E2 - King Fahd University of Petroleum and Minerals
E2 - King Fahd University of Petroleum and Minerals
E2 - King Fahd University of Petroleum and Minerals
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STAT 211 Business Statistics I – Term 093<br />
2<br />
Question One (2+2+3+3 =10 points)<br />
The following table is a partial probability distribution for AlBilad’s total projected returns on its old<br />
investment ventures (X = pr<strong>of</strong>it in SR 1000s) for the year 2005 where the negative value denotes<br />
a projected loss.<br />
X −100 0 50 100 150 250<br />
P(x) 0.1 0.2 0.25 0.30 0.1<br />
a. What is the correct value for P(X = 250)<br />
b. What is the probability that AlBilad’s 2005 investments will be pr<strong>of</strong>itable<br />
c. What is the expected amount <strong>of</strong> returns for AlBilad’s investments<br />
d. Let Y = 0.8 X – 30. Find the expected value for Y
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