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Probability Problems and Expected Values

This document contains 6 probability word problems involving situations like the probability of a man and wife being alive at 65 years, the probability of car maintenance options being checked, the probability of defect types in gaskets, the expected profit of a new product, the expected profit of a coat company, and whether to purchase an extended warranty based on probability and costs of potential expenses.

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Sunil Kesarwani
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113 views6 pages

Probability Problems and Expected Values

This document contains 6 probability word problems involving situations like the probability of a man and wife being alive at 65 years, the probability of car maintenance options being checked, the probability of defect types in gaskets, the expected profit of a new product, the expected profit of a coat company, and whether to purchase an extended warranty based on probability and costs of potential expenses.

Uploaded by

Sunil Kesarwani
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

Problem-1

Probability that a man will be alive 65 years


is 0.3 and his wife will be alive 65 years
is 0.4. Find the probability that
a. Both will be alive 65 years
b. Only man will be alive
c. None will be alive
d. Atl east one of them will be alive
Problem-2
The probability that a person stopping at a petrol
pump will get his tyres checked is 0.12, the
probability that he will get his oil checked is
0.29 and that he will get both checked is 0.07.
a. What is the probability that a person stopping
at this pump will neither his oil nor tyres
checked.
b. What is the probability that a person has his
tyres checked amongst the person who have
checked for oil ?
Problem-3
A box of100 gaskets contains 10 gaskets
with type A defect, 5 gaskets with type B
defect and 2 gaskets with both types of
defects. Find the probability that
a. A gasket drawn will have type B defect
from gaskets of type A defect.
b. A gasket drawn will have no type B
defect from gaskets of no type A defect.
PROBLEM-4
A company estimates the net profit on a new
product it is lunching to be Dhs. 3,000/- during
the first year if it is successful ;Dhs. 1,000/- if it is
moderately successful and a loss of Dhs.
1000/- , if it is unsuccessful .The company
assigns the probabilities to first year prospects
for the product . Successful:0.15 , moderately
successful :0.25 . What is the expected value
and standard deviation of first year net profit for
this product .
Problem-5
A survey conducted over the last 25 years
indicated that in 10 years ,the winter was mild ,
in 8 years it was cold and in the remain years , it
was very cold . A company sells 1000 woolen
coats in a mild year ,1300 in a cold year and
2000 in a very cold year . Find the yearly
expected profit of the company , if a woolen coat
costs Dhs. 1730/- was sold for Dhs.2480/- on an
average .
Problem-6
Bill Johnson just bought a VCR from Jims Videotape
Service at a cost of $300. He now has the option of
buying an extended service warranty offering of 5
years of coverage for $100. After talking to friends and
reading reports, Bill believes the following maintenance
expenses could be incurred during next five years:
Expense: 0 50 100 150 200 250 300
Probability: .35 .25 .15 .10 .08 .05 .02
Should Bill pay $100 for the warranty?

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