Explore BrainMass


Binomial Model: Calculate put price

Please help with the following problem. Include calculations. Suppose that the stock now sells at $80, and the price will go up by 5% or down by 5% at the end of first six month (t = ½). Then, the price will either go up by 10% or down by 10% at the end of year (t = 1). A call option on the stock has an exercise price of

Probability: Expected Profit and Poisson Distribution

1) A contractor is considering a project which he estimates will yield a $160,000 profit with a probability of 65% and a loss of $50,000 with a 35% probability due to poor weather and material issues. What is his expected (value) profit? 2) CSI has a 20 share meaning that while it is being broadcast, 20% of the TV sets are tu

Probability - research problem

What is an example of a research problem at your organization that would benefit from the use of either descriptive statistics or probability distribution statistics? Explain.

Decision Making and State of Nature

Allen Abbott has a wide-curving, uphill driveway leading to his garage. When ther is a heavy snow, Allen hires a local carpenter, who shovels snow on the side in teh winter, to shovel his driveway. The snow shoveler charges charges $30 to shovel the driveway. Following is a probability distribution of the number of heavy snows e

Binomial Probability: Side Effects of a Drug

If 30% of the people who are given a certain drug experience side effects, find these probabilities for a sample of 15 who take the drug. a. At least 2 people will have a side effect: b. Exactly 7 people will have a side effect: c. At most 5 people will have a side effect:

Binomial Probability: Commuters on a Train

If 50% of all commuters ride the train to work, find the probability that if 10 workers are selected, a. 3 will ride the train. b. 1 will ride the train c. 0 will ride the train d. 5 will ride the train


A lottery involves drawing five white balls out of a drum with 55 balls and then drawing one red ball out of a drum with 42 red balls. You can buy a $1 ticket and select five white numbers from (1-55 inclusive and one red number (from 1 - 42 inclusive). you win the lottery if you pick all five of the correct white balls and th

Probability: Purchasing Different Coloured Swimsuits

At a swimwear store, the managers found that 16 women bought white bathing suits, 4 bought red suits, 3 bought blue suits, and 7 bought yellow suits. If a customer is selected at random, find the probability that she bought: a. A blue suit b. A yellow or a red suit c. A white or a yellow or a blue suit d. A suit tha

Probability of customer support calls amount

2. The following data are the number of calls 20 customer support reps took in 1 hour; 10, 10, 15, 18, 20, 21, 22, 24, 24, 25, 26, 26, 26, 28, 30, 31, 33, 38, 40, 42 Find the: a. Mid-range Minimum =10 Maximum =42 Mid range= (10+42)/2=26 b. Standard Variance c. Standard Devi

Probability of Card Selection

3. When a card is selected from a deck, find the probability of getting: a. A club b. A face card or a heart c. A six and a spade d. A king e. A red card

Probability of Getting a Job

The table below represents the results of a survey of 500 Households in Q1 2005: Current Economic conditions: GOOD FAIR BAD Jobs Are HARD To Get 25 145 70 Jobs Are EASY To Get 100 145 15 a. If a Household is chosen at random, what is the probability that it feels economic conditions are GOOD? b. If a Ho

EOQ Model for the Bridgeport City

The Bridgeport city manager and the chief of police agreed on the size of the police force necessary for normal daily operations. However, they need assistance in determining the number of additional police officers needed to cover daily absences due to injuries, sickness, vacations, and personal leave. Records over the past thr

Probability calculation using frequency approach .

2. Suppose 90% of kids who visit a doctor have a fever, and 20% of kids with a fever have sore throats. What's the probability that a kid who goes to the doctor has a fever and a sore throat? The probability is ______. 3. The percent distribution of live multiple-delivery births (three or more babies) in a particular year fo

Probability and simulating files for promotion

Individually remove all four aces from a deck of playing cards. There will now be 24 red cards in the deck, that will represent "male" files, and 24 black cards that will represent "female" files. Alternatively, you may use 48 index cards, marking half with "M" and half with "F". Shuffle the cards at least seven times and then

