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ISOM 2500(L2) Homework 2

Due date: Oct 8, 2015 Before 5pm


Hand in box number: #550, LSK4F
(Next to room 4084)

Total : 60 pts

Problem 1
We have two categorical variables: spam and number that describes whether an email
contains no numbers, only small numbers, or one big number. (8%)

Table 1: A contingency table for spam and number


(a)Among the spam emails, what is the proportion that had a small number?
(b) Among the non-spam emails, what is the fraction that had a big number?

Problem 2
After the collapse of the stock market in October 1987, Business Week polled its readers and
asked weather they expected another big drop in the market during the next 12 months. The data
table for this question has two variables. One indicates whether the reader owns stock and the
others gives the anticipated chance for another drop. (6%)
(a) Check this contingency table defined by stock ownership and the anticipated chances for a
big drop in the market. Please find the marginal distributions.

Very
likely
Somewhat
likely
Not very
likely
Not likely
at all
Unsure

Stockholders

Non stockholders

18

26

41

65

52

68

19

31

13

(b) Did stockholders think that a drop was either somewhat likely or very likely?
(c) Did non-stockholders think that a drop was either somewhat likely or very likely?
1

Problem 3
This table summarizes the status of 1,000 loans made by a bank. Each loan either
ended in default or was repaid. Loans were divided into large (more than $50,000)
or small size. (4%)

Large

Repaid
40

Default
10

Small

930

20

(a) What would it mean to find association between these variables?


(b) Does the table show association? (You should not need to do much calculation)

Problem 4
Represent each of the following sets by completing the Venn diagram. (4%)
(a)
A = e, p, r, z
(b) C = 2, 5, 8, 11, 15
B = m, e, q
D = 8, 15
U

U
B

m
q

8
15

Problem 5
Consider the midterm and final for a statistics class. Suppose 13% of students earned an A on the
midterm. Of those students who earned an A on the midterm, 47% received an A on the final,
and 11% of the students who earned lower than an A on the midterm received an A on the final.
You randomly pick up a final exam and notice the student received an A. What is the probability
that this student earned an A on the midterm? (5%)

Problem 6
A fair dice is thrown. What is the probability of getting an even number or a 5?
A.
C.

1
2
2
3

B.
D.

1
6
1
3

(8%)

Problem 7
The following table shows the favorite fruits of a group of 40 students. Each student
can only choose one fruit. (5%)
Fruit

Orange

Apple

Mango

Banana

Watermelon

Frequency

12

A student is randomly chosen. Find the probability that the favorite fruit of the
student chosen is neither apple nor watermelon.
A.
C.

3
8
21
40

B.
D.

3
20
5
8

Problem 8
Let Y be a discrete random variable with its probability distribution summarized below.

(a) Find the mean of Y, E[Y].


(b)Find the variance of Y, Var(Y).
(c) Find the mean of 24Y, E[24Y].
(d)Find the variance of 24Y, Var(24Y).

Problem 9 (8%)
The Binomial distribution of a random variable X is given by
P(X = x) = C10x (0.1) x (0.9)10 x for x = 0, 1, 2, , 10.
(a) Find P(X = 3).
(b) Find P(X > 2).
(c) Find P(1 < X < 4).
(d) Find P(X < 3 or X 5).
(Give the answers correct to 3 significant figures.)

(8%)

Problem 10 (4%)
X is a random variable where X ~ Binomial (7, p). If the mean of the distribution is 0.98, find
(a) the value of p,
(b) the variance of the distribution.