Econ214_Problem Set_2016-2017.pdf

# A if the firm will be able to stay in business only

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a. If the firm will be able to stay in business only if two or more holes produce oil, what is the probability of its staying in business? b. What is the expected value and standard deviation of the number of holes that result in oil? 5. The number of vehicular accidents occurring in a month on the Accra-Tema motorway is known to conform to the Poisson distribution. The mean number of accidents is 2 per month. a) What is the probability that during a month (i) No accidents will occur? (ii) At least 3 accidents will occur? (iii)Exactly 5 accidents will occur? b) What is the expected number of accidents in a year? 6. The amount of tip the servers in an exclusive restaurant in Accra receive per shift is normally distributed with a mean of GH¢80 and a standard deviation of GH¢10. Shelli feels she has provided poor service if her total tip for the shift is less than \$65. What is the probability she has provided poor service? 7. The diameters of the tyres produced by a tyre manufacturer are normally distributed with mean of 36 inches and a standard deviation of 0.001 inches. What is the
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