HomeWork_5 - reimbursement expenses. How much should the...

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Home Work 5: 1. A continuous random variable X is uniformly distributed over the interval [0, 6]. Event A=(0.5< X< 3.5) , event B=(1 X 5) . a. Are events A and B dependent? Explain. b. Are events A and B mutually exclusive? Explain. c. Graph the probability density function of this distribution. d. Find μ and σ 2 and locate the value of μ on your graph 2. A company found that monthly reimbursements to their employees, x , could be adequately modeled by a uniform distribution over the interval $10,000 < x < $15,000. a. Find E ( x ) and interpret it in the context of the exercise. b. What is the probability of employee reimbursements exceeding $12,000 next month? c. For budgeting purposes, the company needs to estimate next month's employee
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Unformatted text preview: reimbursement expenses. How much should the company budget for employee reimbursements if they want the probability of exceeding the budgeted amount to be only .20? 3. For the standard normal random variable z, compute the following probabilities. a. ) 83 . ( z P b. ) 57 . 1 ( -z P c. ) 44 . ( z P d. ) 23 . (- z P e. ) 20 . 1 ( &lt; z P f. ) 71 . (- z P 4. The demand for a new product is estimated to be normally distributed with =200 and = 40. Let x be the number of units demanded and find the following probabilities. a. ) 220 180 ( x P b. ) 250 ( x P c. ) 100 ( x P d. ) 250 225 ( x P...
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This note was uploaded on 02/06/2012 for the course ECON 103 taught by Professor Gispy during the Spring '11 term at Prairie State College .

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