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Unformatted text preview: 1 Economic Statistics Econ 321 Homework 2: due Tuesday June 8 Solve the following problems. Explain your logic and show your steps. 1. Suppose the probability of passing an exam in the statistics class is 30%. a. What is the probability that a student fails the midterm and passes the final exam? Now suppose that the probability of passing the final exam after failing the midterm is 50% because students get scared and begin to work harder. But the probability of passing the final for those who passed the midterm remains unchanged. b. What is the probability that a student fails the midterm and passes the final exam? c. What is the probability that a student who fails the final exam had also failed the midterm? d. What is the probability that a student who fails the final exam had passed the midterm? 2. A car manufacturer produces 10,000 cars in each of its three plants called 1, 2 and 3. The firm knows that 4%, 5% and 6% of its produced cars in plants 1, 2 and 3 respectively will have a problem with its brakes. When a 5% and 6% of its produced cars in plants 1, 2 and 3 respectively will have a problem with its brakes....
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This note was uploaded on 03/08/2011 for the course ECON 602 taught by Professor Chugh during the Spring '11 term at Johns Hopkins.
 Spring '11
 chugh

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