Poisson Distribution for Major Earthquakes

For a recent period of 100 years, there were 93 major earthquakes (at leat 6.0 on the Richter scale) in the world (based on data from the World Almanac and Book of facts). Assuming that the Poisson distribution is a suitable model, find the mean number of major earthquakes per year, then find the probability that the number of e

Probability: A Study of College Football Games

A study of college football games shows that the number of holding penalties assessed has a mean of 2.3 penalties per game and a standard deviation of 1.1 penalties per game. What is the probability that, for a sample of 40 college games to be played next week, the mean number of holding penalties will be 2.4 penalties per game


An oil explorer orders seismic tests to determine whether oil is likely to be found in a certain drilling area. The seismic tests have a known reliability: when oil does exist in the testing area, the test will indicate so 90% of the time; when oil does not exist in the test area, 5% of the time the test will erroneously indica

Finance questions

1) You are interested in investing, and are considering a portfolio comprised of the following two stocks. Their estimated returns under varying market conditions are provided: Condition Probability of condition Return on security A Return on security B Economy Sluggish 0.3 0.16 -0.05 Economy Normal 0.

The Probability of Defective Rackets

A sample of 100 wood and 100 graphite tennis rackets are taken from a warehouse. If 17 wood and 12 graphite rackets are defective and one racket is selected at random, find the probability that the racket is wood or defective.

Probability of Different Scenarios

1. A study of 200 advertising firms revealed their income after taxes: Income after Taxes Number of Firms Under $1 million 102 $1 million to $20 million 61 $20 million or mor

Determining range, mean absolute deviation, standard deviation and variance

1. A social scientist for a children's advocacy organization has randomly selected 10 Saturday-mornings television cartoon shows and carried out a content analysis in which he counts the number of incidents of verbal or physical violence in each. For 10 cartoons examined the counts were as follows: 27, 12, 16, 22, 15, 30, 14, 30

Calculate: The Probability of Completing an Assignment

Dr. Stallter has been teaching basic statistics for many years. She knows that 80 percent of the students will complete the assigned problems. She has also determined that among those who do their assignments, 90 percent will pass the course. Among those students who do not do their homework, 60 percent will pass. Mike Fishbaugh

Probability of Cards in a Deck

Please help with the following probability questions. The condition for the question is that the deck of cards has 52 cards and among them are 12 face cards. 1. a) What is the probability of choosing 6 face cards out of 8 chosen (through binomial distribution holds, meaning with replacement)? b) What is the probability of

Solving Probabilty, Normal Distributions and Using Excel

SOB's systolic blood pressure is a random variable with a mean of 145 mmHG and a standard deviation of 20mmHG. If the SOB's blood pressure is taken at a randomly chosen moment what is the probability it will be below 135? What is the probability it will be over 175?


See attached A final exam in sociology has a mean of 72 and a standard deviation of 9.2....

Centric Circles (Please see the attached file)

Concentric circles of radius 1inch and 3 inches are drawn on a circular target of radius 5 inches as shown below. A person fires at the target and receives 10 points, 5 points, or 3 points according to whether the target is hit inside the smaller circle, inside the middle annular region, or inside the outer annular region, respe

Probability Distributions

Refer to the Baseball 2005 data, which reports information on the 30 major league teams for the 2005 baseball season. a. Select the variable team salary and find the mean, median, and the standard deviation. = Mean = X Median = s = Standard Devia

General Statistics questions from probability and descriptive statistics.

1. A search engine site claims that, on average, one out of five visitors clicks on an ad. a. If 7 users visit the site, what is the probability that at least one clicks on an ad? b. If 7 users visit the site, what is the probability that less than three of them click on an ad? c. If 700 users visit the site, would the pr

The probability of rain in Boston

When writing about the probability that it will rain in Boston on July 4 of next year, a newspaper reporter states that the probability is ½, because either it will rain or it will not. Is this reasoning correct? Why or why not? An insurance company states that the probability that a particular car will be involved in a car

Finance : Expected Return and Risk

Emery, Finnerty & Stowe - Ch. 6, problems A6, B6, & B10 (a only)- A6. (Expected portfolio return) Musumeci Capital Management has invested its portfolio as shown here. What is Musumeci's expected portfolio return? B6. (Expected return and risk) Procter & Gamble is considering three possible capital investment