251y0721 3/23/07 ECO251 QBA1 SECOND HOUR EXAM March 28, 2007 Name: _____KEY______________ Student Number: _____________________ Hour of Class Registered: Circle MWF10, MWF11 There will be a penalty if you do not provide all this information! Part I: (3 points) 2 point penalty for not trying. A set of 5 speed tests were made for a new automobile model, with the following results. 115 116 114 113 114 Find the standard deviation of the speed. For your convenience the sum of the first four numbers is 4 4 x 458 and the sum of the first four numbers squared is x 2 52446 . i 1 i 1 Solution: This can be written out as the tableau below. x2 x x x x 2 13225 13456 12996 12769 12996 65442 0.6 1.6 -0.4 -1.4 -0.4 0.0 0.36 2.56 0.16 1.96 0.16 5.20 x 1 2 3 4 5 115 116 114 113 114 572 4 You were given x 458 , so i 1 x 2 n 5, x 458 114 572 . You were also given 4 x 2 52446 , so i 1 52446 114 2 65442 . If you used these numbers, the computations above were not needed. x 572 and x 2 65442 , So x x 572 114 .4 . If you have wasted your time n 5 x x 0 (a check) and x x 1 1 x n x 65442 5 572 computing the x x and x x columns, you have 2 In any case, s x x n 1 2 2 x 2 nx 2 n 1 65442 5114 .42 4 2 2 2 n 1 5.20 . 2 4 5.20 1.30 and s 1.30 1.140 . 4 1 251y0721 3/23/07 Part II: (50 points) Do most of the following: All questions are 2 points each except as marked. Exam is normed on 50 points including take-home. [Bracketed numbers are a point total.] If you answer ‘None of the above’ in most questions, you should provide an alternative answer and explain why. You may receive credit for this even if you are wrong. This section is long and few people will finish. You only need 35 points for a perfect score, so look them over! As always any extra points on this exam wrap around. 1. If events A and B are independent and their probabilities are not zero, the following cannot be true. (3) a) A and B are complements. b) A and B are mutually exclusive. c) P A B 0 d) All of the above could be true e) *None of the above can be true f) Not enough information Explanation: A and B are complements if P A B 1 and A and B are mutually exclusive. If A and B are mutually exclusive, P A B 0 . But we have seen in class that if events A and B are independent, P A B P APB . But this product can only be zero if P A or PB is zero. Exhibit 1: Consider the Following table. It refers to employees of a corporation and their absences. The events are: A1 'No Absences', A2 '1-2 Absences', A3 '3-4 Absences', A4 'Over 4 Absences', B1 'Age below Event B1 B 2 B3 .250 .125 .075 A1 A2 .080 .140 .065 21', B2 'Age 21-35', B3 'Age above 35'. .040 .060 .060 A3 .030 .025 A4 2. Fill in the missing probability inside the table. We know that the numbers in the table must total 1. If we look at the row totals, 1 - .450 - .285 - .160 = .105. To make the total of A4 equal to .105, the missing number must be .105 - .030 - .025 = .050. We can check this by finishing the column totals. Event B1 B 2 B3 Event B1 B 2 B3 .250 .125 .075 .450 .250 .125 .075 .450 A1 A1 A2 A2 .080 .140 .065 .285 .080 .140 .065 .285 .040 .060 .060 .160 .040 .060 .060 .160 A3 A3 .030 .025 A4 A4 . 030 . 025 . 050 .105 .400 .350 .250 1.000 .400 .350 3. Find the joint probability of A1 and B1 in exhibit 1. a. P A1 B1 .250 b.* PA1 B1 .250 c. PA1 B1 .625 d. PA1 B1 .250 e. P A1 B1 .625 f. PA1 B1 .600 g. None of the above – fill in correct answer. 