2. During the summer months, a rental agency keeps track of the number of speedboats rented each day during a period of 90 days. The variable X represents the number of speedboats rented per day. The results are shown as follow. Number of days 45 30 15 Compute probability P(X) for each X 1.
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- Let X and Y be two binary, discrete random variables with the following joint probability mass functions. (a) Compute P(X = 0]Y = 1). (b) Show that X and Y are not statistically independent. P(X = 0, y = 1) = P(X = 1, Y = 0) = 3/8 P(X = 0, y = 0) = P(X = 1, Y = 1) = 1/8Please solve the following problem. Quiz = Pass Quiz = Fail AI = Fail 0.1 0.2 AI = Pass 0.6 0.1 Mid = Pass Mid = Fail AI = Fail 0.2 0.2 AI = Pass 0.5 0.1 Suppose you have three events AI Grade, Quiz, and Mid. Here each event has two possible outcomes, either pass or fail. Additionally, given that AI Grade is observed, Quiz and Mid become independent of each other. Also, out of every 100 students, 30 students fail the AI course. Now, using the joint probability tables given, calculate P(AI Grade=Pass, Quiz=Fail, Mid=Fail).Assume that, with probability 0.8, It’s going to snow and/or I’m going to stay at home; and with probability 0.7, when it snows, then I stay at home. What is the probability of being truth that I am going to stay at home?
- At the beginning of each year, a firm observes its asset position (call it d) and may invest any amount x (0 <=x <=d) in a risky investment. During each year, the money invested doubles with probability p and is completely lost with probability 1 - p. Independently of this investment, the firm’s asset position increases by an amount y with probability qy (y may be negative). If the firm’s asset position is negative at the beginning of a year, it cannot invest any money during that year. The firm initially has $10,000 in assets and wants to maximize its expected asset position ten years from now. Formulate a dynamic programming recursion that will help accomplish this goal.For the Covid-19 pandemic, let’s make the following assumptions: (i) the natural infection rate is 20% (i.e., a person who is not vaccinated has 20% chance of being infected); (ii) the vaccine is 90% effective at preventing Covid-19 infection (i.e., a vaccinated person has only 2% chance of being infected); (iii) the probability of a random person being vaccinated is 60%. Without knowing whether or not a person is vaccinated, what is the probability that this person will be infected? Given that a person is infected, what is the conditional probability that this person is vaccinated?Consider two defaultable 1-year loans with a principal of $1 million each. The probability of default on each loan is 2.5%. Assume that if one loan defaults, the other does not. Assume that in the event of default, the loan leads to a loss that can take any value between $0 and $1 million with equal probability, i.e., the probability that the loss is higher than $ ? million is 1 − ?. If a loan does not default, it yields a profit equal to $20,000. Compute the 1-year 98% Value at Risk (VaR) and Expected Shortfall (ES) of a single loan.
- A nine character long password is to be created using lower-case letters, four special characters {!, @, #, $} and digits. For the password to be valid, it must contain at least one lower-case letter, one of the given special characters and one digit. What is the probability that a randomly generated nine character password is valid? Assume that the password is generated using only the lower-case letters, the given special characters and digitsSuppose that the length of a phone call in minutes is an exponential random variable with parameter λ=1/10. If someone arrives immediately ahead of you at a public telephone booth, find the probability that you will have to wait, (a) More than 10 minutes (b) Between 10 and 20 minutesA state university desires to accept only the top 15% of all graduating seniors who took their entrance test. This test has a mean of 500 and a standard deviation of 100. Assume the variable is normally distributed Find the probability that a person selected at a random will get a score greater than the mean of 500 but will not admitted to the university 15% 25% 35% 85% Find the cutoff score for the test 600 460 640 800 Which of the following statements about the normal curve is false? All variables that are approximately normally distributed can be transformed into standard normal variables The total area under the normal distribution is one The standard normal distribution is unimodal The normal distribution is a continuous random probability distribution
- Let X be a continuous random variable denoting the time to failure of a component. Suppose the distribution function of X is F(x). Use this distribution function to express the probability of the following events: 10<X<100. X<100 X>100, given that X>10.At QT Sugar factory the amounts which go into bag of sugar are supposed to be normally distributed with mean 36 kg and standard deviation 0.1 kg. Once every 30 minutes a bag is selected from the production line, and its contents are noted precisely. If the amount of the bag goes below 35.8 kg or above 36.2 kg, then the bag will be declared out of control. a) If the process is in control, meaning u = 36 kg and o= 0.1 kg, find the probability that the bag will be declared out of control. b) In the situation of (a), find the probability that the number of bag found out of control in an eight-hour day (16 inspections) will be zero. c) In the situation of (a), find the probability that the number of bag found out control in an eight- hour day (16 inspections) will be exactly one. d) If the process shifts so that u =37 kg and o=0.4 kg find the probability that a bag will be declared out of control.A particular telephone number is used to receive both voice calls and fax messages. Suppose that 20% of the incoming calls involve fax messages, and consider a sample of 20 incoming calls. (Round your answers to three decimal places.) (a) What is the probability that at most 6 of the calls involve a fax message?(b) What is the probability that exactly 6 of the calls involve a fax message?(c) What is the probability that at least 6 of the calls involve a fax message?(d) What is the probability that more than 6 of the calls involve a fax message?