Unformatted text preview: he is not allowed to return unsold papers. He has 20 customers and each customer buys his paper with probability 1/3. Suppose the newsboy buys 20 papers every day. What is the probability that he makes a proﬁt at least 6 days in a given week? *Bonus* Suppose the newsboy buys m papers every day. What value of m makes maximizes his daily expected proﬁt? 5. A father buys lottery tickets to get a doll for his daughter. Assuming that each lottery ticket wins a doll with probability 1/100, approximate the number of tickets the father needs to buy in order to have a 95% chance of winning at least 1 doll. *Bonus* Another father does the same to get a doll for each one of his three daughters. Approximate the number of tickets the father needs to buy in order to have a 95% chance of winning at least 3 dolls....
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 Spring '08
 Castro
 Probability, Variance, Probability theory, Cauchy distribution

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