STATS 2D03 ASSIGNMENT 3

Due: FRIDAY Nov. 3rd, by 1 pm in the lockers on the first floor of Hamilton Hall
Note: Please put the assignment in the appropriate locker for your family name.
LATE ASSIGNMENTS WILL NOT BE GRADED

1.- Let X to be a discrete random variable with integer values and cumulative
distribution function:

0 𝑥 < −3
5/24 −3 ≤ 𝑥 < −2
1/2 −2 ≤ 𝑥 < −1
𝐹(𝑋) = 2/3 −1 ≤ 𝑥 < 0
5/6 0≤𝑥<1
11/12 1≤𝑥<2
{ 1 𝑥≥2

Compute the probability mass function for X and the expected value of X.

2.- A house insurance policy pays an amount of A dollars in the event that the insured
house is lost due to a hurricane. This event has a probability of p of occurring. If the
insurance company is to charge an amount for the protection that includes an
expected profit of 5% of A, what should they charge? Your answer will be an
expression with p.

3.- There are 20 black chocolates on a box. Although all look the same, 6 of them have
an espresso flavor, the others do not. Let X be the number of chocolates that you
test until you have got your first espresso flavored chocolate. What is the
probability mass function of X? That is, 𝑃(𝑋 = 𝑘) for integer values of k from 1 to
20?

4.- Two fair dice are rolled independently and the two numbers appearing on them are
added together. If they total 2, 9 or 12, you win $10; otherwise, you lose $2. In the
long run, how much do you expect to win or lose per roll?

5.- Suppose that the number of people admitted to a hospital each day for an urgent
treatment is a Poisson random variable with parameter λ=5. Find the probability
that at least 3 people were admitted today to the hospital for an urgent treatment.

Continued…

McMaster University, Fall 2017

6.- Let X be a discrete random variable with expected value 3 and variance 12.
Compute: 𝐸[(𝑥 + 5)2 ] + 𝑉𝑎𝑟[3𝑥 + 2]

7.- On average, 3.8 tornados hit the Midwest region in the Unites States in a year.
Calculate the probability that there will be 3 or more tornados hitting the region
next year.

8.- Consider a roulette wheel consisting of 38 numbers 1 through 36, 0 and a double 0.
If you always bet that the outcome will be one of the numbers 1 through 10, find
the probability that:
a) You will lose your first 6 bets
b) Your first win will occur on your 10th bet
c) How many bets do you expect to take to win 3 times?

McMaster University, Fall 2017