Hackernotes, Pima Community College © Wayne Hacker 2007. All rights reserved. Business Mathematics I: Math 173 Sample Exam 2-Solutions Name: Print your name neatly. If you forget to write your name, or write so sloppy that I can’t read it, you can lose all of the points! Answer all the questions that you can. Circle your answer. All problems are worth 1 point each. Do any 25 of the 26 problems. You may do all 26 if you like, but I will stop grading after you have 25 problems correct. In other words, you cannot score more than 100% on this exam. You must show how you arrived at the answer in order to receive any credit for the problem. Problems for which only an answer is given with no supporting work, will receive a score of zero for that problem. DO NOT WRITE ON THIS PAGE IN THE SPACE BELOW 1. _______ 6. _______ 11. _______ 16. _______ 21. _______ 2. _______ 7. _______ 12. _______ 17. _______ 22. _______ 3. _______ 8. _______ 13. _______ 18. _______ 23. _______ 4. _______ 9. _______ 14. _______ 19. _______ 24. _______ 5. _______ 10. _______ 15. _______ 20. _______ 25. _______ 26. _______ STUDY GUIDE FOR EXAM 2: Topics covered on this exam: Basic Probability, Conditional Probability and Independence, The Law of Total Probability and Bayes’ Theorem. What homework sets should you review for this exam: Homework sets 5, 6, 7. Warning: The actual exam will need not be the same questions, but the number of problems, types of problems, and level of difficulty will be similar. - Business Mathematics I, Sample Exam2: page 2 - Problems 1-15 are designed to test your skills at using formulas. These are all considered elementary problems. 1. (Basic Probability) Suppose that P (E ) = .4, P (F ) = .5, and P ( E ∩ F ) = .2. Find P ( E ∪ F ) . Solution: P ( E ∪ F ) = P ( E ) + P ( F ) − P ( E ∩ F ) = .4 + .5 − .2 = .7 2. (Basic Probability) Suppose that P (E ) = .4, P (F ) = .5, and P ( E ∪ F ) = .7. Find P ( E ∩ F ) . Solution: P ( E ∩ F ) = P ( E ) + P ( F ) − P ( E ∪ F ) = .4 + .5 − .7 = .4 3. (Basic Probability) Suppose that P (E ) = .4, P (F ) = .5, and P ( E ∪ F ) = .7. Find P(( E ∪ F ) C ) . Solution: P(( E ∪ F ) C ) = 1 − P( E ∪ F ) = 1 − .7 = .3 4. (Basic Probability) Suppose that P (E ) = .4, P (F ) = .5, and P ( E ∪ F ) = .7. Find P ( E C ∩ F C ) . Solution: P( E C ∩ F C ) = P(( E ∪ F ) C ) = 1 − P( E ∪ F ) = 1 − .7 = .3 The first equality follows from De Morgan’s Law. 5. (Basic Probability) Suppose that P (E ) = .4, P (F ) = .5, and P ( E ∩ F ) = .2. Find P ( F − E ) . Solution: Let F be the blue circle in the Venn diagram. Then we want the mass of the “right moon” = mass of the blue disk − mass of the “football” (the intersection) P ( F − E ) = P ( F ) − P ( E ∩ F ) = .5 − .2 = .3. E 6. (Basic Probability) Suppose that P (E ) = .6, P (F ) = .5, and P ( E ∩ F ) = .2. Find P (( F − E ) ∪ ( E − F )) = P(exactly one of the events E or F, but not both). Solution: P (( F − E ) ∪ ( E − F )) = P ( E ∪ F ) − P ( E ∩ F ) = P ( E ) + P ( F ) − 2 ⋅ P ( E ∩ F ) = .6 + .5 −2(.2) = .7 (the mass of the left and right moons) 7. (Conditional Probability) Suppose that P (E ) = .4, P (F ) = .5, and P ( E ∩ F ) = .2. Compute P ( E | F ) . Solution: Applying the definition of conditional probability yields P( E | F ) = P( E ∩ F ) .2 2 = = = .4 . P( F ) .5 5 F - Business Mathematics I, Sample Exam2: page 3 - 8. (Conditional Probability) Suppose that P (E ) = .4, P (F ) = .5, and P ( E ∩ F ) = .2. Compute P ( F | E ) . Solution: Applying the definition of conditional probability yields P( F | E ) = P( E ∩ F ) .2 1 = = = .5 . P( E ) .4 2 Notice that P ( E | F ) ≠ P ( F | E ) . This is generally the case, given two events E and F. That means that when we write conditional probabilities, the order of the events is important. We can’t interchangeably write P ( E | F ) when we mean P ( F | E ) , and vice versa. This makes realworld sense. Suppose E is the event that a person is a woman, and F is the event that a person is Condoleezza Rice. Then P ( E | F ) = 1 (if someone’s Condoleezza Rice, then she’s certainly a woman), but P ( F | E ) is a very small number—out of the 3 billion or so women in the world, only one is Condoleezza Rice. Be careful: order matters! 