1. The weight of an object, measured to the nearest gram, is an example of

a. a contmuous random variable

b. adiscrete random variable

C. either a continuous or a discrete random variable, depending on the weight of the object

d. either a continuous or a discrete random variable depending on the units of measurement

2. Suppose you have the opportunity to make a $1,000 short term investment in a business venture. There is a 40% chance that the gain from the investment will be $1,200, a 30% chance that you will just get your money back, and a 30% chance that you will loose everything including your original $1,000 investment. Should you take this investment or pass on it? Explain.

3. Only 0.02% of credit card holders of a company report the loss or theft of their credit cards each month. The company has 15,000 credit cards in the city of Memphis. What is the expected number of reported lost or stolen credit cards in the city of Memphis next month?

4. John parks cars at a hotel. On the average, seven cars will arrive in an hour. Assume that a driver's decision on whether to let John park the car does not depend upon any other person's decision. Define the random variable x to be the number of cars arriving in any thirty minute period. Compute the probability that no more than 3 cars will arrive in the next thirty minute period.

5. If Z is a standard normal random variable, find the value z for which: P (Z>z) = 0.24

Answer rating: 100% (QA)

Answer Solution 1 b Adiscrete random variable 2 iNet gain 0401... View the full answer