Statistics for Decision- Making in Business - Maricopa Community ...
Statistics for Decision- Making in Business - Maricopa Community ...
Statistics for Decision- Making in Business - Maricopa Community ...
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sequence, one ball is chose at random from each b<strong>in</strong>. What is the probability that the<br />
sequence 9-1-1 would be the one selected on any particular day<br />
4. On August 8, 2011, the Dow Jones Industrial fell 635 po<strong>in</strong>ts (5.5%) to 10,810 po<strong>in</strong>ts,<br />
represent<strong>in</strong>g the 6 th worst po<strong>in</strong>t loss ever experienced. On that day, President Obama‟s<br />
approval rat<strong>in</strong>gs also suffered tremendously; only 22% of the nation‟s voters “Strongly<br />
Approve” of how he is per<strong>for</strong>m<strong>in</strong>g <strong>in</strong> the presidential role (SOURCE:<br />
http://www.rasmussenreports.com/public_content/politics/obama_adm<strong>in</strong>istration/daily_pr<br />
esidential_track<strong>in</strong>g_poll).<br />
Suppose presidential hopeful Randall Terry (Democrat) speaks at a rally shortly<br />
thereafter and assumes that his approval rat<strong>in</strong>g as a candidate will likely closely mirror<br />
President Obama‟s. Suppose there are 40 sw<strong>in</strong>g voters (voters that are “on the fence”<br />
about who to vote <strong>for</strong>). (Video Solution)<br />
a. What is the probability that all 40 voters will strongly approve of Terry‟s plan<br />
b. What is the probability that none of the 40 voters will strongly approve of Terry‟s<br />
plan<br />
c. What is the probability that at least one voter will approve of Terry‟s plan<br />
5. The follow<strong>in</strong>g case study is reported <strong>in</strong> the article "Park<strong>in</strong>g Tickets and Miss<strong>in</strong>g<br />
Women," which appears <strong>in</strong> an early edition of the book <strong>Statistics</strong>: A Guide to the<br />
Unknown. In a Swedish trial on a charge of overtime park<strong>in</strong>g, a police officer testified<br />
that he had noted the position of the two air valves on the tires of a parked car: To the<br />
closest hour, one valve was at the 1 o' clock position and the other was at the 6 o' clock<br />
position. After the allowable time <strong>for</strong> park<strong>in</strong>g <strong>in</strong> that zone had passed, the policeman<br />
returned, noted the valves were <strong>in</strong> the same position, and ticketed the car. The owner of<br />
the car claimed that he had left the park<strong>in</strong>g place <strong>in</strong> time and had returned later. The<br />
values just happened by chance to be <strong>in</strong> the same positions. An "expert" witness<br />
computed the probability of this occurr<strong>in</strong>g as (1/12)(1/12) = 1/144.<br />
a. What reason<strong>in</strong>g did the expert use to arrive at the probability of 1/144<br />
b. Can you spot the error(s) <strong>in</strong> the reason<strong>in</strong>g that leads to the stated probability of<br />
1/144 What effect does this error(s) have on the probability of occurrence Do<br />
you th<strong>in</strong>k that 1/144 is larger or smaller that the correct probability of occurrence<br />
6. Jeanie is a bit <strong>for</strong>getful, and if she doesn't make a "to do" list, the probability that she<br />
<strong>for</strong>gets someth<strong>in</strong>g she is supposed to do is .1. Tomorrow she <strong>in</strong>tends to run three errands,<br />
and she fails to write them on her list.<br />
a. What is the probability that Jeanie <strong>for</strong>gets all three errands What assumptions did<br />
you make to calculate this probability<br />
b. What is the probability that Jeanie remembers at least one of the three errands<br />
c. What is the probability that Jeanie remembers the first errand but not the second<br />
or third<br />
7. One of the myths most commonly believed by students on multiple choice exams is that,<br />
as long as they always use letter „C‟ as their guess, they <strong>in</strong>crease their chances of<br />
<strong>Statistics</strong> <strong>for</strong> <strong>Decision</strong>-<strong>Mak<strong>in</strong>g</strong> <strong>in</strong> Bus<strong>in</strong>ess © Milos Podmanik Page 97