Inverse probability based on the normal distribution.
1. In a random sample of eight military contracts involving cost overruns, the following information was obtained. x = big price of the contract (in millions of dollars) and y = cost of overrun (expressed as a percent of the bid price).
|
x
|
6
|
10
|
3
|
5
|
9
|
18
|
16
|
21
|
|
y
|
31
|
25
|
39
|
35
|
29
|
12
|
17
|
8
|
If an overrun contract was bid at 12 million dollars, what does the least-squares line calculate for the cost of overrun (as a percent of bid price)?
2. Let x be a random variable that represents the length of time it takes a student to write a term paper for Dr. Adam's Sociology class. After interviewing many students, it was found that x has an approximately normal distribution with mean μ = 6.8 hours and standard deviation σ = 2.1 hours. 0 ≤ z ≤ 2