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Chapter 4: Random Variables and Probability Distributions

Q93E

Page 262

Suppose x is a normally distributed random variable with = 11 and = 2. Find each of the following:

a)P(1012)

b) P(610)

c)P(1316)

d)P(7.812.6)

e)P(13.24)

f)P(7.62)


Q94E

Page 262

Suppose is a normally distributed random variable with =50 and =3 . Find a value of the random variable, call it 0 , such that

a)P(0)=.8413

b)P(>0)=.025

c)P(>0)=.95

d)P(410)=.8630

e) 10% of the values of role="math" localid="1652160513072" are less thanrole="math" localid="1652160519976" 0

f)1% of the values of are greater than0

Q95E

Page 262

Suppose x is a binomial random variable with p = .4 and n = 25.

a. Would it be appropriate to approximate the probability distribution of x with a normal distribution? Explain.

b. Assuming that a normal distribution provides an adequate approximation to the distribution of x, what are the mean and variance of the approximating normal distribution?

c. Use Table I in Appendix D to find the exact value of P(x9).

d. Use the normal approximation to find P(x9).

Q97E

Page 262

Variable life insurance return rates. With a variable life insurance policy, the rate of return on the investment (i.e., the death benefit) varies from year to year. A study of these variable return rates was published in International Journal of Statistical Distributions (Vol. 1, 2015). A transformedratio of the return rates (x) for two consecutive years was shown to have a normal distribution, with =1.5 and role="math" localid="1660283206727" =0.2. Use the standard normal table or statistical software to find the following probabilities.

a.P(1.3<x<1.6)

b. P(x>1.4)

c. P(x<1.5)

Q98E

Page 263

Hotels鈥 use of ecolabels. Refer to the Journal of Vacation Marketing (January 2016) study of travelers鈥 familiarity with ecolabels used by hotels, Exercise 2.64 (p. 104). Recall that adult travelers were shown a list of 6 different ecolabels, and asked, 鈥淪uppose the response is measured on a continuous scale from 10 (not familiar at all) to 50 (very familiar).鈥 The mean and standard deviation for the Energy Star ecolabel are 44 and 1.5, respectively. Assume the distribution of the responses is approximately normally distributed.

a. Find the probability that a response to Energy Star exceeds 43.

b. Find the probability that a response to Energy Star falls between 42 and 45.

c. If you observe a response of 35 to an ecolabel, do you think it is likely that the ecolabel was Energy Star? Explain.

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