©Zarestky
Math 141 Quiz 9 Version A
11/19/2009
NAME:_________KEY_______________________________
1.
(4 pts) An art collector pays $40 for a $600, 1-year insurance policy on a painting. Assuming that the
chance the painting will need to be replaced is 3%, what is the insurance company’s expected
profit? For full credit, make a probability distribution table.
Let X represent the company’s profit
x
P(x)
Painting is OK.
40
0.97
Painting is replaced.
40-600 = –560
0.03
( )
E X = 0.97 ! 40 + 0.03! "560 = $22
The company’s expected profit is $22.
2.
(2 pts each) Determine whether each of the following experiments is binomial. Circle your answer. If it
is not binomial, state the reason.
A. A marble is drawn and not replaced from a bag containing 6 red and 4 blue marbles until there are no
marbles left.
Binomial
Not Binomial
Not independent. Probabilities differ on each draw.
B. A student guesses on every question of a 5-item true-false test.
Binomial
Not Binomial
C. A die is rolled 4 times and the uppermost number is observed each time.
Binomial
Not Binomial
More than 2 outcomes.
D. A coin is tossed repeatedly and the experiment ends after two heads have been observed.
Binomial
Not Binomial
Not a fixed number of trials.