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cannot be predicted with certainty, however,
the list of all possible outcomes is known in
advance. Such an experiment is called a
random statistical experiment.The
experiment.The list of all
possible outcomes in a statistical experiment
is called the sample space.
space.

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MISCELLANEOUS PROBLEMS
1.

The Ourman-Friday Employment Agency specializing in clerical and secretarial help


classifies candidates in terms of primary skills and years of experience. The skills are
bookkeeping, reception, and word processing. (We will assume that no candidate is
proficient in more than one skill) Experience categories are less than one year, one to
three years, and more than three years. There are 100 persons currently on fine, and their
skills and experience are summarized in the following table.
Skill
Experience
Bookkeeping (D) Reception (E) Word Processing (F) Total
Less than 1 year (A)
15
5
30
1 3 years (B)
5
10
5
More than 3 years (C)
5
15
10
Total
100
Suppose a persons file is selected at random. Write the correct symbols for the following
and determine
(a) what is the probability her skill is bookkeeping given that she has less than 1 year of
experience? Show complete solutions.
(b) what is the probability that her skill is word processing or has more than 3 years work
experience? Show complete solutions.

2.

The following table gives numbers of claims at a large insurance company by kind and
by geographical region.
East
South
Midwest
West
Hospitalization
75
128
29
52
Physicians Visit
233
514
104
251
Outpatient Treatment
100
326
65
99
If a bill is chosen at random,
(a)
what is the probability that it is either for Hospitalization or from the West?

(b)
3.

what is the probability that it is for outpatient treatment, given that it is from the
East?

The weather bureau predicts that the probability that it will rain is 0.8, the probability that
there will be a change in wind direction is 0.6, and the probability that it will rain and
there will be a change in the wind direction at the same time is 0.48.
(a) Are the two events independent? Justify your answer using the definition of statistical
independence.
(b) Find the probability that there is neither rain nor change in the wind direction.

4. An industrial firm uses 2 local hotels to provide overnight accommodations for its clients.
35% of all clients are assigned rooms at the Ramada Hotel (R). Of the clients that are
assigned to the Ramada Hotel, 40% extend their stay on personal expense (E); 60% of the
clients that stay at the Howard Johnson extend their stay on personal expense.
(a)
Complete the following joint tabulation and write down the correct probability
symbols for each entry.

Extends Stay on Personal Expense?


Yes (E)
No
Total
Accommodation
Ramada Hotel (R)
Howard Johnson
Total
1.0
(b)
A client of the industrial firm is randomly selected. If he did not decide to extend
his stay, what is the probability that he was assigned accommodation at the Howard
Johnson Hotel?
5.

The owner of Petroleum Entrepreneurship is a wildcatter who judges that there is a 30%
chance of oil (O) beneath his leasehold on Fossil Ridges, with complementary chances
that the site is dry. The wildcatter has the option of drilling now or ordering a seismic
survey. Such a test is 90% reliable in predicting favorable (F) when there is actually oil,
but only 70% reliable in providing an unfavorable forecast when a site is dry.
(a)
Complete the following joint tabulation and write down the correct probability
symbols for each entry.
Survey Results
Geology
Favorable (F)
Unfavorable
Total
Oil (O)
Dry
Total
1.0
(b)
Suppose that the owner has decided to order the seismic survey and the survey
results show a favorable outcome. What is the probability that he will strike oil when he
drills?

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