In general, offering to sell insurance policies is most effective in situations where there is… Group of answer choices a. a high probability of a small loss. b. a low probability of a small loss. c. a high probability of a large loss. d. a low probability of a large loss.

In an annual poll about consumption habits, telephone interviews were conducted for a random sample of 1,016 adults aged 18 and over. One of the questions was, "How many cups of coffee, if any, do you drink on an average day?" The following table shows the results obtained.

Define a random variable x = number of cups of coffee consumed on an average day. Let

x = 4

represent four or more cups.

(a)

Develop a probability distribution for x. (Round your answers to three decimal places.)

(b)

Compute the expected value of x. (Round your answer to three decimal places.)

E(x) =

(c)

Compute the variance of x. (Round your answer to three decimal places.)

Var(x) =

(d)

Suppose we are only interested in adults who drink at least one cup of coffee on an average day. For this group, let y = the number of cups of coffee consumed on an average day. Compute the expected value of y. (Round your answer to three decimal places.)

E(y) =

Compare the expected value of y to the expected value of x.

When we only take into account adults that drink at least one cup of coffee per day, the expected value is  ---Select--- equal to higher than lower than the expected value of x.

Tobacco is shipped from North Carolina to a cigarette manufacturer in Cambodia once a year. The reorder point, without safety stock, is 200 kilos. The carrying cost is $20 per kilo per year, and the cost of a stockout is $70 per kilo per year. Given the following demand probabilities during the lead time, how much safety stock should be carried?
Demand During Lead Time(Kilos) Probability

0 ................... .....................................0.1
100 ......................................................0.1
200 ..................................................... 0.2
300 ................... ..................................0.4
400 ................... ..................................0.2

The optimal quantity pf safety stock which minimizes expeted total cost is ____ kilos (enter anwser as a whole number).

4. Based on data from the Insurance Research Council, about 14% of US drivers are uninsured. Let’s assume the 14% is true and we randomly select 250 US drivers. Round all probabilities to 3 significant figures.

1. Find the mean and standard deviation for number of uninsured drivers among the 250 we select.

2. Use your results from part (a), and the range rule of thumb to identify the values that are significantly low and high.

3. Determine the probability that at most 20 drivers of the 250 selected are uninsured.

4. Given that 20 drivers out of the 250 selected were uninsured,what can we conclude?

0. Phenylthiocarbamide, or PTC, tastes very bitter to those who can taste it. However, about 30% of people cannot taste it, due to a recessive allele in their DNA. Assume that the proportion of people with this genetic trait is exactly 30%. A researcher administers PTC to 25 randomly- selected subjects. Let X be the number of these subjects who cannot taste PTC.

   1. What is the probability distribution of X?

   2. Calculate:

      (i) P(5≤X≤11)     (ii) the mean and standard deviation of X.   (iii) P( X > 9)

3. If only 2 of the subjects could not PTC, would this be an unusual sample? Justify your answer.

The results of the demand forecast of Pizza is presented to you for analysis. As a new manager of the company, you are required to provide an explanation for this forecast given your knowledge of managerial economics so that the company would know what to concentrate on.

          Y= 1.1 - 2.0P + 0.5S + 0.8X + 1.5T

                        (3.2)    (9.3)    (1.2)     (2.6)

R² is 0.78;      Probability value (F-statistic) is 0.02; t-statistics are the values in the bracket above

Whereby

Y is the Quantity demand for coffee

P is the price of Pizza (in dollar)

S is the demand for Soft drink (in number of quantity)

X is the income of people in the market surveyed (in 1,000 dollar).

T is the taste of the consumers for Pizza in that area

Consider a toy population that consists of three numbers 1,2, and 3.

A. Let X be the randomly selected number (P(X = x) = 1/3) for x = 1,2,3. Find E(X) and V(X).

B. What are the values of the population mean µ and population variance σ^2?

C. Take a random sample of size n = 2 (with replacement). Determine the sampling distribution of the sample mean x̄, i.e. find the probability for each possible value of x̄.

D. Find the standard error of x̄. An observed sample consists of 1 and 2. Based on this piece of information, what is the (estimated) standard error?

jamestown steel company manufactures and assembles desks and other office equipment. The weekly production of the model A325 desk at the Fredonia Plant follows the normal probability distribution with a mean of 200 and a standard deviation of 16. Recently, new production methods have been introduced and new employees hired. The VP of manufacturing would like to investigate whether there has been a change in the weekly production of the Model A325 desk. A sample from last year's weekly production yielded a mean number of desks produced of 203.5.For a 0.01 significance level, what is the critical value?

a. 2.576

b. 2.326

c. 1.96

d. 1.645

1. Based on U.S. Bureau of Justice data, 16% of persons arrested are women. If 400 arrest cases are randomly selected, estimate the probability that more than 60 women were arrested. Since this is discrete data, use the binomial distribution.

I got the answer 0.628 and it is not correct.

2. The lengths of human pregnancies are normally distributed with a mean of 268 days and a standard deviation of 15 days. If we stipulate that a baby is premature if the length of pregnancy is in the lowest 3%, find the number of days that separates premature babies from those who are not premature.

Here I got the answer 296 days and it is not correct.

Thank you