MATH 1131: ASSIGNMENT 3
1. A large video rental chain recently decided to change its rental policy, allowing an unlim
ited return date instead of requiring that movies be returned the next day. The marketing
team reasoned that this would greatly increase the popularity of their stores, and also that
80% of people would return their movies within 2 days regardless.
a. Suppose that that a specific store has 5 copies of “The Princess Bride”, and rents
them all on a Saturday.
What is the probability that all 5 copies are returned by
Monday?
b. The same store rented 250 movies in total that Saturday. What is the probability that
at least 75% of these movies were returned by Monday?
2. A popular casino in Windsor estimates that the chance that someone sitting at one of their
Black Jack tables has a 0.35 probability of winning a given hand. Assume that all games
played are independent.
a. Isaac decides to play until his first win, and bets $50 per game. When he wins, he
will win $100. What is Isaac’s expected net gain/loss from this strategy?
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 Spring '10
 AugustineWong
 Math, Normal Distribution, Standard Deviation, Variance, Probability theory, Isaac, video rental chain

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