Chapter 3
Example | Part 1
1. The number of defects in a machine-made product is a random variable X with the following
probability distribution:
x
P(x)
0
0.1
1
0.2
2
0.3
3
0.3
4
0.1
a. Show that P(x) is a probability distribution.
b. Find the probabilit

ASSIGNMENT #2 SOLUTION
1. The following table gives a two-way classification of all basketball players at a
state university who began their college careers between 2001 and 2005, based
on gender and whether or not they graduated. (20 pts)
Graduated
Male

Part 01: (Calculating the probability of a given event)
1. COMPLEMENTS
2. INTERSECTION UNION
Part 02: (Case of Conditional Probability)
A financial analyst believes that if interest rates decrease in a given
period, then the probability that the stock mar

BUSINESS STATISTICS
3
Random Variables
Discrete Random Variables (RV)
3-1
Expectation
Variances
Some useful discrete RV
Continuous Random Variables
Some useful continuous RV
Summary and Review of Terms
International University School of Business
Assoc. Pr

ASSIGNMENT #3 - SOLUTION
Question 1:
We define the events:
F = selecting the fair coin
2H = selecting the 2-headed-coin
H = toss results in Head
T = toss results in Tail
We draw a tree diagram:
H
0.5
0.5
F
T
0.5
0.5
2H
H
1
0
T
a. ( | ) =
(|) ()
(|) ()+(|2

Mean, Mode, Median, and Standard Deviation
The Mean and Mode
The sample mean is the average and is computed as the sum of all the observed outcomes from the sample divided by the total
number of events. We use x as the symbol for the sample mean. In math