Discrete Distribution

Q.1. A market researcher at a major automobile company classified households

by car ownership. The relative frequency of households for each category of
ownership are shown below:

No. of cars per

Household Relative Freq
0 0.10
1 0.30
2 0.40
3 0.12
4 0.06
5 0.02
Q.2. Prob: 5.2 Page No: 146
Q.3. Prob: 5.3 Page No: 146
Q.4. Prob: 5.4 Page No: 147
# Binomial Distribution:

Q.5. The latest nationwide political poll indicate that for Americans who are
randomly selected, the probability that they are conservative is 0.55, the
probability they are liberal is 0.30 and the probability that they are middle-of-the-
road is 0.15. Answer the following questions pertaining to a randomly chosen
group of 10 American:

Prepared By: Mr. Ajit R. Arya

Faculty, Management Studies

C. U. Shah Engineering & Technology, Surendranagar, Gujarat
(a) What is the prob. that four are liberal?

(b) What is the prob. that none are conservative?

(c) What is the prob. that two are middle-of-the-road?

(d) What is the prob. that at least eight are liberal?

Q.6. A brokerage survey reports that 30% of individual investors have used a
discount broker, i.e. one which does not charge the full commission. In a random
sample of 9 individuals, what is the probability that,

(a) Exactly two of the sampled individuals have used a discount broker?

(b) Not more than three have used a discount broker.

(c) At least three of them have used a discount broker.

Q.7. Mr. Gupta applies for a personal loan of Rs. 1,50,000 from a nationalized
bank to repair his house. The loan offer informed him that over the years, bank has
received about 2920 loan applications per year and that the probability of approval
was, on average, above 0.85:

(a) Mr. Gupta wants to know the average and standard deviation of the number
of loans approved per year.

(b) Suppose bank actually received 2654 loan applications per year with and
approval probability of 0.82. What are the mean and standard deviation now?

Q.8. The incidence of occupational Disease in an industry is such that the

workers have 20% chance of suffering from it. What is the probability that out of 6
workers four or more will come in contact of the disease?

Prepared By: Mr. Ajit R. Arya

Faculty, Management Studies

C. U. Shah Engineering & Technology, Surendranagar, Gujarat
Q.9. Prob: 5.5 Page No: 156
Q.10. Prob: 5.6 Page No: 156
Q.11. Prob: 5.7 Page No: 156
Q.12. Prob: 5.8 Page No: 157
Q.13. Prob: 5.10 Page No: 157
Q.14. Prob: 5.12 Page No: 157
Q.15. Prob: 5.13 Page No: 157
Q.16. Prob: 5.14 Page No: 158
# Poisson Distribution:

Q.17. A new automated production process has had an average of 1.5 breakdowns
per day. Because of the cost associated with a breakdown, management is
concerned about the possibility of having three or more breakdowns during a day.
Assume that breakdowns occur randomly, that the probability of a breakdown is
the same for any two time intervals of equal length, and that breakdowns in one
period are independent of breakdowns in other periods. What is the probability of
having three or more breakdowns during a day?

Q.18. Prob: 5.15 Page No: 165

Q.19. Prob: 5.16 Page No: 165
Q.20. Prob: 5.17 Page No: 166
Q.21. Prob: 5.18 Page No: 166
Q.22. Prob: 5.20 Page No: 167
Q.23. Prob: 5.22 Page No: 167

Prepared By: Mr. Ajit R. Arya

Faculty, Management Studies

C. U. Shah Engineering & Technology, Surendranagar, Gujarat
Q.24. Prob: 5.24 Page No: 167
Q.25. Prob: 5.25 Page No: 168
Q.26. Prob: 5.26 Page No: 168

# Hyper geometric Distribution:

Q.27. Suppose the HRD manager randomly selects three individuals from a group
of 10 employees for a special assignment, assuming that 4 of the employees were
assigned to a similar assignment previously, determine the probability that exactly
two of the three employees have had previous experience?

Q.28. Suppose a particular industrial product is shipped in lots of 20. To determine

whether an item is defective a sample of 5 items from each lot is drawn. A lot is
rejected if more than one defective item is observed. (If the lot is rejected, each
item in the lot is than tested). If a lot contains four defectives, what is the
probability that it will be accepted?

Q.29. Prob: 5.27 Page No: 170

Q.30. Prob: 5.32 Page No: 171

Q.31. Prob: 5.33 Page No: 171

# Supplementary Problems:

Q.32. Prob: 5.41 Page No: 175

Q.33. Prob: 5.43 Page No: 175

Q.34. Prob: 5.45 Page No: 175

Q.35. Prob: 5.51 Page No: 176

Prepared By: Mr. Ajit R. Arya

Faculty, Management Studies

C. U. Shah Engineering & Technology, Surendranagar, Gujarat
Q.36. Prob: 5.53 Page No: 177

Q.37. Prob: 5.55 Page No: 177

Q.38. Prob: 5.59 Page No: 178

# Formulas:

1. Mean (Expected) value of a Discrete Distribution

2. Variance of a Discrete Distribution

3. Standard Deviation of a Discrete

4. Binomial Distribution

5. Mean of Binomial

6. Standard Deviation of Binomial

7. Poisson Distribution

8. Mean of Poisson Distribution

9. Standard Deviation of Poisson Distribution

10. Hyper geometric Distribution

Prepared By: Mr. Ajit R. Arya

Faculty, Management Studies

C. U. Shah Engineering & Technology, Surendranagar, Gujarat