Probability Distribution Applications
1. Suppose a population consists of just four values 3, 5, 7, and 8. Compute (a) the population mean and (b) the
population standard deviation (c) the mean of sampling distribution of mean (d) find the standard error of mean if
the sample size is 2 for with and without replacement both
2. Let’s say that 80% of all business startups in the IT industry report that they generate a profit in their first year. If a
sample of 10 new IT business startups is selected, find the probability that exactly seven will generate a profit in their
first year. Find the probability that at least 4 will generate a profit in their first year.
3. For a particular brand of all TV picture tube, it is known that the mean operating life of the tubes is 9,000 hr. with a
standard deviation of 500 hr. Determine the expected value and standard error of the sampling distribution of the
mean given a sample size of 25 by with replacement.
4. According to a survey a university professor gets, on average, 7 emails per day. Let X = the number of emails a
professor receives per day.
a. What is the probability that an email user receives exactly 2 emails per day?
b. What is the probability that an email user receives at most 2 emails per day?
c. What is the standard deviation?
5. An auditor takes a random sample of size 36 from a population of size 1,000 accounts receivable. The mean value
of the accounts receivable for the population is $260.00, with the population standard deviation $45.00. (using with
replacement)
(a) What is the probability that the sample mean will be less than $250.00?
(b) What is the probability that the sample mean will be within $15.00 of the population mean?
6. A comparison of coffee prices at 4 randomly selected grocery stores in San Diego showed increases from the previous
month of 12, 15, 17, and 20 cents for a 1-pound bag. Find the: variance of this random sample of price increases
7. The mean selling price of senior condominiums in Green Valley over a year was $215,000. The population standard
deviation was $25,000. A random sample of 100 new unit sales was obtained.
a. What is the probability that the sample mean selling price was more than $210,000?
b. What is the probability that the sample mean selling price was between $213,000 and $217,000?
c. What is the probability that the sample mean selling price was between $214,000 and $216,000?
8. A bank expects to receive six bad checks per day, on average. What is the probability of the bank getting fewer than
five bad checks on any given day? Let X = the number of bad checks the bank receives in one day. Write a
mathematical statement for the probability question. Find the value of this probability
9. A broadcasting executive is reviewing the prospects for a new television series. According to his judgment, the
probability is 0.25 that the show will achieve a rating higher than 17.8, and the probability is 0.15 that it will
achieve a rating higher than 19.2. If the executive’s uncertainty about the rating can be represented by a normal
distribution, what are the mean and variance of that distribution?
10. A telephone number is selected at random from a directory with the assumption that the last digit are equally likely
to draw. Suppose X denote the last digit of selected telephone number. Find the probability that the last digit of the
selected number is
a. 6 b. less than 3 c. greater than or equal to 8
ANSWERS
1. Mean 5.75, SD=1.92, mean of sampling dist of mean 5.75, SE= 1.11 (with fpc)
2. a. 0.2013
3. E(sample means)=9000 SE=100
4. 0.022, 0.029, 2.65
5. 260, 7.5, 0.0918, 0.9544
6.
7. a. 0.9772 b. 0.5763 c) 0.3108
8.
9. 15.265, 14.313
10. 0.1, 0.3, 0.2
