Sample_Prelim_Exam2_Solutions1

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Math 147 B - Sample Prelim Exam 2, Fall 2023 Honor Code: I have neither given nor received aid on this exam. I understand that violation of this statement or the Binghamton code of academic integrity is punished at minimum with failure of the course. Printed Name: Signature: Student ID: Instructions: You may bring in a single sheet of paper with formulas etc., and a basic calculator. No cell phones, computers or other devices with a communication capability. The exam consists of x sides (?? sheets), which includes this side of instructions, ?? sides of questions, ?? sides with the standard Normal tables. For numeric answers give either decimals with three significant figures or simplified fractions unless otherwise specified in the question. Hand in all pages of the exam, but not your formula sheet or scrap paper. Question Points Out of 1 20 2 20 3 20 4 20 5 20 1
1. An airline offers discounted “advance-purchase” fares to customers who buy tickets more than 30 days before travel and charges “regular” fares for tickets purchased during those last 30 days. The company has noticed that 60% of its customers take advantage of the advance-purchase fares. The “no-show” rate among people who paid regular fares is 30%, but only 5% of customers with advance-purchase tickets are no-shows. i) What percent of all ticket holders are no-shows? ii) What is the probability that a customer who didn’t show had an advance-purchase ticket? iii) Is being a no-show independent of the type of ticket a passenger holds? Explain. i) To find this, we compute a tree diagram: We can conclude that P (no show) = P (regular and no show) + P (Advance and no show)=0 . 4 · 0 . 3 + 0 . 6 · 0 . 05 = 0 . 15 = 15% of all ticket holders are no-shows. ii) This is just P (advance purchase | no show) = P (advance purchase and no show) /P ( no show) = 0 . 03 / (0 . 15) = 0 . 20 iii) No, because P (advance purchase | no show) = 0 . 2 ̸ = 0 . 6 = P (advance purchase), which is a necessary condition for independence of these two. P (advance purchase | no show) = P (advance purchase) is false, but it must hold for independence 2. The price of a particular asset today is 100. There is a 50/50 chance that its price the next day will either go up or down by 10. i) Create a probability model for the price of the asset in two days. ii) Find the expected price of the model in two days. iii) Do you expect to gain, lose, or stay the same, on average? iv) Find the standard deviation of the price of the model in two days. i) x P(X=x) 120 .25 80 .25 100 .5 2
ii) E [ X ] = 120( . 25) + 80( . 25) + 100( . 5) = 100 iii) We expect the price to stay the same on average iv) V [ X ] = (120 100) 2 ( . 25) + (80 100) 2 ( . 25) + (100 100) 2 ( . 5) = 200 SD ( X ) = 200 = 14 . 14 3. Neurological research has shown that in about 80% of people, language abilities reside in the brains left side. Another 10% display right-brain language centers, and the remaining 10% have two-sided language control. (The latter two groups are mainly left-handers; Science News, 161 no. 24 [2002].) i) In a randomly assigned group of 5 of these students, what’s the probability that no one has two-sided language control? ii) In the entire freshman class of 1200 students, how many would you expect to find of each type? iii) What are the mean and standard deviation of the number of these freshmen who might be left-brained in language abilities? iv) In the entire freshman class of 1200 students, what is the probability that no more than 720 of them have left-brain language control? Justify and use a Normal model. i) Let T be the number of people with two-sided language control from n = 5 people. T follows a Binom(5 , 0 . 10) distribution and, hence P (none have two-sided language control) = P ( T = 0) = 5 C 0(0 . 1) 0 (0 . 9) 5 = (0 . 9) 5 0 . 590 ii) Use Binomial models: E (left) = np L = 1200(0 . 80) = 960 people E (right) = np R = 1200(0 . 10) = 120 people E (two-sided) = np T = 1200(0 . 10) = 120 people. iii) Let L be the number of people with left-brain language control. E ( L ) = np L = 1200(0 . 80) = 960 people and SD ( L ) = p np L ( q L ) = p 1200(0 . 80)(0 . 20) = 13 . 86 people. iv) Since np L = 960 and nq L = 240 are both greater than 10, the Normal model, N(960 , 13 . 86), may be used to approximate Binom(1200 , 0 . 80). We are looking for P ( L 720) = P Z 720 960 13 . 86 = P Z 720 960 13 . 86 = P ( Z ≤ − 17 . 32) 0 3
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