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Probability

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Use the following to answer questions 20-22:

A $152,400 loan is taken out at 11.5% for 25 years, for the purchase of a house. The loan requires monthly payments.

20. Find the amount of each payment.

21. Determine the total amount repaid over the life of the loan.

22. Find the total interest paid over the life of the loan.

23. In the game Over-and-Under, a pair of dice is rolled and one bets $1 whether the sum of dots showing on the two dice is over 7, under 7, or exactly 7 with payoffs of $2, $2, and $5, respectively. Determine a person's expected net winnings if the bet is as indicated.

a. Over 7

b. Under 7

c. Exactly 7

d. Is the game fair?

24. A box contains 4 defective and 8 good light bulbs. If 3 bulbs are selected at random. What is the probability that exactly one is good?

25. Four percent of the items coming off an assembly line are defective. If the defective items occur randomly and ten items are chosen for inspection, what is the probability that exactly two items are defective?

26. The following data represent the number of car accidents per month in a small town over a two-year period.
Number of Accidents
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -1
Yr 1 169 163 170 165 165 169 168 172 170 172 171 165 -1
Yr 2 170 168 177 164 173 166 173 176 177 172 170 172 -1

Construct a frequency distribution based on the intervals 163 - 165, 166 - 168, 169 - 171, 172 - 174, 175 - 177.

Use the following to answer questions 27-31:

Use the following sample: 28, 30, 24, 30, 32, 40, 22, 25, 26, 34

27. Find the mean.

28. Find the median.

29. Find the mode.

30. Find the standard deviation for a sample.

31. Find the z-score for 30. (Assume a normal distribution.)

32. A probability distribution has an expected value of 28 and a standard deviation of 4. Find the area under the standard normal curve between 20 and 36

Use the following to answer questions 33-34:

Using z-scores, what is the area under the standard normal curve?

33. To the left of 1.8?

34. Between 2.20 and 1.36

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Solution Summary

This provides examples of working with data and probability, as well as working with loan payments.

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