Problem 3. The average number of thefts at LeBow is three per month. (a) Estimate the...

Problem 3.

The average number of thefts at LeBow is three per month. (a) Estimate the probability, p, that at least six thefts occur at LeBow during December. (What inequality are you using?)

(b) Assume now (for parts (b), (c), and (d)) that you are told that the variance of the number of thefts at LeBow in any one month is 2. Now give an improved estimate of p (using an inequality).

(c) Give a Central Limit Theorem estimate for the probability q that during the next 5 years (12 months per year) there are more than 150 thefts at LeBow.

(d) Use an inequality to get the best bounds you can on the probability q estimated in part (c).

Expert Solution

Answer:

milcah answered 9 months ago

If the average inventory is 4,000 units and the number of units ordered per month is...

If the average inventory is 4,000 units and the number of units ordered per month is 15,000, compute the number of orders per month. Round to two decimals.

A hotel chain wants to estimate the average number of rooms rented daily in each month....

A hotel chain wants to estimate the average number of rooms rented daily in each month. The population of rooms rented daily is assumed to be normally distributed for each month with a standard deviation of 24 rooms. During January, a sample of 16 days has a sample mean of 48 rooms. This information is used to calculate an interval estimate for the population mean to be from 40 to 56 rooms. What is the level of confidence of this...

Using the stock prices in Problem 3, calculate the exponential three-month moving average for both stocks...

Using the stock prices in Problem 3, calculate the exponential three-month moving average for both stocks where two-thirds of the average weight is placed on the most recent price. Amazon Google $169.64 $600.36 $173.29 $613.40 $180.13 $586.76 $195.81 $544.10 $196.69 $529.02 $204.49 $506.38 $222.52 $603.69 $215.23 $540.96 $216.23 $515.04 $213.51 $592.64 $192.29 $599.39 $173.10 $645.90

We wish to estimate the average number of heartbeats per minute for a certain population. The...

We wish to estimate the average number of heartbeats per minute for a certain population. The average number of heartbeats per minute for a sample of 64 subjects was found to be 80. Assume that these 64 patients constitute a random sample, and that the population is normally distributed with a standard deviation of 9. (a) Construct a 95% confidence interval for µ. (b) Find the width of a 95% confidence interval for µ. (c) What would be the sample...

In order to estimate the average electric usage per month, a sample of 47 houses were...

In order to estimate the average electric usage per month, a sample of 47 houses were selected and the electric usage determined. The sample mean is 2,000 KWH. Assume a population standard deviation of 142 kilowatt hours. At 90% confidence, compute the margin of error? In order to estimate the average electric usage per month, a sample of 46 houses were selected and the electric usage determined. The sample mean is 2,000 KWH. Assume a population standard deviation of 127...

In order to estimate the average electricity usage per month, a sample of 40 residential customers...

In order to estimate the average electricity usage per month, a sample of 40 residential customers were selected, and the monthly electricity usage was determined using the customers' meter readings. Assume a population variance of 12,100kWh2. Use Excel to find the 98% confidence interval for the mean electricity usage in kilowatt hours. Round your answers to two decimal places and use ascending order. Electric Usage 765 1139 714 687 1027 1109 749 799 911 631 975 717 1232 806 637...

In order to estimate the average electricity usage per month, a sample of 125 residential customers...

In order to estimate the average electricity usage per month, a sample of 125 residential customers were selected, and the monthly electricity usage was determined using the customers' meter readings. Assume a population variance of 12,100kWh2. Use Excel to find the 98% confidence interval for the mean electricity usage in kilowatt hours. Round your answers to two decimal places and use ascending order. Electric Usage 765 1139 714 687 1027 1109 749 799 911 631 975 717 1232 806 637...

The three-month dollar interest rate in New York is 3% per annum. Alternatively, the three-month euro...

The three-month dollar interest rate in New York is 3% per annum. Alternatively, the three-month euro interest rate in Frankfort is 5% p.a. The current $/€ spot exchange rate is $1.1340/€. The euro three-month forward rate is quoted at $1.1326/€. Show how a U.S. arbitrageur would exploit a possible covered interest arbitrage opportunity with a nominal $80,000,000. Don’t start with the formula. Explain in your own words the transactions the arbitrageur would execute and calculate the profit/loss the arbitrager would...

Michelle has maintained an average balance of $300 per month for the first three months of...

Michelle has maintained an average balance of $300 per month for the first three months of the year, $800 per month for the next three months, and $1,000 per month for the final six months of the year in a NOW account. It requires a minimum balance of $500 to be maintained if annual interest of 5 percent is to be earned. She writes an average of 25 checks per month but the account does not have a service charge...

(§3.4 # 3) Use the previous problem to show that the average number of binary comparisons...

(§3.4 # 3) Use the previous problem to show that the average number of binary comparisons required to sort n items is at least O(n log2 n).

Question