Choir/W L/ 5.2ng Erma/e
An auto insurance separates its clients into 3 age groups: Group A includes those under 25 years old,
Group B includes those 25-39 years old, and Group C includes those 40 years old and older. Group A
represents 25% of total policy

Chapter 4 - LO 4.1 4.2 4.3 4.4 4.5 4.6 4.7
LO 4.1
Describe fundamental probability concepts.
Probability - is a numerical value that measures the
likelihood that an event occurs.
The value of a probability is between zero (0) and
one (1).
A probability

#5.
Let B = bus C=car T = train
L = late
(a) Given in the problem:
P(B) = P(C) = P(T) = 1/3 = .3333
P(L|B) = 0.2
PL|C) = 0.5
P(L|T) = 0.01
Want P(C|L) = _P(C) x P(L|C)_
P(C) x P(L|C) + P(B) x P(L|B) + P(T) x P(L|T)
= _(.3333 x 0.5)_
(.3333x.05) +(.3333x0.

47. More and more households are struggling to pay utility bills given a shaky economy and high heating costs
(The Wall Street Journal, February 14, 2008). Particularly hard hit are households with homes heated with
propane or heating oil. Many of these h

Chapter 4 Probability Problems
1. Where people turn to for news is different for various age groups. Suppose that a study was
conducted of 400 respondents of which 200 were between the ages of 35 and 50 and 200 were
over the age of 50. The table below sum

Chapter 4 Class Handout
A manufacturer is interested in whether there is any relationship between age and potential to
purchase a certain product. A survey of 500 individuals provided the following results:
Age
Young
Middle
Old
Total
(Y)
(MA)
(O)
Potentia

Calculator Instructions
To set the number of decimals: Press the following keys
(this makes the number of decimal places floating)
[2ND] [.] [ENTER] [9] [ENTER] [CE/C] [CE/C]
To calculate the mean, variance and standard deviation (Univariate Data)
The fol

Chapter 4 Bayes Example
An auto insurance separates its clients into 3 age groups: Group A includes those under 25 years old,
Group B includes those 25-39 years old, and Group C includes those 40 years old and older. Group A
represents 25% of total policy

A manufacturer is interested in whether there is any relationship between age and potential to
purchase a certain product. A survey of 500 individuals provided the following results:
Age
Young
Middle
(MA)
Old
Total
(Y)
(O)
Potential to Purchase
High
Mediu

47. More and more households are struggling to pay utility bills given a shaky economy and high heating costs
(The Wat.r Street Journal, February 14, 2008). Particularly hard hit are households with homes heated with
propane or heating oil. Many of these