9. (Independence) Suppose that P (E ) = .4, P (F ) = .5 and that E and F are independent events. Compute P ( E ∩ F ) . Solution: Applying the definition of independent events P ( F ∩ E ) = P ( E ) P ( F ) = (.4)(.5) = .2. 10. (Independence) Suppose that P (E ) = .5, P (F ) = .8 and that E and F are independent events. Compute P ( E | F ) . Solution: Applying the definition of conditional probability (first equality) together with the definition of independence (the second equality) yields P( E ∩ F ) P( E ) P( F ) = = P( E ) = .5 P( F ) P( F ) Recall: A second definition of independence is two events E and F are independent if P ( E | F ) = P ( E ) . Thus a second way to solve this problem is just to write P ( E | F ) = P ( E ) =.5. P( E | F ) = 11. (Independence) Suppose that P (E ) = .5, P (F ) = .8 and that E and F are independent events. Compute P ( F | E ) . - Business Mathematics I, Sample Exam2: page 4 - Solution: Applying the definition of independent events P ( F | E ) = P ( F ) = .8. Since F is independent of E, the probability of F does not change if the event F is conditioned on the event E. Problems 12-15. (Law of Total Probability and Bayes’ Theorem) Let B1 and B2 partition the sample space Ω. Suppose we are given the following information: 2 1 2 1 P ( B1 ) = , P ( B2 ) = , P ( A | B1 ) = , and P ( A | B2 ) = . 3 3 3 2 12. Find P ( A) . Solution: P ( A) = P ( B1 ) P ( A | B1 ) + P ( B2 ) P ( A | B2 ) = 2 2 1 1 4 1 11 ⋅ + ⋅ = + = 3 3 3 2 9 6 18 13. Find P( B1 | A) . 4 P ( B1 ) P( A | B1 ) 8 = 9 = Solution: P( B1 | A) = 11 P ( B1 ) P ( A | B1 ) + P ( B2 ) P ( A | B2 ) 11 18 Suppose we are given the following information: 1 4 1 1 P( B1 ) = , P ( B2 ) = , P( A | B1 ) = , and P ( A | B2 ) = . 5 5 3 2 14. Find P ( A) . Solution: P ( A) = P ( B1 ) P ( A | B1 ) + P ( B2 ) P ( A | B2 ) = 1 1 4 1 2 4⋅3 14 7 ⋅ + ⋅ = + = = 5 3 5 2 5 ⋅ 3 ⋅ 2 5 ⋅ 3 ⋅ 2 30 15 15. Find P( B1 | A) . 1 P( B1 ) P( A | B1 ) 1 = 15 = Solution: P( B1 | A) = 7 P( B1 ) P( A | B1 ) + P( B2 ) P( A | B2 ) 7 15 - Business Mathematics I, Sample Exam2: page 5 - 16. (Basic Probability) Red Hat and SUSE are companies that package the GNU-Linux operating system for distribution. The history of the stock prices of these two companies has been analyzed using the frequency definition of probability. It was found that the probability that Red Hat goes up tomorrow is 40% and that the probability that SUSE goes up tomorrow is 50%, and that the probability that both Red Hat and SUSE go up tomorrow is 20%. What is the probability that either Red Hat or SUSE go up tomorrow? (a) 0 (c) .2 (e) .4 (g) .6 (i) .8 (k) 1 (b) .1 (d) .3 (f) .5 (h) .7 (j) .9 (l) none of the these Solution: Answer: (h) Step 1: Write down the events. Let R = event Red Hat’s stock price goes up S = event SUSE’s stock price goes up Step 2: Write down the given information. P ( R ) = .4, P(S) = .5, P(R and S) = P ( R ∩ S ) = .2 Step 3: Write down what you want. P(R or S) = P ( E ∪ F ) = P ( E ) + P ( F ) − P ( E ∩ F ) = .4 + .5 − .2 = .7 17. (Basic Probability) A health inspector will inspect your restaurant on one of the weekdays {M, T, W, R, F} during the coming two weeks, and is equally likely to arrive on any of the days. What is the probability that the health inspector will show up on a Monday or a Wednesday? (a) 0 (c) .2 (e) .4 (g) .6 (i) .8 (k) 1 (b) .1 (d) .3 (f) .5 (h) .7 (j) .9 (l) none