practiceproblemsforpartii.docVIP

Practice Problems for Part II 1. A fund manager is considering investment in the stock of a health care provider. The managers assessment of probabilities for rates of return on this stock over the next year are summarized in the accompanying table. Let A be the event Rate of return will be more than 10% and B the event Rate of return will be negative. RATE OF RETURN Less than - 10% - 10% to 0% 0% to 10% 10% to 20% More than 20% PROBABILITY .04 .14 .28 .33 .21 Find the probability of event A. Find the probability of event B. Describe the event that is the complement of A. Find the probability of the complement of A. Describe the event that is the intersection of A and B. Find the probability of the intersection of A and B. Describe the event that is the union of A and B. Find the probability of the union of A and B. Are A and B mutually exclusive? Are A and B collectively exhaustive? 2. A manager has available a pool of eight employees who could be assigned to a project-monitoring task. Four of the employees are women and four are men. Two of the men are brothers. The manager is to make the assignment at random, so that each of the eight employees is equally likely to be chosen. Let A be the event chosen employee is a man and B the event chosen employee is one of the brothers. Find the probability of A. Find the probability of B. Find the probability of the intersection of A and B. Find the probability of the union of A and B. 3. A department store manager has monitored the numbers of complaints received per week about poor service. The probabilities for numbers of complaints in a week, established by this review, are shown in the table. Let A be the event There will be at least one complaint in a week, and B the event There will be less than 10 complaints in a week. NUMBER OF COMPLAINTS 0 1-3 4-6 7-9 10-12 More than 12 PROBABILITY .14 .39 .23 .15 .06 .03 Find the probability of A. Find the probability of B. Find the probability of the complement of A. Find