QAM tutorial session

Section B and C
1. During a socio-economic survey conducted in a rural area, the concerned
authorities came to the conclusion that mean level of income in the area was Rs
150 per month with a standard deviation of Rs 20 and that income is
approximately normally distributed. The total population of the area was 4000.
Compute the number of people who fell into the following categories:
(i) monthly income less than Rs 125
(ii) monthly income greater than Rs 100 but less than or equal to Rs 150.
(iii) monthly income greater than Rs 200.
2. The demand of a product is observed to vary from one quarter to the other. The demand of
each quarter can be assumed to follow a normal distribution with means and standard
deviations given below:
Quarter Mean Standard Deviation
1 300 10
2 250 10
3 400 13
4 450 15

What is the probability that the annual demand will be more than 1450 units? Demands in the
four quarters are independent.
3. Suppose taxicab arrivals from 3 to 5 p.m. follow a Poisson process. If the cabs
arrive at an average rate of 18 per hour,
(a) what is the probability that a person will have to wait up to 5 minutes for cab?
(b) What is the probability that a person will have to wait between 5 and 10
minutes for cab?
4. A graduating student keeps applying for jobs until she gets an offer. The
probability of getting an offer at any attempt is 0.35
a) What is the expected no of applications?
b) If she has enough time to complete at most 4 applications, how confident can
she be of getting an offer within the available time?
c) If she wants to be at least 95%confident of getting an offer, how many
applications should she prepare
6. A financial analyst is interested to calculate the correlation coefficient (r)
between the return of two stocks ‘A’ and ‘B’. She has however limited information
given below on the difference of returns(in hundreds of rupee) for the two stocks
for last ten quarters.
15 13 14 11 12 19 17 20 25 22

She has enough reasons to believe that S.D. of returns of both the stocks are equal
to RS. 6 . With this available limited information, how can she, if possible, work out
the value of ‘r’
7. Suppose a mathematician carries two matchboxes at all times: one in his left
pocket and one in his right.
Each time he needs a match, he is equally likely to take it from either pocket.
Suppose he reaches into his pocket and discovers for the first time that the box
picked is empty.
If it is assumed that each of the matchboxes originally contained 50 matches, what
is the probability that there are exactly 10 matches in the other box?
8. A bowl contained 10 chips, out of which 8 are marked $2 each and 2 are marked
$ 5 each. Let a person choose, at random and without replacements, 3 chips from
the bowl. If the person is to receive the sum of the resulting amounts find his
expected gain