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Set+2 Normal+Distribution+Functions+of+random+variables+

The document contains examples and problems related to the normal distribution and functions of random variables. It includes questions about: - The probability a car service will be completed within an hour given service time is normally distributed - Whether more employees are over or between certain ages given employee ages are normally distributed - Differences between distributions of sums and differences of independent normal random variables - Finding values that define a probability interval around the mean of a normal random variable - Converting profits from two divisions to rupees where profits are independent normal random variables

Uploaded by

Arjun Dinakar
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© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
3K views

Set+2 Normal+Distribution+Functions+of+random+variables+

The document contains examples and problems related to the normal distribution and functions of random variables. It includes questions about: - The probability a car service will be completed within an hour given service time is normally distributed - Whether more employees are over or between certain ages given employee ages are normally distributed - Differences between distributions of sums and differences of independent normal random variables - Finding values that define a probability interval around the mean of a normal random variable - Converting profits from two divisions to rupees where profits are independent normal random variables

Uploaded by

Arjun Dinakar
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Topics: Normal distribution, Functions of Random Variables

1. The time required for servicing transmissions is normally distributed with  = 45 minutes
and  = 8 minutes. The service manager plans to have work begin on the transmission of a
customer’s car 10 minutes after the car is dropped off and the customer is told that the car
will be ready within 1 hour from drop-off. What is the probability that the service manager
cannot meet his commitment?

A. 0.3875
B. 0.2676
C. 0.5
D. 0.6987
Ans:
Since work beings 10 mins after the car is dropped, the time left to complete work is 50 mins.
Probability that Service Manager cannot meet his commitment = P(X>50) = 1- Pr(x<=50) (X is the
time taken to complete work). Convert 50 to z-score
Standard normal variable Z=(X-)/ = (x-45)/8
P(X<=50)=P(Z<=(50-45)/8)=PR(Z<=0.625)= 0.73237= 73.237% (the number in z-table)
Probability that service manager will not meet his commitment is : 100-73.237=26.763%=0.2676
So, the answer is B

2. The current age (in years) of 400 clerical employees at an insurance claims processing center
is normally distributed with mean  = 38 and Standard deviation  =6. For each statement
below, please specify True/False. If false, briefly explain why.
A. More employees at the processing center are older than 44 than between 38 and
44.
B. A training program for employees under the age of 30 at the center would be
expected to attract about 36 employees.
Ans:
 = 38 &  =6.
a) Probability of employees >44= Pr(x>44)=1-Pr(x<=44)
Z=(X-)/ = (x-38)/6
Pr(x<=44)=Pr(z<=(44-38)/6)=Pr(Z<=1)= 0.84134=84.134%

Probability that employees will be greater than 44 = 100-84.134 = 15.866


Probability of employess between 38 & 44 = Pr(x<=44) – Pr(x>=38)
Here, Pr(x<=44) = 0.84134
Pr(x>=38)=Pr(z>=(38-38)/6)=Pr(z>=0)=0.5
Therefore, Pr(x<=44) – Pr(x>=38) = 0.84134 – 0.5 = 0.34134 = 34.134%
So, the statement “More employees at the processing center are older than 44 than
between 38 and 44” is TRUE
b) Probability of employess less than 30 = Pr(X<30)
Z=(X-)/ = (30-38)/6
Pr(x<30)=Pr(z<(30-38)/6) = Pr(z<-1.3333)= .09176=9.17%

So, the number of employees with probability 0.0917 of them being under
30=400*0.0917=36.68 =36
The statement of “training program for employees under the age of 30 at the center would
be expected to attract about 36 employees” is True .

3. If X1 ~ N(μ, σ2) and X2 ~ N(μ, σ2) are iid normal random variables, then what is the difference
between 2 X1 and X1 + X2? Discuss both their distributions and parameters.

Ans: Not Sure…..

4. Let X ~ N(100, 202). Find two values, a and b, symmetric about the mean, such that the
probability of the random variable taking a value between them is 0.99. 

A. 90.5, 105.9
B. 80.2, 119.8
C. 22, 78
D. 48.5, 151.5
E. 90.1, 109.9

Ans:
The probability of getting value between a & b is 0.99
So, the probability of getting value outside a & b is 1-0.99 = 0.01
The probability towards left of a = -0.01/2=-0.05
The probability towards right of b = 0.01/2=0.05
Since we have probabilities of a & b, we need calulcate the probability of X - the random
variable at a & b which has these probabilities
By finding Standard Normal Variable (z),need to calculate X:
Z=(X-Mue)/Sigma
For a probability of 0.005, z values is -2.57
Z* σ+ μ=x
-(-2.57)*20+100=151.4
(-2.57)*20+100=48.6
Option D is the correct answer
5. Consider a company that has two different divisions. The annual profits from the two
divisions are independent and have distributions Profit 1 ~ N(5, 32) and Profit2 ~ N(7, 42)
respectively. Both the profits are in $ Million. Answer the following questions about the
total profit of the company in Rupees. Assume that $1 = Rs. 45
A. Specify a Rupee range (centered on the mean) such that it contains 95% probability
for the annual profit of the company.
B. Specify the 5th percentile of profit (in Rupees) for the company
C. Which of the two divisions has a larger probability of making a loss in a given year?

Ans: NOT SURE…..

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