E270 HW2

# 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 following: The probability distribution of the random variable X is shown as follows. 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 _____. 3) What is the expected value of x? 4) What is the variance of x? Next SEVEN questions are based on the following: 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 will break even? (x = 0) a) 0.05 b) 0.10 c) 0.15 d) 0.20 6) What is the probability that Gizmex will be profitable, that is, the probability of x > 0? 7) What is the probability that profit will be at least \$100,000? 8) What is the expected value of Gizmex’s profit?
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