city, the probability that a person will pass his le are selected at random from
ID: 2906734 • Letter: C
Question
city, the probability that a person will pass his le are selected at random from among those or her driving test on the first attempt is 0.62. 3 taking their driving test for the first time. What 11 peop is the probability that a inclusive? mong these 11 the number passing the test is between 2 and 4 A) 0.0848 B) 0.0764 0.0593 D) 00729 Solve the problem. 39) A contractor is considering a sale that promises a profit of $23,000 with a probability of.7 or a loss 39 (due to bad weather, strikes, and such) of $15,000 with a probability of 3. What is the expected profit? A) $11,600 B) $26,600 $8000 D) $16,100 40) An insurance company will insure a $220,000 home for its total value for an annual premium of $520. If the company spends $30 per year to service such a policy, the probability of total loss for n a given year is 0.001 and you assume either total loss or no loss will occur, what is company's expected annual gain (or profit) on each such policy? A) $220 the B) -$220 C $270 D) $300 41) A commercial building contractor is trying to decide which of two projects to commit her company to. Project A will yield a profit of $50,000 with a probability of 0.6, a profit of $82,000 with a probability of 0.3, and a profit of $10,000 with a probability of 0.1. Project B will yield a profit of $100,000 with a probability of 0.1, a profit of $67,000 with a probability of 0.7, and a loss of $20,000 with a probability of 0.2. Find the expected profit for each project. Based on expected values, which project should the contractor choose? B) Project A: $5,600 A) Project A:$55,600 Project B: $52,900 Contractor should choose project A Project B: $60,900 Contractor should choose project B Project B: $49,000 Contractor should choose project A C) Project A: $46,600 D) Project A: $47,333 Project B: $52,900 Contractor should choose project B 42) Suppose a charitable organization decides to raise money by raffling a trip worth $500. If 3,000 tickets are sold at $1.00 each, find the expected net winnings for a person who buys 1 ticket A) -$0.81 B)-$1.00 C)-$0.85 D)-$0.83 43) Suppose you buy 1 ticket for $I out of a lottery of 1,000 tickets where the prize for the one winning ticket is to be $500. What is your expected net winnings? A)$0.00 B)-$1.00 C-$0.40 D)-$0.50Explanation / Answer
38) n = 11
p = 0.62
q = 1 - p = 0.38
Binomial distribution formula, P(x) = nCx px qn-x
P(number of people passing test is between 2 and 4) = P(2) + P(3) + P(4)
= 11C2x0.622x0.389 + 11C3x0.623x0.388 + 11C4x0.624x0.387
= 0.0035 + 0.0171 + 0.0558
= 0.0764
39) Expected profit = 23000x0.7 - 15000x0.3
= $11,600
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