2.3 A certain federal agency employs three consulting firms (A, B, and C) with probabilities
0.40, 0.35, and 0.25, respectively. From past experience it is known that the probability of
cost overruns for the firms are 0.05, 0.03, and 0.15, respectively. Suppose a cost overrun is
experienced by the agency.
(i) What is the probability that the consulting firm involved is company C?
[6]
(ii) What is the probability that the consulting firms involved is company A and B? [4]
Question 3 [30 marks]
3.1 The natural remedy echinacea is reputed to boost the immune system, which will reduce
the number of flu and colds. A six-month study was undertaken to determine whether the
remedy works. From the study, the following probability distribution of the number of res-
piratory infections per year (X) for echinacea users was produced.
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p(x) 0.45 0.31 0.17 0.06 0.01
(i) Find is the expected number of respiratory infections among echinacea users?
[3]
(ii) Find the standard deviation of the expected number of respiratory infections among
echinacea users.
[5]
(iii) Find the cumulative distribution of X.
[5]
(iv) What is the median value of X?
[1]
3.2 A chemist measures the temperature of a solution in °C. The measurement is denoted by T,
and is normally distributed with mean 30°C and a standard deviation 2°C. The measurement
is converted to °F by the equation F = l.8T + 32. Then what is
(i) the mean value of F?
[2]
(ii) the median value of F?
[2]
(iii) the variance of F?
[2]
3.3 A cereal manufacturer is aware that the weight of the product in the box varies slightly
from box to box. In fact, considerable historical data have allowed the determination of the
density function that describes the probability structure for the weight (in ounces). Letting
X be the random variable weight, in ounces, the density function can be described as
82 if 23.75 < y < 26.25
f (y) = {
otherwise
Find:
(i)E(Y)
[3]
(ii) E(Y 2)
[3]
(iii) V ar(Y)
[2]
(iv) median of y (hint: First, find F(Y)).
[4]
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