Practice Problems 2 - Practice Problems 1. Suppose that...

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Unformatted text preview: Practice Problems 1. Suppose that P(A) = 0.60 and P(B) = 0.50. a) Can A and B be mutually exclusive? Why or why not? What is the minimum possible value of P(A B)? What is the maximum possible value of P(A B)? b) What is the minimum possible value of P(A B)? What is the maximum possible value of P(A B)? 2. Suppose that P(A) = 0.40 and P(B) = 0.30. a) Can A and B be mutually exclusive? Why or why not? What is the minimum possible value of P(A B)? What is the maximum possible value of P(A B)? b) What is the minimum possible value of P(A B)? What is the maximum possible value of P(A B)? 3. Consider two events, A and B , such that P(A) = 0.70 , P(B) = 0.40 and P(A B) = 0.82. Are A and B independent? 4. The CPA examination has four parts, one each on accounting problems, auditing, business law, and the theory of accounting. To be certified, an applicant must pass all four parts. Past history shows that on the first attempt 30% pass the accounting part, 35% pass auditing, 30% pass law, and 20% pass theory. a) If success on one part of the examination is independent of success on any other part, what is the probability that an applicant becomes certified on the first attempt to pass the CPA examination? b) Do you believe that this probability is a reasonable approximation if you know that more than 10% of applicants pass all four parts of the examination on their first attempt? Comment on the assumption of independence among parts of the test. 5. 500 people, all of whom drive approximately 10,000 miles per year, were classified according to age and the number of auto accidents each has had during the last three years: Number of Age (in years) Accidents Under 40 Over 40 0 170 80 1 80 70 More than 1 50 50 A person is selected at random from those 500. a) What is the probability that the person selected is over 40 and has had more than 1 accident? b) What is the probability that the person selected is either over 40 or has had more than 1 accident (or both)? c) Find the probability that the person selected is over 40 given that he/she has had more than 1 accident. d) Suppose that the person selected is over 40. What is the probability that he/she has had more than 1 accident? e) Find the probability that the person selected is over 40 given that he/she has had at most 1 accident. f) Find the probability that the person selected has had more than 1 accident given that he/she has had at least one accident. 6. A building has three elevators. The first elevator is waiting at the first floor 40% of the time, the second one is waiting there 20% of the time, and the third elevator is waiting at the first floor with probability 0.25. Assume that all three elevators operate independently....
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Practice Problems 2 - Practice Problems 1. Suppose that...

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