Microeconomics

QUESTION #1

a) The variable of interest is the number of pay-checks that were deliberate wrongly.

b) Given the following data; the number of trials (350) and the probability of achievement (0.005), we can calculate the probability of failure (0.995). Hence the permit distribution bequeath be the Binomial luck Distribution.

The parameters argon:-

? n = 350

? P = 0.005

? Q = 0.995

c) allow the r.v. be the number of pay-checks that were work out incorrectly

X ( BIN (n, p)

X ( BIN (350, 0.005)

conventionalismP ( X = x ) = nCX px qn x

P ( X = 1 ) = 350C1 (0.005)1 (0.995)349

= (350) (0.005) (0.174)

= 0.3045

The probability of finding one paycheck that was calculated incorrectly is 0.3045.

d) Expectation of X is E(X) = np

E(X) = (350) (0.005)

E(X) = 1.75

In a inclined month, 1.75 employees payroll would be calculated incorrectly.

QUESTION #2

Using the Poisson Probability distribution:

Let X be the r.v. No. of major hurricanes to hit the U.S.A.

? = 0.6

X ( Po (?)

X ( Po (0.6)

decreeP(X = x) = e ? ?x

X !





P ( X > 1 ) = 1 P(X ? 1 )

= 1 P(X = 0) + P(X = 1)

P(X = 0) = e 0.6 (0.6)0 = e 0.6

0 !

P(X = 1) = e 0.6 (0.6)1 = 0.6 e 0.6

1 !

P(X > 1) = 1 e 0.6 + 0.6 e 0.6

= 1 0.549 + 0.329

= 1 0.878

= 0.122

The probability that more than one major hurricane will strike the USA is 0.122 in that given year.

QUESTION #3

Let the r.v. be the number of hours per week adults spend on household computers:

X ( N ((,(2)

X ( N (8, 12)

FormulaP = X - (

(

P ( 5.5 < X < 9.5 )...If you want to get a full essay, order it on our website: Ordercustompaper.com



If you want to get a full essay, wisit our page: write my paper