2 251y0721 3/23/07 Exhibit 1: Consider the Following table. It refers to employees of a corporation and their absences. The events are: A1 'No Absences', A2 '1-2 Absences', A3 '3-4 Absences', A4 'Over 4 Absences', B1 'Age below 21', B2 'Age 21-35', B3 'Age above 35'. I have put in the table with missing items added. Event B1 B 2 B3 .250 .125 .075 .450 A1 A2 .080 .140 .065 .285 .040 .060 .060 .160 A3 A4 .030 .025 .050 .105 .400 .350 .250 1.000 4. Find the conditional probability of A1 given B1 in exhibit 1. a. P A1 B1 .250 b. PA1 B1 .250 c. PA1 B1 .625 d. PA1 B1 .250 e. * P A1 B1 .625 f. PA1 B1 .600 g. None of the above – fill in correct answer. Explanation: The Multiplication Rule says P A B PA1 B1 .250 so PA1 B1 P A B . Because this is a joint probability table, P B P A1 B1 .250 .625 PB1 .400 5. Find the probability of A1 or B1 in exhibit 1. a. P A1 B1 .250 b. PA1 B1 .250 c. PA1 B1 .625 d. PA1 B1 .250 e. P A1 B1 .625 f. * PA1 B1 .600 g. None of the above – fill in correct answer. Explanation: The Addition Rule says PA1 B1 P A1 PB1 P A1 B1 .450 .400 .250 . 6. What is the probability that someone above 35 has no absences in exhibit 1 – fill in a number. [12] Solution: The events are: A1 'No Absences', A2 '1-2 Absences', A3 '3-4 Absences', A4 'Over 4 Absences', P A1 B3 .075 B1 'Age below 21', B2 'Age 21-35', B3 'Age above 35'. So we want P A1 B3 .300 . PB3 .250 3 251y0721 3/23/07 Exhibit 2: 20 per cent of Airplane crashes involve bad weather and 45 per cent of crashes involve mechanical failures. Among crashes that involve bad weather, the proportion that also involves mechanical failure is 80 per cent. 7. In exhibit 2, the proportion of crashes that involve both mechanical failure and bad weather is: a. .80 b. .49 c. * .16 d. .09 e. None of the above. Fill in a correct solution. Explanation: Let W= 'Bad Weather" and F= 'Equipment Failure'. The problem says 3 things: PW .20, PF .45, PF W .80 . The problem asks for PF W . By the Multiplication Rule, P F W P F W PW .80 .20 .16 8. In Exhibit 2, the proportion of crashes that involve neither bad weather nor mechanical failure is: a. *.51 b. .44 c. .84 d. .49 e. None of the above. Fill in a correct solution. [16] Explanation: If we use the notation above, the problem asks for P F W . We have shown in class that the event F W is the complement of F W , so P F W 1 PF W 1 PF PW PF W 1 .45.20.16 1.49 .51 . A diagram would help. At the end of Question 7, we had W F F .16 W .45 W W F F .16 .04 .20 . If we just fill in the numbers so that they add up, we get 1.00 .20 .29 .51 .80 .45 .55 1.00 9. In Exhibit 2, what is the proportion of crashes that involve mechanical failure that also involve bad weather. (3) [19] We were given PF W .80 . The question is asking for PW F . We can treat this as a Bayes’ Rule problem and say PW F PF W PW P F .80 .20 .2844 or we can look at the table and say .45 PW F .16 .2844 . PF .45 10. The number of samples of 6 that can be taken from a population of 10 (Assuming that order is not important) is: a. 5040 b. 1 million c.* 210 d. 10 e. None of the above – fill in correct answer. [21] 10 ! 10 9 8 7 5040 210 Explanation: C 610 4!6! 4 3 2 1 24 PW F 4 251y0721 3/23/07 Exhibit 3: Mansfield gives us the following data. x is the weight of a car in thousands of pounds and y is the miles per gallon. Row 1 2 3 4 5 6 x 2.6 3.6 3.8 2.9 3.2 3.6 19.7 y 26 18 23 38 21 22 148 From these numbers, I have computed the following sums and sample statistics. x 2 65 .77 , y 2 x 19 .7, y 148 , 3898 , x 3.2833 , y 24.6667 , s x2 0.217667 and s 2y 49 .466667 . Please do not waste time duplicating these calculations. xy . (3) 11. Using the data in Exhibit 3, Compute Solution: Row 1 2 3 4 5 6 x 2.6 3.6 3.8 2.9 3.2 3.6 19.7 y xy 26 18 23 38 21 22 148 67.6 64.8 87.4 110.2 67.2 79.2 