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MISCELLANEOUS PROBLEMS
1.
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.
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?