of the these Solution: Answer: (e) Since the events M and W are disjoint, we have 1 1 2 4 P(Monday or Wednesday) = P(M) + P(W) = + = = = 0 .4 5 5 5 10 - Business Mathematics I, Sample Exam2: page 6 - 18. (Basic Probability) You are promoting an outdoor concert for the coming Saturday (2 days from now). It is a fact that weather records are fairly accurate over 3 day periods. Records indicate that the probability of rain is 0.4, the probability of gale-force winds is 0.5, and the probability of rain or gale-force winds is 0.8. What is the probability that it neither rains nor has high winds? (a) 0 (c) .2 (e) .4 (g) .6 (i) .8 (k) 1 (b) .1 (d) .3 (f) .5 (h) .7 (j) .9 (l) none of the these Solution: Answer: (c) Step 1: Write down the events. Let R = event of rain W = event of gale-force winds Step 2: Write down the given information. P(R) = .4, P(W) = .5, P(R or W) = P ( R ∪ W ) = .8 Step 3: Write down what you want. P(neither R nor W) = P(not R and not W) = P( R C ∩ W C ) (convert words into mathematical symbols) = P(( R ∪ W ) C ) (by De Morgan’s Law) = 1 − P( R ∪ W ) = 1− .8 = .2 - Business Mathematics I, Sample Exam2: page 7 - 19. (Basic Probability) You have just opened a restaurant and have applied for a liquor license and a smoking permit (to allow smoking in a closed-off part of the restaurant). You are friends with the city inspector and he has told you that based on past experience you have a 60% chance of getting a liquor license, a 40% chance of getting a smoking permit, and a 20% chance of getting both permits approved. What is the probability that you will be given exactly one of the permits? (a) 0 (c) .2 (e) .4 (g) .6 (i) .8 (k) 1 (b) .1 (d) .3 (f) .5 (h) .7 (j) .9 (l) none of the these Solution: Answer: (g) Step 1: Write down the events. Let L = event of obtaining a Liquor license S = event of obtaining a Smoking license Step 2: Write down the given information. P(L) = .6, P(S) = .4, P(L and S) = P ( L ∩ S ) = .2 Step 3: Write down what you want. P(( L − S ) ∪ ( S − L)) = P( L − S ) + P( S − L) (disjoint sets) = ( P( L) − P( L ∩ S )) + ( P( S ) − P( L ∩ S )) = P ( L) + P ( S ) − 2 P ( L ∩ S ) = .6 + .4 − 2(.2) = .6 The idea behind the solution: P(Exactly one permit) = mass of the left moon + mass of the right moon = P (( A − B ) ∪ ( B − A)) . The Venn diagrams below show that these sets are disjoint = --- Notice that we must subtract A ∩ B out from the union, because we want to exclude the possibility of being in both sets A and B. We can also write the probability of “exactly one” as P (( A − B ) ∪ ( B − A)) = P ( A ∪ B ) − P ( A ∩ B ) . - Business Mathematics I, Sample Exam2: page 8 - 20-22. (Independence) Consider three identical boxes that we shall refer to as box1, box2, and box3. Each box contains 100 parts, one of which is defective. You randomly choose one part from each box. Start by writing down the events and their associated probabilities. Solution: Step 1: Write down the events. ⎧ Di = the event of choosing a defective part from box i Let ⎨ C ⎩ Di = the event of choosing a non - defective part from box i Step 2: Write down what you know. P( Di ) = .01 and P ( DiC ) = 1 − P ( Di ) = .99 NOTE: The first two steps are the same for problems 16-18. The key fact to be aware of in this problem is that all of our selections are independent. Our selection from box1 has no bearing on our selection in box2, or box3. 