UNITY UNIVERSITY Department of Management and Marketing

TBH
Managerial Statistics (MGMT 222)

Chapter 2: Probability Distribution Examples

Example 1:
A. Develop probability distribution for the following random variable: The number of Heads (H) in
tossing 3 fair coins.
B. Find the expected mean, variance and standard deviation for the above random variable.
Example 2: Binomial Probability Distribution
A university has found that 20% of its students withdraw without completing the first semester
course. Assume that 6 students have registered for the course this semester.
a) What is the probability that at least one will withdraw?
b) What is the probability that exactly four will withdraw?
c) What is the expected number of withdrawals?
d) What is the variance for the number of withdrawals?
e) What is the standard deviation for the number of withdrawals?
f) Develop the Binomial probability distribution for the number of withdrawals
Example 3: Hypergeometric Probability Distribution
A shipment of pins contains 25 good (non-defective) ones and 2 defective ones. At the receiving
department, an inspector picks three pins at random and tests them. If one defective pin is
found among the three that are tested, the shipment would be rejected.
a) What is the probability that the shipment would be rejected?
b) What is the probability that the shipment would be rejected?
Example 4: If 180 out of 200 shipping orders that the inspector will examine have authorized
credit approval. What are the mean and variance of the number in a sample of 40 randomly
chosen orders that will have credit approvals? Module p. 49
Example 5: Poisson Probability distribution
A. Customers arrive at a photocopying machine at an average rate of 2 every minute. The
number of arrivals is distributed according to a Poisson distribution. Find the following
probabilities:
a) One arrival in any minute
b) There will be three arrivals during any five minutes period
c) Suppose the mean is 6 arrivals per minute find the probability of more than 2 arrivals in
any minute (Use table)
d) Develop Poisson probability distribution for 0-10 arrivals in any minute.
B. A telephone company’s goal is not have more than there line failures in a particular 1km line.
Currently the company is experiencing four line failures in 1km line.
a) What is the prob. that the company will meet its goal?
b) What’s the prob. that the company will not meet its goal?

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UNITY UNIVERSITY Department of Management and Marketing
TBH
Managerial Statistics (MGMT 222)
Example 6: A hotel has 50 rooms if 2 % of the hotel rooms are not occupied on a given day
what is the probability that less than 2 rooms will not be occupied?: (Apply Poisson
approximation of the Binomial distribution and use table)
Example 7: Normal Probability Distribution
Find the area under the standard normal curve by using the standard normal table
A. Area b/n 0 & +/- Z: 0<Z<1.95; -1.95<Z<0
B. Area to right and left of +/- Z respectively: Z<-1.95; Z>1.95; Z<-2.12; Z>2.12
C. Area b/n two points on different sides of the mean: -1.64<Z<1.95
D. Area below and above +/- Z respectively: Z<1.95; Z>-1.95; Z<2.58; Z>-2.58
E. Area b/n 2 points on the same side of the mean: 1.05<Z<1.64; -1.12<Z<-0.05
F. Z value outside 3.99 (the last Z value on the table): Z>3.99; Z<5: Z>-20; Z<-4; 0<Z<15
Example 8: The IQ score of students is normally distributed with mean of 120 and standard
deviation of 20. What proportions of students have: (Draw the normal curve for each
problem)
A. IQ b/n 100 & 130 B. IQ above 140 C. IQ below 150
D. IQ b/n 140 & 150 E. IQ below 100 F. IQ b/n 120 and 200,
Example 9: In the above IQ case
A. The highest IQ that 20% of students have is above which IQ?
B. Find the limits of IQ that the central/average 50% of students have.
C. 70% of the student's IQ is found below which IQ?
Example 10: The heights of soldiers are normally distributed. If 11.51% of the soldiers are
taller than 70.4 inches and 9.68% are shorter than 65.4 inches, find the mean & standard
deviation for the data of heights of soldiers.
Example 11: For an Airline 80% of the time seats in all flights are occupied. If a particular Air
plane has 100 seats:
A) What is the expected number of occupied seats?
B) What is the variance and standard deviation of the occupied seats?
C) What is the probability (applying normal approximation to the binomial) that:
i. More than 85 seats will be occupied
ii. At most 88 seats will be occupied
iii. Between 76 and 82 seats will be occupied
iv. Exactly 88 seats will be occupied
EXERCISES
1. A consumer agency surveyed 2500 families living in the small town to collect data on the
number of television sets owned by them. The following table lists the frequency
distribution of the data collected by this agency.
Number of TV owned 0 1 2 3 4
Number of families 850 1000 400 200 50
a) Construct a probability distribution table for the number of TV sets owned by these
families. Draw the graph of the probability distribution.
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UNITY UNIVERSITY Department of Management and Marketing
TBH
Managerial Statistics (MGMT 222)
b) Determine the probability of the number of TV sets owned by families are
c) Compute the mean number of TV sets owned by families and standard deviation of this
probability distribution.
2. Mr. J has established the following probability distribution for the number of cars he expects to
sell on a particular Saturday.
No. of cars sold (x) 0 1 2 3 4 Total
Probability, P(x) 0.1 0.2 0.3 0.3 0.1 1.0
a) What type of distribution is this?
b) On a typical Saturday how many cars should J expects to sell
c) What is the variance and standard deviation of the distribution

