STAT-110: Homework #12

STAT-110

Instructor: Scott Street

Homework #12 Solutions


  1. Probability is a measure of how likely an event is to occur. Match one of the probabilities that follow with each statement of likelihood given. (The probability is usually a much more exact measure of likelihood than is the verbal statement.)

    00.010.30.60.991

    1. This event is impossible. It can never occur.

      This implies that the probability is 0.

    2. This event is certain; it will occur on every trial of the random phenomenon.

      This implies that the probability is 1.

    3. This event is very unlikely, but it will occur once in a while in a long sequence of trials.

      This implies that the probability is near zero but greater than zero; 0.01 satisfies this statement.

    4. This event will occur more often than not.

      This implies that the probability is greater than one-half but less than one; 0.6 and 0.99 satisfy this statement.

  2. Consider the following two scenarios.

    1. A gambler knows that red and black are equally likely to occur on each spin of a roulette wheel. He observes five consecutive reds occur and bets heavily on black at the next spin. Asked why, he explains that black is "due by the law of averages." Explain to the gambler what is wrong with this reasoning.

      The wheel is not affected by its past outcomes; it has no memory. Outcomes are independent. So on any one spin, black and red remain equally likely.

    2. After hearing you explain why red and black are still equally likely after five reds on the roulette wheel, the gambler moves to a poker game. He is dealt five straight red cards. He remembers what you said, and assumes that the next card dealt in the same hand is equally likely to be red or black. Is the gambler right or wrong, and why?

      Removing a card changes the composition of the remaining deck, so successive draws are not independent. If you hold 5 red cards, the deck now contains 5 fewer red cards (it has 26 black cards and 21 red cards), so your chance of another red card decreases.

  3. Exactly one of Brown, Chavez, and Williams will be promoted to partner in the law firm that employs them all. Brown thinks she has probability 0.25 of winning the promotion and that Williams has probability 0.2. What probability does Brown assign to the outcome that Chavez is the one promoted?

    The sum of the probabilities must equal one; therefore, the probability that Chavez is the one promoted can be found in the following manner:

    P(Brown Promoted) + P(Chavez Promoted) + P(Williams Promoted) = 1
    P(Chavez Promoted) = 1 - P(Brown Promoted) - P(Williams Promoted)
    P(Chavez Promoted) = 1 - 0.25 - 0.2 = 1 - 0.45 = 0.55

  4. Figure 7-2 (below) displays four assignments of probability to the outcomes of rolling a single die. Which, if any, is correct for this die can be discovered only by rolling the die many times. But some of the models are not legitimate assignments of probability. Which are legitimate and which are not, and why?

    Figure 7-2
    Probability
    OutcomeModel 1Model 2Model 3Model 4
    Die 11/71/31/31
    Die 21/71/61/61
    Die 31/71/61/62
    Die 41/701/61
    Die 51/71/61/61
    Die 61/71/61/61

    In order for a probability model to be legitimate, the probabilities must be between 0 and 1 (inclusive) and the sum of the probabilities must be 1.

    • Model 1 has each probability between 0 and 1; however, the sum of the probabilities is not 1 (it is actually 6/7). Therefore, Model 1 is not legitimate.

    • Model 2 has each probability between 0 and 1, and the sum of the probabilities equals 1. Therefore, Model 2 is legitimate. (This model indicates that there is no "4" face and there are two "1" faces.)

    • Model 3 has each probability between 0 and 1; however, the sum of the probabilities is not 1 (it is actually 7/6). Therefore, Model 3 is not legitimate.

    • Model 4 has probabilities greater than 1, and the sum of the probabilities is not 1 (it is actually 8). Therefore, Model 4 is not legitimate.

  5. Using the interpretation of probability as long-run relative frequency, explain carefully why the following rule is true in any legitimate probability model:

    The probability that an event does not occur is one minus the probability that the event does occur.

    On any trial, the event either does or does not occur. So the percent of trials on which the event does not occur plus the percent of trials on which the event occurs is 100% (or 1.00), or all of the trials. Since we estimate probabilities with these relative frequencies, it is clear that the two probabilities must sum to 1 (or 100%). This gives us the following results:

    P(Event) + P(No Event) = 1
    P(No Event) = 1 - P(Event)

  6. The Connecticut State Lottery (in its original simple form and ignoring some gimmicks that raise the payout slightly) awarded at random, for each of the 100,000 50-cent tickets sold,

    1 $5000 prize
    18 $200 prizes
    120 $25 prizes
    270 $20 prizes

    What is the expected value of the winnings of one ticket in this lottery?

    There are 1 + 18 + 120 + 270 = 409 winning tickets. Since there are 100,000 tickets, we see that there are 100,000 - 409 = 99,591 losing (or $0 prize) tickets. The expected value of a ticket is the sum of the prizes times their probabilities as follows:

    Therefore, the expected value of a ticket is about 17 cents.

  7. Consider the following exercise.

    1. What is the expected number of female offspring produced by a female Asian stochastic beetle? (See Example 12 in Section 7.2 for this insect's reproductive pattern [textbook page 355].)