476.4 [24] So xy 476 .4 12. Compute the sample covariance between weight and miles per gallon. What conclusion can you draw 19 .7 xy 476 .4 . I did the following for you. Then x from it? (2) Solution: We just found 3.2833 , 6 y 148 24 .6667 , s x2 6 s 2y y 2 ny n 1 2 x 2 nx 2 n 1 65 .77 63.2833 2 0.2179 (Minitab says 0.217667) and 5 3898 624 .6667 2 49 .4647 (Minitab says 49.466667). Now you can compute 5 x x y y xy nx y 476 .4 63.2833 24 .6667 1.9058 . This is negative, so x 5 n 1 n 1 tends to fall as y rises. No conclusion about the strength of the relationship is possible without variances. [26] 13. Compute the sample correlation between weight and miles per gallon. What can you say about its strength? (3) [29] s xy 1.9058 0.5808 . The square of this is .3373 on a zero to one Solution: rxy sx s y 0.217667 49 .466667 scale. This is not very strong, but neither is it negligible. s xy 5 251y0721 3/23/07 14. If the cost of a car in thousands of dollars is described by C 11x 0.5 , using only the numbers I computed and your results in questions 11-13, find: (4) [33] Explanation: We know that if w ax b and v cy d , Varw a 2Varx , Covw, v acCovx, y , and Corr w, v Sign(ac)Corr x, y . If our w C 11x 0.5 and v 1y 0 , a 11 and c 1 . a. s C2 , the sample variance of cost. s x2 0.217667 . So Var C 112 Var x 1210.217667 26 .3377 . b. s Cy , the covariance between cost and miles per gallon. s xy 1.9058 . So CovC, y 111Covxy 111.9058 20.9638 . c. rCy , The correlation between cost and miles per gallon. rxy 0.5808. CorrC, y Sign(111)Corrx, y 10.5808 0.5808 . Please do not waste our time by writing out a column of costs and using it and the column of miles per gallon to compute the statistics in question 14. 15. A machine has three components. Each has a 30 per cent chance of failure during the next month. (Assume that failure of one component is independent of failure of another.) If the device will work as long as at least one of the three components works, its chance of failure during the month is (rounded to two decimal places): (2.5) a. 30% b. *3% c. 90% d. 66% e. 72% f. None of the above. Explanation: The machine only fails if all components fail. Because of the independence assumption, we can multiply the probabilities to get .30 3 .027 16. A machine has three components. Each has a 30 per cent chance of failure during the next month. (Assume that failure of one component is independent of failure of another.) If all three components must work to get the device through the month, its chance of failure during the month is (rounded to two decimal places): (2.5) [38] a. 30% b. 3% c. 90% d. * 66% e. 72% f. None of the above. Explanation: The machine only works if all components work. If there is a 30% chance of a component failing, there is a 70% chance of the component working. Because of the independence assumption, we can multiply the probabilities to get the probability that all three components work is .70 3 . The probability of failure is thus 1 .70 3 .657 . 6 251y0721 3/23/07 17. Assume that x , y , and z are independent random variables. If we have the following information: y x z Mean 7 9 11 Standard 3 4 8 deviation Let v x y z . Find the mean and standard deviation of v. (3) Show your work! [41] Solution: We can add means and we can add variances of independent random variables. So the mean is Ev E x E y E z 7 9 11 27 . The variance is Varv Varx Var y Varz 32 4 2 8 2 9 14 64 89 . The standard deviation is 89 9.4340 . x 0 7 Exhibit 4: 1 .12 .18 y 9 .28 .42 18. Check the joint probability table in exhibit 4 for independence (2). Solution: We can expand this as x y 1 9 Px xPx 0 7 .12 .18 .28 .42 .40 .60 0 4.2 P y yP y y 2 P y .30 .3 .3 .70 6.3 56 .7 . But note that .12 = .30(.40) and so on. All the numbers 1.00 6.6 57 .0 4.2 x 2 Px 0 29 .4 29 .4 inside the table are products of the probabilities outside the table, so we can say that the two random variables are independent. 