E270 HW2 - HOMEWORK PROBLEMS FOR CHAPTER 2 Next FOUR...

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HOMEWORK PROBLEMS FOR CHAPTER 2 Next FOUR questions are based on the fol owing: The probability distribution of the random variable X is shown as fol ows. x f(x) 20 0.10 25 0.20 30 0.45 35 0.25 1) The probability that x is less than or equal to 25 is ______. a) 0.10 b) 0.20 c) 0.30 d) 0.45 2) The probability that x is greater than 30 is _____. a) 0.70 b) 0.65 c) 0.45 d) 0.25 3) What is the expected value of x? a) 31.75 b) 30.25 c) 29.25 d) 28.50 4) What is the variance of x? a) 20.6875 b) 31.2500 c) 41.6667 d) 42.7825 Next SEVEN questions are based on the fol owing: x ($1,000) f(x) -100 0.05 0 - 50 0.35 100 0.20 150 0.15 200 0.10 5) What is the probability that Gizmex wil break even? (x = 0) a) 0.05 b) 0.10 c) 0.15 d) 0.20 6) What is the probability that Gizmex wil be profitable, that is, the probability of x > 0? a) 0.95 b) 0.80 c) 0.75 d) 0.70 7) What is the probability that profit wil be at least $100,000? a) 0.20 b) 0.30 c) 0.35 d) 0.45 8) What is the expected value of Gizmex’s profit? a)
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This document was uploaded on 10/27/2011 for the course ECON-E 270 at Indiana.

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