20. What is the probability of selecting 3 non-defective parts? Solution: To choose three non-defective parts you must choose a non-defective part from box1 and a non-defective part from box2 and a non-defective part from box3. This can be expressed more compactly by the set: D1C ∩ D2C ∩ D3C . We want to compute P ( D1C ∩ D2C ∩ D3C ) . Using the independence assumption: P ( D1C ∩ D2C ∩ D3C ) = P ( D1C ) P ( D2C ) P ( D3C ) = (.99)(.99)(.99) = (.99) 3 ≈ .9703 21. What is the probability of selecting a non-defective part from box1, a defective part from box2, and a non-defective part from box3? Solution: We seek the event D1C ∩ D2 ∩ D3C . We want to compute P ( D1C ∩ D2 ∩ D3C ) . Using the independence assumption: P ( D1C ∩ D2 ∩ D3C ) = P ( D1C ) P ( D2 ) P ( D3C ) = (.99)(.01)(.99) = (.99) 2 (.01) ≈ .0098 - Business Mathematics I, Sample Exam2: page 9 - 22. What is the probability of selecting 1 defective part and 2 non-defective parts? Solution: We can select one defective part and 2 non-defective parts in 3 different ways: D1 ∩ D2C ∩ D3C ( the defective part comes from box 1) D1C ∩ D2 ∩ D3C ( the defective part comes from box 2) D1C ∩ D2C ∩ D3 ( the defective part comes from box 3) We want the probability of selecting D1 ∩ D2C ∩ D3C , or D1C ∩ D2 ∩ D3C , or D1C ∩ D2C ∩ D3 : P (( D1 ∩ D2C ∩ D3C ) ∪ ( D1C ∩ D2 ∩ D3C ) ∪ ( D1C ∩ D2C ∩ D3 )) = P ( D1 ∩ D2C ∩ D3C ) + P ( D1C ∩ D2 ∩ D3C ) + P ( D1C ∩ D2C ∩ D3 ) = 3P( D )( P ( D C )) 2 ≈ 3(.0098) = .0294, where the event D is short-hand for D1 , D2 , or D3 . - Business Mathematics I, Sample Exam2: page 10 - 23. (Conditional Probability) In a certain region of the country, atmospheric conditions are classified into a finite number of categories, and weather records involving the events of rain and gale-force winds are kept for each of these categories. Weather records indicate that under category 1 atmospheric condition there is a 40% chance of rain, a 30% chance of gale-force winds, and a 50% chance that it either rains or has gale-force winds. Suppose you wake up on a day with category 1 conditions and find that it is raining. What is the probability of gale-force winds? (Assume that you know the all of the categories and can classify them correctly.) Solution: Step 1: Write down the events. ⎧ R = the event of rain Let ⎨ ⎩W = the event of gale - force winds Step 2: Write down what you know. P(R) = .4, P(W) = .3, and P ( R ∪ W ) = .5 . Step 3: Write down what you want. We are told that it is raining. Thus the event R has occurred. This means that we want to know the probability of gale-force winds given that it is raining. In symbols, we want P(W | R) . Step 4: Solve Using the definition of conditional probability and P(R) = .4 leads to the following equation: P(W | R) = P( R ∩ W ) P( R ∩ W ) = . P( R) .4 (Equation 1) We cannot evaluate the expression on the right-hand side because we don’t know P ( R ∩ W ) . However, we can use the formula P ( R ∪ W ) = P ( R ) + P (W ) − P ( R ∩ W ) to solve for P ( R ∩ W ) . Substituting the values found in step 2 into the formula yields .5 = .4 + .3 − P ( R ∩ W ) . Solving for P ( R ∩ W ) in the equation gives us P ( R ∩ W ) = .2 . For the last step, we must substitute this value in to equation 1 to find the desired result. P (W | R ) = P ( R ∩ W ) .2 1 = = .4 .4 2 - Business Mathematics I, Sample Exam2: page 11 - 24. (Law of Total Probability) You are selling a product in an area where 30% of the people live in the city; the rest live in the suburbs. 20% of the city dwellers (urbanites) use your product; and 10% of the suburbanites use your product. What fraction of the people in the area use your product? Solution: Step 1: Define the events: let Ω = all of the potential customers in your area U = the person is an urbanite S = the person is a suburbanite C = the person is a customer C C = the person is not a customer Step 2: Write down the given information: First, notice that the events U and S partition the sample space Ω. The events C and CC also partition the set Ω; however, as shown below, the given information suggests that we take U and S as our partition for this problem. Given: P (U ) = 0.30, P ( S ) = 1 − P (U ) = 1 − 0.30 = 