problemsheet_2

# problemsheet_2 - Q1 A company conducted a survey of its...

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prices (x and y) have been predicted for each stock. Stock A x 75 100 125 150 175 200 p(x) 0.15 0.12 0.1 0.15 0.24 0.24 Stock B y 95 100 105 110 p(y) 0.1 0.25 0.5 0.15 Calculate the expected value and the standard deviation of the prices for a share of each stock in the next year. Which stock yields the highest expected gain? Q4 An admissions committee selects students for an MBA program. Past data show that 70% of all admitted students complete the degree program and graduate. It is also known that 50% of the graduating students scored above 500 on the Graduate Management Admissions Test (GMAT), while only 20% of the students who do not graduate scored that well. Consider a newly admitted MBA student. (a) What is the probability that she scored above 500 on the GMAT?
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## This note was uploaded on 09/18/2010 for the course BBA ISOM111 taught by Professor Hu during the Fall '08 term at HKUST.

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problemsheet_2 - Q1 A company conducted a survey of its...

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