{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

recitation5 - to be high and a five-year return of in...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Review and Examples Counting Outcomes of Experiments Assigning Probabilities Events Basic Probability Relationships Random Variables Discrete Probability Distributions Expected Value (Mean) Variance and Standard Deviation Suppose to win a lottery you must correctly match five numbers drawn from the numbers 1 through 40. How many ways could you select your five num- bers? What is the probability of winning this lottery by purchasing a single ticket? 1
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
The following data show the five states with the largest number of Fortune 500 companies. Suppose a Fortune 500 company is selected for a questionnaire. State Number of Companies New York 54 California 52 Texas 48 Illinois 33 Ohio 30 a. Let N be the event that the company is headquartered in New York. Find P ( N ). Note that there are 500 total companies. b. Let B be the event that the company is headquartered in one of these five states. Find P ( B ). Data on the 30 largest stock and balanced funds provided one-year and five- year percentage returns. We will consider a one-year return in excess of 50%
Image of page 2
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: to be high and a five-year return of in excess of 300% to be high. Nine of the funds had one-year returns in excess of 50%, seven of the funds had five-year returns in excess of 300%, and five of the funds had both one-year returns in excess of 50% and five-year returns in excess of 300%. a. What is the probability of a high one-year return? What is the proba-bility of a high five-year return? 2 b. What is the probability of both a high one-year return and a high five-year return? c. What is the probability of neither a high one-year return nor a high five-year return? The following table provides a probability distribution for the random vari-able x . x f ( x ) 3 .25 6 .50 9 .25 a. Make a graph of the probability distribution. b. Compute E ( x ), the expected value of x . 3 c. Compute σ 2 and σ , the variance and standard deviation of x . 4...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern