The probability that a first digit is greater than or

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Unformatted text preview: andomly chosen expense account claim follows Benford's law. Consider the events A={first digit is 7 or greater} and B={first digit is odd). a) What outcomes make up the event A? What is P(A)? b) What outcomes make up the event B? What is P(B)? c) What outcomes make up the event "A or B"? What is P(A or B)? Why is this probability not equal to P(A)+P(B)? Continuous Probability Models When measuring height or weight of a randomly chosen individual, any real number is possible (limited only by the accuracy of our measurements). Since the number of possible outcomes is uncountable, we cannot assign probabilities to individual outcomes. Instead, we assign probabilities to intervals of possible outcomes using the area under a curve. Definition A continuous probability model assigns probabilities as areas under a density curve. The area under the curve and above any range of values is the probability of an outcome in that range. Example (10.8) Random Numbers We can think of a random number generator as producing dec...
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