19. Compute E y and Var y in exhibit 4. (2.5) Px 1 , Ex xPx 4.2 E x x E y yP y 6.6 and E y y P y 57 .0 . Then 2 To summarize y 2 x 2 2 y Px 29 .4 Ey y2 E y 2 y2 57.0 6.62 13.44 . P y 1 , yP y 6.6 and 20. Compute Covx, y or xy and Corr x, y or xy in exhibit 4 (2.5) Since x and y are independent, their covariance and correlation must be zero. If you really like to work, 2 however, x2 E x 2 x2 29 .4 4.2 11 .76 . E xy .12 01 xyPxy .2809 .187 1 0 1.26 27 .72 . .42 7 9 0 26 .46 This means that xy Covxy Exy x y 27.72 4.26.6 0 and xy xy x y 0 0 . 11 .76 13 .44 7 251y0721 3/23/07 21. Find Px y 8 and P x 0 x y 8 in exhibit 4. (2) x 0 7 1 .12 .18 y 9 .28 .42 [50] x 0 7 .The values of x y are 1 1 8 y 9 9 16 , so the first probability sought is Px 0, y 1 Px 7, y 1 .12 ..18 .30. To do the second part, remember the Multiplication Rule says P A B Px 0 x y 8 .12 P A B .40 . . = .30 P x y 8 P B 8 251y0721 3/23/07 ECO251 QBA1 SECOND EXAM March 28, 2007 TAKE HOME SECTION Name: _________________________ Student Number: _________________________ Throughout this exam show your work! Neatness counts! Please indicate clearly what sections of the problem you are answering and what formulas you are using. Part II. Do all the Following (12 Points) Show your work! 1. Seymour Butz’s student number is 976500 Take the following set of numbers: 100 200 300 400 500 600 700 and use your Student Number to provide the last digit of the last six numbers, so that, for Seymour, the numbers would become 100, 209, 307, 406, 505, 600, 700. Compute a sample standard deviation for the resulting numbers. Do not invent any probabilities. (2- 2point penalty for not doing) Solution: If you are in a hurry compute columns (1) and (2) then find the sample mean and use the x 1417792 7403 .857 2 46014 .6108 . If time is not n 1 6 important, compute columns (1), (3) and (4) and use the definitional formula computational formula. s 2 s 2 x x n 1 (1) (3) 2 x x 2 -303.857 92329.1 -194.857 37969.3 -96.857 9381.3 2.143 4.6 101.143 10229.9 196.143 38472.1 296.143 87700.7 0.001 276087.0 x 2827 , x x x (4) xx 2 100 10000 209 43681 307 94249 406 164836 505 255025 600 360000 700 490000 2827 1417791 n 7, nx 2 276087 .665 46014 .6108 6 (2) x x 1 2 3 4 5 6 7 2 2 276087 .0 s 2 2 1417792 so x x 2 nx 2 n 1 2827 403 .857 , 7 x x 0 276087 .665 1417792 7403 .857 2 46014 .6108 6 6 s 46014.6108 214.51 9 251y0721 3/23/07 2. Take exactly the same numbers as before and assume that they have the following probabilities: .05, .07, .08, .10, .10, .12, .48. Show that this represents a valid distribution and compute the population standard deviation from the distribution. (2). Find Px 500 and the median of the distribution. (1) Seymour would now have: x P x 100 .05 209 .07 307 .08 406 .10 505 .10 600 .12 700 .48 Solution: If you are in a hurry compute columns (1), (2), (3) and (4) then find the mean E x xPx 543 .29 and use the computational formula. 