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Part 1: Multiple Choice. Circle the letter corresponding to the best answer.
1. In the town of Tower Hill, the number of cell phones in a household is a random variable W with the following distribution: W 0 1 2 3 4 5 P(W) 0.1 0.1 0.25 0.3 0.2 0. The probability that a randomly-selected household has at least two cell phones is (a) 0.20. (b) 0.25. (c) 0.55. 2. A random variable Y has the following distribution: (d) 0.70. (e) 0.80. The value of the constant C is: (a) 0.10. (b) 0.15. (c) 0.20. (d) 0.25. (e) 0.75. 3. A rock concert producer has scheduled an outdoor concert. If it is warm that day, she expects to make a $20,000 profit. If it is cool that day, she expects to make a $5000 profit. If it is very cold that day, she expects to suffer a $12,000 loss. Based upon historical records, the weather office has estimated the chances of a warm day to be 0.60; the chances of a cool day to be 0.25. What is the producer’s expected profit? (a) $5, (b) $11, (c) $13, (d) $13, (e) $15,
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2 , but only if X and Y are independent. (e) None of these.