3. If 5% of new automobiles require warranty service within the first year and X sells 8
automobiles in a month
a) What is the probability that none of these automobiles requires warranty service?
b) What is the probability that at least one of these automobiles requires warranty service?
c) Find the probability that exactly two automobiles require warranty service?
d) Compute the mean and standard deviation of this probability distribution.
e) Develop the probability distribution for the problem
4. The probability that a randomly chosen sales prospect will make a purchase is 0.20. If a sales
representative calls on fifteen prospects, find the probability that:
a) Fewer than two sales are made
b) At least two sales are made
c) Find the expected number of sales (as a long-run average), the variance, and the standard
deviation associated with making calls on 15 prospects.
5. Suppose Mr. x has 20 delivery trucks. If 5 of the 20 trucks have suspension problems and 3
trucks were selected at random to be tested, what is the probability that one of those tested
have suspension problem?
6. Mr. X has received a shipment of 50 TV sets. 10 of these sets are found to be defective. The
owner decided to test a sample of 5 TV sets randomly. (a) What is the probability that none
of the 5 TV sets will be defective? (b)What about 2 of them are defective?
7. If the mean number of errors per day is 0.8,
a) What is the probability that there are less than 2 errors in a particular day?
b) Construct probability distribution for the problem for number of errors ranging from
0 through 8.
8. During rush hours, accidents occur at the rate of 2 per hour. The morning rush hour lasts for
1:30 minutes and the afternoon rush period lasts for 2:00 hours. On a particular day, what is
the probability that
a) There will be no accident during the morning rush hour?
b) Two accidents will occur during the afternoon rush hour?
c) Four or more accidents will occur during the morning rush hour?
d) No accident will occur during both morning and afternoon rush hour?
9. For a large shipment of transistors from a supplier, 1 percent of the items is known to be
defective. If a sample of 30 transistors is randomly selected, what is the probability that two or
more transistors will be defective?

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UNITY UNIVERSITY Department of Management and Marketing
TBH
Managerial Statistics (MGMT 222)
10. The time needed to complete a final examination in a particular college course is normally
distributed with a mean of 80 minutes and a standard deviation of 10 minutes. Answer the
following questions.
a) What is the probability of completing the exam in one hour or less?
b) What is the probability that a student will complete the exam between 60 minutes and 75
minutes?
c) Assume that the class has 60 students and the examination period is 90 minutes in
length. How many students do you expect will be unable to complete the exam in the
allotted time?
11. Service life of truck tires for heavy-duty trucks follows the normal distribution with mean
50000 km and standard deviation 5000 km.
a) What is the probability that a tyre will last between 47,000 km and 60000 km?
b) What percentage of the tyres will last below 48500 km?
c) If the supplier of the tyres is planning to replace only 1% of those tyres with the minimum
performance what should be the service life for warranty?
d) About 68% of the viewers are between which numbers?
e) About 95% of the viewers are between which numbers?
f) Practically almost all viewers are between which numbers?
g) What are the median and modal numbers of viewers?
h) Is the distribution of viewers symmetrical?
12. In Wollega University, an analysis of the final test scores for Managerial Statistics reveals the
scores follow the normal probability distribution. The mean of the distribution is 75 and the
standard deviation is 8. Required:
a) If the Instructor wants to award an A to students whose score is in the highest 10%.
Students will get A above which score?
b) Find the limits of the central/average 50% of scores obtained by the students.
c) If students with the least 2% of the score will be given F, below which score is F assigned?
d) 75% of the score is below which point?
13. The engineer has estimated that the two construction workers require a mean of 30 hrs and
a standard deviation of 2 hrs to erect a column.
a) At least how many hours are required to erect 5% of the column?
b) What percent of the column takes 28 hrs or less to erect?
14. The annual sales are normally distributed with unknown mean and unknown standard
deviation. 40% of the time sales are more than 480,000 and 10% of the time sales are more
than 500,000. What are the mean and the standard deviation?
15. It is believed that 30% of all stolen cars are recovered and returned to the owners. In a
month when 200 cars are stolen, what is the probability (applying normal approximation
to the binomial) that:
a) Fewer than 65 cars will be recovered and returned to their owners?
b) More than 75 cars will be recovered and returned to their owners?
c) Exactly 70 cars recovered and returned to their owners?