2 E x 2 2 331484 543 .29 2 36319 .9759 . If time is not important, compute columns (1), (2), (3), (5), (6) and (7) and use the definitional formula 2 E x 2 (1) x 1 2 3 4 5 6 7 100 209 307 406 505 600 700 (2) (3) (4) P x xPx x P x 0.05 0.07 0.08 0.10 0.10 0.12 0.48 1.00 5.00 14.63 24.56 40.60 50.50 72.00 336.00 543.29 500 3058 7540 16484 25503 43200 235200 331484 2 (5) x -443.29 -334.29 -236.29 -137.29 -38.29 56.71 156.71 (6) x 2 Px 36319.7 . (7) x Px x 2 Px -22.1645 -23.4003 -18.9032 -13.7290 -3.8290 6.8052 75.2208 0.0000 9825.3 7822.5 4466.6 1884.9 146.6 385.9 11787.9 36319.7 Note that to show that this is a valid distribution, we should check to see that all probabilities are between zero and one and that the sum of column (2) is one. xPx 543 .29 , E x 2 x 2 Px 331484 , Px 1 , E x x Px 0 , Ex E x 331484 543 .29 36319 .9759 E x 2 x 2 2 2 Px 36319.7 36319.9 190.578 Px 500 .05 .07 .08 .10 .30 . The median is 600, since there are approximately equal probabilities on either side. [5] 2 2 2 10 251y0721 3/23/07 3. As everyone knows, a jorcillator has two components, a phillinx and a flubberall. It seems that the jorcillator only works as long as one component works (so that it fails in the first month only if both components fail). The probability of the phillinx failing is given by a continuous uniform distribution between c1 and d1 with c1 1 and d1 4 0.2 g , where g is the last digit of your student number. For example, if the life of the phillinx is represented by x1 , then the chance of the phillinx failing in the 3 rd month is P2 x1 3 and the probability of it failing after the third month is Px1 3 . For example: Ima Badrisk has the number 375292, so the top of her distribution is d1 4 0.22 4.4 . Depending on your number d1 could go up to 5. The probability of the flubberall failing is given by the continuous uniform distribution between c2 and d 2 with c2 .9 0.1g and d 2 4 . For example: Ima Badrisk has the number 375292, so the bottom of her distribution is c 2 .9 0.052 .8 . If x2 represents the life of the flubberall, the probability of the flubberall failing in the first month is P0 x2 1 , the probability of the flubberall failing in the second month is P1 x2 2 etc. We will divide time into four periods with the last period being ‘beyond the third month.’ The jorcillator is guaranteed to fail in one of the four periods. Failure of components is assumed to be independent, so if the probability of the phillinx failing in the first month is .1, and the probability of the flubberall failing in the first month is .7, the probability of both components failing in the first month is (.1) (.7) =.07 (This is not the necessarily the probability that the jorcillator will fail in the first month!) In order to maintain my sanity, use the following events. Failure of the phillinx in period 1, 2, 3, 4 are events A1, A2 , A3 , and A4 . Failure of the flubberall in period 1, 2, 3, 4 are events B1, B2 , B3 , and B4 . Failure of the jorcillator in period 1, 2, 3, 4 are events C1, C2 , C3 , and C 4 . a) What is the probability that the phillinx will fail in month 1? Month 2? Month 3? After Month 3? (1.5) b) What are the mean and standard deviation of the philinx’s failure time? (1.5) c) What is the probability that the jorcillator will fail in the first month? (2) d) What is the probability that the jorcillator will fail in the second month? (1) e) What is the probability that the jorcillator will fail in the third month? (1) f) What is the probability that the jorcillator will last beyond 3 months? (1) g) Find the probability that the jorcillator and the Phillinx both fail in the second month (1) h) Find the probability that the phillinx fails in the second month, given that the jorcillator fails in the second month i.e. P A C (1) i) Demonstrate Bayes’ rule by showing how to get the probability that the jorcillator fails in the second month, given that the phillinx fails in the second month, from your result in h). (1) Solution: Phillinx has a Continuous Uniform distribution between 1 and 4.4. Flubberall has a Continuous Uniform distribution between .8 and 4 Each component has probabilities that add to 1. The 16 possible joint events must have probabilities that add to 1. For the Phillinx, make a diagram. Show a box between 1 and 4.4 with an area of 1 and a height of 1 1 c d 1 4.4 .2941 . b) According to “Great Distributions” 2.7 , 4 . 