: a senior concerned about employment prospects; P(EP) = 0.30 G: a senior concerned about grades; P(G) = 0.25 Also, 20 . 0 ) ( = G EP P G EP B : a senior is concerned about at least one, that is, either EP or G, or both. 35 . 0 20 . 0 25 . 0 30 . 0 ) ( ) ( ) ( ) ( = - + = - + = G EP P G P EP P G EP P ° Exercise 4.27 (4.44) Define WT: an adult watches television program; P(WT) = 0.18 RP: an adult reads publications; P(RP) = 0.12 12 . 0 ) ( = RP WT P a) To find: ? ) / ( = WT RP P WT T W RP 0.10 0.02 0.12 P R 0.08 0.80 0.88 0.18 0.82 1.00 56 . 0
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ec311hw2ans - Answer Key to Assignment#2 Exercise 4.14(4.5...

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