0.70 (since U and S partition Ω), P (C | U ) = 0.20 , (since the events U and S have occurred, they should be the partitions of Ω) P (C | S ) = 0.10 . Step 3: Write down what you are trying to solve for: Want P (C ). We can compute this term using the law of total probability with U and S as our partition. P (C ) = P (U ) P (C | U ) + P ( S ) P (C | S ) = (.3)(.2) + (.7)(.1) = .06 + .07 = .13 - Business Mathematics I, Sample Exam2: page 12 - 25. (Law of Total Probability) A high school conducts random drug tests on its students. Of the student body, it is known that 8% use marijuana regularly; 17% use it occasionally; and 75% never use it. The testing regime is not perfect: regular marijuana users falsely test negative 5% of the time; occasional users falsely test negative 13% of the time; and non-users falsely test positive 11% of the time. What percentage of the student body will test positive for marijuana use? Solution: Step 1: Define the events: let Ω = all of the students in the high school (the entire student body) R = the person uses marijuana regularly O = the person uses marijuana occasionally N = the person never uses marijuana T + = the person tests positive for marijuana use T − = the person tests negative for marijuana use Notice that (T + ) C = T − . If we assume that there were no inclusive tests, and if all of the students were tested, then T + and T − would partition Ω. However, the data suggests that we use a different partition. The sets R, O, and N, also partition the sample space, since R ∪ O ∪ N = Ω , R ∩ O = Ø, R ∩ N = Ø, and O ∩ N = Ø. We will use these sets as our partition. Step 2: Write down the given information: Given: P ( R ) = 0.08, P (O ) = 0.17 , P ( N ) = 0.75 , From the data we are given the probability of testing positive or negative given that the events R, O, and N have occurred. Thus based on the data, we should use R, O, and N to partition Ω. From the problem description we can infer the following: P(T − | R) = 0.05 ⇒ P(T + | R) = 1 − P(T − | R) = 1 − 0.05 = .95 , P(T − | O) = 0.13 ⇒ P(T + | O ) = 1 − P(T − | O) = 1 − 0.17 = .87 , P (T + | N ) = 0.11 ⇒ P(T − | N ) = 1 − P(T + | N ) = 1 − 0.11 = .89 . Step 3: Write down what you are trying to solve for: Want P(T + ) . We can compute this term using the law of total probability with R, O, and N as our partition. - Business Mathematics I, Sample Exam2: page 13 - P(T + ) = P( R) P(T + | R) + P (O) P(T + | O) + P( N ) P (T + | N ) = (.08)(.95) + (.17)(.87) + (.75)(.11) = .3064 26. (Bayes’ Theorem) Suppose that we have two identical boxes: box 1 and box 2. Box 1 contains 5 red balls and 3 blue balls. Box 2 contains 2 red balls and 4 blue balls. A box is selected at random and exactly one ball is drawn from the box. Given that the selected ball is blue, what’s the probability that it came from box 2? Solution: Use the law of total probability. Step 1: Define the events: let ⎧Ω = all balls ⎪ B = event you select box 1 ⎪⎪ 1 ⎨ B2 = event you select box 2 ⎪ R = event you select a red ball ⎪ ⎪⎩ B = event you select a blue ball Step 2: Write down the given information: First, notice that the events B1 and B2 partition the sample space Ω. Given: P ( B1 ) = 3 4 2 1 1 , P ( B2 ) = , P ( B | B1 ) = , P ( B | B2 ) = = 8 6 3 2 2 . Step 3: Write down what you are trying to solve for: Want: P( B2 | B) . We will need Bayes’ theorem to compute this probability. We first apply the law of total probability to compute P ( B ) : P ( B ) = P ( B1 ) P ( B | B1 ) + P ( B2 ) P ( B | B2 ) = 1 3 1 2 3 1 9 + 16 25 1 ⋅ + ⋅ = + = = ≈ 2 8 2 3 16 3 48 48 2 Next, we apply Bayes’ theorem to arrive at the desired solution: 1 P ( B2 ) P ( B | B2 ) 16 P ( B2 | B ) = = 3 = . P( B1 ) P( B | B1 ) + P( B2 ) P( B | B2 ) 25 25 48
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