      The female Asian stochastic beetles have the following pattern of reproduction:

        20% of females die without female offspring
        30% have one female offspring
        50% have two female offspring

      The expected number of female offspring produced by a female Asian stochastic beetle is the sum of the number of offspring times their probabilities as follows:

      Therefore, the expected number of female offspring is about 1.3 beetles.

  8. A life insurance company sells a term insurance policy to a 21-year-old male that pays $20,000 if the insured dies within the next five years. The probability that a randomly chosen male will die each year can be found in mortality tables. The company collects a premium of $100 each year as payment for the insurance. The amount that the company earns on this policy is $100 per year, less the $20,000 that it must pay if the insured dies. Here are the probabilities for the possible amounts the company can earn. Calculate the expected value of the earnings.

    Age at death212223242526 and up
    Payout-$19,900-$19,800-$19,700-$19,600-$19,500$500
    Probability0.00180.00190.00190.00190.00190.9906

    The expected value of the earnings is the sum of the payouts times their probabilities as follows:

      E(Earnings) = (-$19,900)(0.0018) + (-$19,800)(0.0019) + (-$19,700)(0.0019) + (-$19,600)(0.0019) + (-$19,500)(0.0019) + ($500)(0.9906)

      E(Earnings) = -$35.82 - $37.62 - $37.43 - $37.24 - $37.05 + $495.30 = $310.14

    Therefore, the expected value of the earnings is about $310.14.

  9. Simulate the offspring (one generation only) of 100 female Asian stochastic beetles. What is your estimate of the expected number of offspring of one such beetle, based on this simulation? Compare the simulated value with the exact expected value you found in Exercise 7.36(a). Explain how your results illustrate the law of large numbers.

    We will use the following coding for our simulation:

    Random
    Number
    Simulated
    Result
    0, 1No Female Offspring (20%)
    2, 3, 4One Female Offspring (30%)
    5, 6, 7, 8, 9Two Female Offspring (50%)

    Using Table A (textbook page 430) and starting with line 101, we get the following values (random numbers above, simulated result below):

      19223 95034 05756 28713 96409 12531 42544 82853
      02111 22011 02222 12201 22102 01210 11211 21221

      73676 47150 99400 01927 27754 42648 82425 36290
      21222 12020 22100 00212 12221 11212 21112 12120

      45467 71709 77558 00095
      12122 20202 22222 00022

    Therefore, we simulated a total of 130 female offspring from 100 female beetles. Our simulated expected number of offspring is 130/100 = 1.30. This is the same as the actual value of 1.3 that we calculated in Exercise 7.36(a). This supports the Law of Large Numbers by showing that with a large sample size, the estimated expected value approaches the "true" expected value.

  10. Write a brief essay giving arguments for and against state-run lotteries as a means of financing state government. Conclude the essay by explaining why you support or oppose such lotteries.

    Answers will vary according to each student's personal beliefs.

  11. A famous example in probability theory shows that the probability that at least two people in a room have the same birthday is already greater than 1/2 when 23 people are in the room. The probability model for this situation is:

    1. The birth date of a randomly chosen person is equally likely to be any of the 365 dates of the year.
    2. The birth dates of different people in the room are independent.

    Explain carefully how you would simulate the birth dates of 23 people to see if any two have the same birthday. Do the simulation once, using line 139 of Table A. (Comment: This simulation is most easily done by letting three-digit groups stand for the birthdates of successive people, so that 001 is January 1 and 365 is December 31. Ignore leap years. Some groups must be skipped in doing this. The simulation is too lengthy to ask you to repeat it many times, but in principle you can find the probability of matching birthdays by routine repetition. The birthday problem is too hard for most of your math-major friends to solve, so it shows the power of simulation.)

    The birthday of a single person is simulated by a three-digit group of random digits. Groups 001 to 365 stand for the days of the year (ignoring those born on February 29), and others are ignored. By part (b) above, 23 consecutive three-digit groups (skipping those not between 001 and 365, inclusive) simulate the birth dates of 23 persons. Beginning in line 139, these are:

      555|88 9|940|4 70|708 | 410|98 4|356|3 56|934 | 483|94 5|171|9
      12|975 | 132|58 1|304|8 45|144 | 723|21 8|194|0 00|360 | 024|28
      9
      |676|7 35|964 | 238|22 9|601|2 94|591 | 651|94 5|084|2 53|372 |
      728|29 5|023|2 97|892 | 634|08 7|791|9 44|575 | 248|70 0|417|8
      88|565 | 426|28 1|779|7 49|376 | 617|62 1|695|3 88|604 | 127|24

    Note that the first two simulated people have the same birthdates! (No, I didn't cheat by trying several lines. The birthday problem is discussed in many tests on probability. With 23 persons, the probability of at least one match is 0.507.) In order to estimate the probability of at least two persons having the same birthday (in the same room of 23 persons), you would need to repeat the above simulation many times (perhaps 100 total times) and use the proportion of those samples that contained duplicate birthdays as your estimate of the probability of having at least two persons with the same birthday.


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Last modified on December 5, 1996.