SESSION - 1

Problem Set – 1 (Div D)

Dr. Preeti Khanna
1. An experiment has three steps with three outcomes possible for the first step, two
outcomes possible for the second step, and four outcomes possible for the third step. How
many experimental outcomes exist for the entire experiment?

2. How many ways can three items be selected from a group of six items? Use the letters A,
B, C, D, E, and F to identify the items, and list each of the different combinations of three
items.

3. How many permutations of three items can be selected from a group of six? Use the
letters A,B, C, D, E, and F to identify the items, and list each of the permutations of items B,
D, and F.

4. Consider the experiment of tossing a coin three times.

a. Develop a tree diagram for the experiment.
b. List the experimental outcomes.
c. What is the probability for each experimental outcome?

5. Suppose an experiment has five equally likely outcomes: E1, E2, E3, E4, E5. Assign
probabilities to each outcome and show that the requirements in equations (4.3) and (4.4)
are satisfied. What method did you use?

6. An experiment with three outcomes has been repeated 50 times, and it was learned that
E1 occurred 20 times, E2 occurred 13 times, and E3 occurred 17 times. Assign probabilities
to the outcomes. What method did you use?

7. A decision maker subjectively assigned the following probabilities to the four outcomes of
an experiment: P(E1) = .10, P(E2) = .15, P(E3) = .40, and P(E4) = .20. Are these probability
assignments valid? Explain

8. In the city of Milford, applications for zoning changes go through a two-step process: a
review by the planning commission and a final decision by the city council. At step 1 the
planning commission reviews the zoning change request and makes a positive or negative
recommendation concerning the change. At step 2 the city council reviews the planning
commission’s recommendation and then votes to approve or to disapprove the zoning
change. Suppose the developer of an apartment complex submits an application for a
zoning change. Consider the application process as an experiment.
i. How many sample points are there for this experiment? List the sample
points.
ii. Construct a tree diagram for the experiment.
9. Many students accumulate debt by the time they graduate from college. Shown in the
following table is the percentage of graduates with debt and the average amount of debt
for these graduates at four universities and four liberal arts colleges (U.S. News and World
Report, America’s Best Colleges, 2008).
a. If you randomly choose a graduate of Morehouse College, what is the probability
that this individual graduated with debt?
b. If you randomly choose one of these eight institutions for a follow-up study on
student loans, what is the probability that you will choose an institution with more
than 60% of its graduates having debt?
c. If you randomly choose one of these eight institutions for a follow-up study on
student loans, what is the probability that you will choose an institution whose
graduates with debts have an average debt of more than $30,000?
d. What is the probability that a graduate of Pace University does not have debt?
e. For graduates of Pace University with debt, the average amount of debt is $32,980.
Considering all graduates from Pace University, what is the average debt per
graduate?

10. An experiment has four equally likely outcomes: E1, E2, E3, and E4.
a. What is the probability that E2 occurs?
b. What is the probability that any two of the outcomes occur (e.g., E1 or E3)?
c. What is the probability that any three of the outcomes occur (e.g., E1 or E2 or E4)?

11. Consider the experiment of rolling a pair of dice. Suppose that we are interested in the
sum of the face values showing on the dice.
a. How many sample points are possible? (Hint: Use the counting rule for multiple-
step experiments.)
b. List the sample points.
c. What is the probability of obtaining a value of 7?
d. What is the probability of obtaining a value of 9 or greater?
e. Because each roll has six possible even values (2, 4, 6, 8, 10, and 12) and only five
possible odd values (3, 5, 7, 9, and 11), the dice should show even values more
often than odd values. Do you agree with this statement? Explain.
f. What method did you use to assign the probabilities requested?
12. To investigate how often families eat at home, Harris Interactive surveyed 496
adults living with children under the age of 18 (USA Today, January 3, 2007). The
survey results are shown in the following table.

For a randomly selected family with children under the age of 18, compute the following.
a. The probability the family eats no meals at home during the week.
b. The probability the family eats at least four meals at home during the week.
c. The probability the family eats two or fewer meals at home during the week.

13. Do you think the government protects investors adequately? This question was
part of an online survey of investors under age 65 living in the United States and
Great Britain (Financial Times/Harris Poll, October 1, 2009). The numbers of
investors from the United States and Great Britain who answered Yes, No, or
Unsure to this question are provided below.

a) Estimate the probability that an investor in the United States thinks the
government is not protecting investors adequately.
b) Estimate the probability that an investor in Great Britain thinks the government is
not protecting investors adequately or is unsure the government is protecting
investors adequately.
c) For a randomly selected investor from these two countries, estimate the probability
that the investor thinks the government is not protecting investors adequately.
 d) Based on the survey results, does there appear to be much difference between the
perceptions of investors in the United States and investors in Great Britain
regarding the issue of the government protecting investors adequately

14.

15.