ECON 2843
Problem Set 2
1.
Problem 4.1 in Newbold on p. 88.
(This was used in class as an example.)
A corporation takes delivery of some new machinery that must be installed and checked
before it becomes available.
The corporation is sure that it will take no more than seven
days for this installation and check to take place.
Let A be the event “It will be more than
four days before the machinery becomes available” and B the event “it will be less than
six days before the machinery becomes available.”
a.
Describe the event that is the complement of event A.
b.
Describe the event that is the intersection of events A and B.
c.
Describe the event that is the union of events A and B.
d.
Are events A and B mutually exclusive?.
e.
Are events A and B collectively exhaustive?
2.
Problem 4.4 in Newbold on p. 95.
(This was used in class as an example.)
Recall the corporation in Exercisw 4.1.
New machinery must be installed and checked
before it becomes operational.
The accompanying table shows a manager’s probability
assessment for the number of days required before the machinery becomes operational.
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 Spring '08
 DavidsonRossier
 Debt, Probability theory, Newbold, b. c. d., C. D. E.

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