Discuss the following:
Q1:Given the following contingency table:
Find the following:
a) A | B
b) A ' | B ‘
(+) c) A | B ‘
Q2: The manager of a large computer network has developed the following probability distribution of the number of interruptions per day:
Interruptions (X) P(X)
0 0.32
1 0.35
2 0.18
3 0.08
4 0.04
5 0.02
6 0.01
a. Compute the expected number of interruptions per day
Q3: Two investments, X and Y, have the following characteristics:
E(X) = $50, E(Y) = $100, s2X = $9,000, s 2y = $15,000, and s 2XY = $7,500.
If the weight of portfolio assets assigned to investment X is 0.4, compute the
a. portfolio expected return
E(P)=w(X)E(x)+(1-w(X))E(Y)
s2x $9,000
s2y $15,000
s2xy $7,500
E(X) $50
E(Y) $100
w(x) 0.4
b. portfolio risk
Q4:Assume a Poisson distribution.
a. If lamda = 2, find P( X >= 2 )
Q5: Given a standardized normal distribution (with a mean of 0 and a standard deviattion of 1), what is the probability that:
a. Z is less than 1.57 ?
b. Z is greater than 1.84 ?
c. Z is between 1.57 and 1.84 ?
Q6: Given a normal distribution with mean = 100 and standard deviation = 10, what is
a. P( X > 75 ) μ= 100
b. P( X < 70 ) σ = 10