# AnswersTest2 - NEW YORK UNIVERSITY DEPARTMENT OF ECONOMICS...

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NEW YORK UNIVERSITY DEPARTMENT OF ECONOMICS Statistics ECON-UB.18.011: Fall 2011 Professor Roman Frydman TEST#2 (2 hours) Please answer all questions. Total 25 points. Problem 1 (3 points) As the price of gasoline continues to rise, many drivers are avoiding hig-octane fuel and fi lling up with regular instead. The following table lists the probabilities of purchase corresponding to automobile engine type (rows) and octane rating (columns). (Also note that you need to complete the probability table below before proceeding to answer the questions.) 87 90 92 four-cylinder 0 5 0 03 missing six-cylinder 0 34 0 02 0 08 A) Suppose the consumer buys gas with an octane rating of 90. What is the probability that his car is six-cylinder? B) Suppose that the consumer’s car is a four-cylinder. What is the probability that the gas purchased has an octane rating of 92? C) Suppose that the consumer buys gas with octane rating of 90 or above. What is the probability that his car not six cylinder. Problem 2 . (3 points) A test is administered nationwide by a private testing service. It is known that for all tests administered last year the distribution of scores was normal with mean 75 and standard deviation 10. Assume that an

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