Questions: Probability and Statistics
Questions: Probability and Statistics
QUESTIONS
Question 2 Jack plays a game, which assigns a number that is uniformly distributed
between 0 and 5. If the game assigns a number less than or equal to k, then he loses 1 dollar,
on the other hand, if the game assigns a number larger than k, then he will gain 1 dollar.
(a) Find the expected profit of the game.
(b) What is the k value, which minimizes the variance of the profit obtained in this game?
(c) If you were to play this game 10 times, what is the probability that you gain 2 dollars.
(b) P (X > Y );
(b) How large a sample is needed in Question 4(a) if we wish to be 98% confident that
our sample mean will be within 1.2 of the true mean?
(c) Suppose you wish to detect a difference between the population means. Conduct the
test and state your conclusions. Use a 0.01 level of significance.