Statistics for Managers - Using Microsoft Excel, 9th edition, by David Levine, David Stephan & Kathryn Szabat,

Given the probability distributions shown to theright, complete the following parts. a. What is the expected value for each distribution. b. Compute the standard deviation for each distribution. c. What is the probability that x will be at least 3 in Distribution A and DistributionB? d. Compare the results of distributions A and B.		Distribution A	Distribution B
xi	P(X=xi)	xi	P(X=xi)
0	0.03	0	0.49
1	0.09	1	0.24
2	0.15	2	0.15
3	0.24	3	0.09
4	0.49	4	0.03

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Part 1

a. What is the expected value for distributionA?

=

(Type an integer or decimal rounded to three decimal places asneeded.)

Part 2

What is the expected value for distributionB?

=

(Type an integer or decimal rounded to three decimal places asneeded.)

Part 3

b. What is the standard deviation for distributionA?

=

(Type an integer or decimal rounded to three decimal places asneeded.)

Part 4

What is the standard deviation for distributionB?

=

(Type an integer or decimal rounded to three decimal places asneeded.)

Part 5

c. What is the probability that x will be at least 3 in DistributionA?

P(x3)=

(Type an integer or a decimal. Do notround.)

Part 6

What is the probability that x will be at least 3 in DistributionB?

P(x3)=

(Type an integer or a decimal. Do notround.)

Part 7

d. Use these results to compare distribution A and distribution B.

A.

Distribution A issymmetric, distribution B is

right-skewed.

B.

Distribution A is

left-skewed,

distribution B is symmetric.

C.

Distribution A is

right-skewed,

distribution B is

left-skewed.

D.

Distribution A issymmetric, distribution B is symmetric.

E.

Distribution A is

left-skewed,

distribution B is

right-skewed.

2.

Part 1

The following table contains the probability distribution for the number of traffic accidents daily in a small town. Complete parts(a) through(c) below.

Number of Accidents Daily(X)	P(X=xi)
0	0.24
1	0.29
2	0.19
3	0.11
4	0.07
5	0.06
6	0.04

Part 1

a. Compute the mean number of accidents per day.

=

(Type an integer or a decimal. Do notround.)

Part 2

b. Compute the standard deviation.

=

(Type an integer or decimal rounded to three decimal places asneeded.)

Part 3

c. What is the probability that there will be at least 2 accidents on a givenday?

P(x2)=

(Type an integer or a decimal. Do notround.)

Question 3

Part 1

The manager of the commercial mortgage department of a large bank has collected data during the past two years concerning the number of commercial mortgages approved per week. The results from these two years (104 weeks) are shown to the right. a. Compute the expected number of mortgages approved per week. b. Compute the standard deviation. c. What is the probability that there will be more than one commercial mortgage approved in a givenweek?

Number Approved	Frequency
0	13
1	26
2	32
3	16
4	8
5	7
6	1
7	1

a. The expected number of mortgages approved per week is

(Round to three decimal places asneeded.)

Part 2

b. The standard deviation is

.

(Round to three decimal places asneeded.)

Part 3

c. The probability that there will be more than one commercial mortgage approved in a given week is

(Round to three decimal places asneeded.)

Question

You are trying to develop a strategy for investing in two different stocks. The anticipated annual return for a$1,000 investment in each stock under four different economic conditions has the probability distribution shown to the right. Complete parts(a) through(c) below.

		Returns
Probability	Economic Condition	Stock X	Stock Y
0.1	Recession	120		100
0.2	Slow growth	50		30
0.4	Moderate growth	150		90
0.3	Fast growth	210		160

Part 1

a. Compute the expected return for stock X and for stock Y.

The expected return for stock X is

(Type an integer or a decimal. Do notround.)

Part 2

The expected return for stock Y is

(Type an integer or a decimal. Do notround.)

Part 3

b. Compute the standard deviation for stock X and for stock Y.

The standard deviation for stock X is

(Round to two decimal places asneeded.)

Part 4

The standard deviation for stock Y is

(Round to two decimal places asneeded.)