East West University
Department of Economics
ECO 104.9; Spring’ 2023
Assignment III
(Instructor: Sayeeda Jahan)
1. Three students scheduled interviews for summer employment at the BRAC Institute. In each case
the interview results in either an offer for a position or no offer. Experimental outcomes are defined
in terms of the results of the three interviews.
a. List the experimental outcomes.
b. Define a random variable that represents the number of offers made. Is the random
variable continuous?
c. Show the value of the random variable for each of the experimental outcomes.
(6 marks)
2. Airline passengers arrive randomly and independently at the passenger-screening facility at a
major international airport. The mean arrival rate is 10 passengers per minute.
a. Compute the probability of no arrivals in a one-minute period.
b. Compute the probability that three or fewer passengers arrive in a one-minute period.
c. Compute the probability of no arrivals in a 15-second period.
d. Compute the probability of at least one arrival in a 15-second period.
(8 marks)
3. The random variable x is known to be uniformly distributed between 10 and 20.
a. Show the graph of the probability density function.
b. Compute P(x < 15).
c. Compute P(12 ≤ x ≤ 18).
d. Compute E(x).
e. Compute Var(x).
(10 marks)
4. Draw a graph for the standard normal distribution. Label the horizontal axis at values of
−3, −2, −1, 0, 1, 2, and 3. Then use the table of probabilities for the standard normal distribution
inside the front cover of the text to compute the following probabilities.
a. P(z ≤ 1.5)
b. P(1 ≤ z ≤ 1.5)
c. P(-3< z < -2.5)
(6 marks)
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5. A sample of 5 months of sales data provided the following information:
Month: 1 2 3 4 5
Units Sold: 94 100 85 94 92
a. Develop a point estimate of the population mean number of units sold per
month.
b. Develop a point estimate of the population standard deviation.
(4 marks)
6. A survey question for a sample of 150 individuals yielded 75 Yes responses, 55 No
responses, and 20 No Opinions.
a. What is the point estimate of the proportion in the population who respond
Yes?
b. What is the point estimate of the proportion in the population who respond
No?
(4 marks)
7. A population has a mean of 200 and a standard deviation of 50. A sample of size
100 will be taken and the sample mean x will be used to estimate the population
mean.
a. What is the expected value of x̅ ?
b. What is the standard deviation of x̅ ?
c. Show the sampling distribution of x̅ .
d. What does the sampling distribution of x̅ show?
(8 marks)
8. A sample of size 100 is selected from a population with p = .40.
a. What is the expected value of p̅ ?
b. What is the standard error of p̅ ?
c. Show the sampling distribution of p̅ .
d. What does the sampling distribution of p̅ show?
(4 marks)
(All the best!)
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