FCM2063/FDM2063 PROBABILITY AND STATISTICS

CHAPTER 3_ (Tutorial 3)

ACTIVE LEARNING (PAIR WORK)

1. At UTP, the business students run an investment club. Each semester they
create investment portfolios in multiples of RM1,000 each. Records from the past
several years show the following probabilities of profits (rounded to the nearest
RM50). In the table below, x = profit per RM1, 000 and P(x) is the probability of
earning that profit.
x 0 50 100 150 200

0.15 0.35 k 0.2 0.05

i. Determine the value of k that results in a valid probability distribution.

ii. The profit per RM1, 000 is a random variable. Is it discrete or continuous?
Explain.
iii. Find the expected value of the profit in a $1,000 portfolio.
iv. Find the standard deviation of the profit.
v. What is the probability of a profit of $150 or more in a RM1, 000 portfolio?

2. The output of a chemical process is continually monitored to ensure that the

concentration remains within acceptable limits. Whenever the concentration drifts
outside the limits, the process is shut down and recalibrated. Let x be the number
of times in a given week that the process is calibrated. The probability mass
function f (x) is given below.

x 0 1 2 3 4
f (x) 0.17 0.36 k 0.13 0.03
 i. Determine the value of k that results in a valid probability distribution.
ii. Find the mean of x and the variance of x.
iii. What is the probability that the process is recalibrated fewer than two
times during a week?

3. Let X be a continuous random variable with pdf given by

k (1 x ) , 1 x 1
f ( x)
0 , elsewhere

Find

i. the value of constant k;

ii. P(X < 0.5);
iii. the mean of X and the standard deviation of X;
iv. the cumulative distribution function of X.

4. Let X be a continuous random variable with pdf given by

kx2 ,0 x 3
f ( x)
0 , elsewhere
Find

i. the value of constant k;

ii. the cdf, F(x);
iii. P(X >1)
iv. the mean of X and the variance of X.

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RR/Tut. 3_May_2017