4 1 3. 4 2 2 2 d c2 4.4 12 0.9633 . So 0.9633 0.9815 12 12 Divide the box into the four events by putting vertical lines at 1, 2 and 3. Note that the first area has no height so that its probability is zero. 11 251y0721 3/23/07 a), c), d), f). Events A1 P0 x 1 0 A2 P1 x 2 1.2941 .2941 A3 P2 x 3 1.2941 .2941 A4 . Px 3 4.4 3.2941 .4117 These add to .9999 For the flubberall, make a diagram. Show a box between .8 and 4 with a height of 1 1 .3125 . 4 0. 8 3 . 2 Divide the box into the four events by putting vertical lines at 1, 2 and 3. B1 P0 x 1 1 .8.3125 = .0625 B 2 P1 x 2 1.3125 .3125 B 3 P2 x 3 1.3125 .3125 B4 Px 3 4 3.3125 .3125 Joint Event A1 B1 Probability 0 When Fails Period 1 A1 A1 A1 A2 A2 A2 A2 A3 A3 A3 A3 A4 A4 A4 A4 0 Period 2 0 Period 3 0 Period 4 B2 B3 B4 B1 B2 B3 B4 B1 B2 B3 B4 B1 B2 B3 B4 .2941 .0625 = .01838 .2941 .3125 = .09191 .2941 .3125 = .09191 .2941 .3125 = .09191 .2941 .0625 = .01838 .2941 .3125 = .09191 .2941 .3125 = .09191 .2941 .3125 = .09191 .4117 .0625 = .02573 .4117 .3125 = .12866 .4117 .3125 = .12866 .4117 .3125 = .12866 Period 2 Period 2 Answer to g) Period 3 Period 4 Period 3 Period 3 Period 3 Period 4 Period 4 Period 4 Period 4 Period 4 c) What is the probability that the jorcillator will fail in the first month? (2) PC1 P A1 B1 0 d) What is the probability that the jorcillator will fail in the second month? (1) This event is the union of A1 B 2 , A2 B1 and A2 B 2 . Its probability is PC 2 0 + .01838 + .09191 = .11029. e) What is the probability that the jorcillator will fail in the third month? (1) This event is the union of A2 B 3 , A3 B1 , A3 B 2 and A3 B 3 . Its probability is PC3 = .09191 + .01838 + .09191 + .09191 = .29411 f) What is the probability that the jorcillator will last beyond 3 months? (1) If either component lasts for 4 months, the machine will last for four months P A4 B4 .4117 .3125 .12866 .59554 This is also the union of A2 B4 , A3 B4 , A4 B1 , A4 B 2 , A4 B 3 and A4 B4 PC 4 .09191 + .09191 + .02573 + .12866 + .12866 + .12866 = .59553. 12 251y0721 3/23/07 g) Find the probability that the jorcillator and the Phillinx both fail in the second month (1) We already know that failure in the second month is the union of A1 B 2 , A2 B1 and A2 B 2 , and its probability is PC 2 0 + .01838 + .09191 = .11029. A2 is the event that contains failure of the Phillinx in the second month. It is contained in the joint events A2 B1 and A2 B 2 the probability of the union of these two events is P A2 C 2 P A2 B1 P A2 B2 = .01838 + .09191= .11029. h) Find the probability that the phillinx fails in the second month, given that the jorcillator fails in P A2 C 2 the second month i.e. P A2 C 2 (1) Use the multiplication rule PA2 C 2 1 PC 2 i) Demonstrate Bayes’ rule by showing how to get the probability that the jorcillator fails in the second month, given that the phillinx fails in the second month, from your result in h). (1) P A2 .2941 , PC 2 .11029 and P A2 C2 1 We can use the multiplication rule to say PC 2 A2 P A2 C 2 .11029 .37501 . According to Bayes’ Rule P C 2 A2 P A2 .2941 PA2 C 2 PC 2 P A2 1.11029 .37501 .2941 \ 13