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) A bus starts at John M. Greene with 6 people, not including the bus driver. It

ID: 3326798 • Letter: #

Question

) A bus starts at John M. Greene with 6 people, not including the bus driver. It lets all those peope off (and no others on-it's very early in the morning) by the time it reaches Amherst College. There are 8 stops at which passengers might get off. Suppose the driver cares about the individual people leaving at each bus stop. How many ways are there for the driver to record the names of people leaving at each stop? (c) 8.7.6.5.4.3 (d) 86 (e) 6 (6) A company's annual profit is normally distributed with mean 100 and variance 400. Let Z be normally distributed with mean 0 and variance 1 and let F be the cumulative distribution function of Z. Which of the following describes the probability that the company's profit in a year is at most 60, given that the profit in the year is positive? (a) 1 - F(2) (b) F(2)/F(5) (c) [1 - F(2)/F(5) (d) [F(0.25)- F(1))/F(0.25) (T) An insurance policy reimburses a loss up to a benefit limit of 10. The policyholder's loss Y follows a distribution with density function: f(x)=18 for y >1 otherwise. What is the expected value of the benefit paid under the insurance policy? (e) 2.0

Explanation / Answer

5) For each of the 6 passengers, there are 8 ways in which the passenger could get down. Therefore the total number of ways that 6 passengers could get down would be computed here as:

= 8*8*...... 6 times

= 86

Therefore d) is the required answer here.