Unit 3: Continuous Probability Distributions- Uniform, Normal and Exponential Probability

Distributions MBA-I Fall

Uniform Distribution:

1. Values are uniformly distributed between 190 and 250

a. What is the value of f(x) for this distribution?
b. Determine the mean and standard deviation of this distribution.
c. Probability of (x > 230) =?
d. Probability of (205 ≤ x ≤ 220)?
e. Probability of (x ≤ 225)?

2. Suppose the amount of time it takes to assemble a plastic module ranges from 27 to 39
seconds and that assembly times are uniformly distributed.
a. What is the mean and standard deviation?
b. What is the probability that a given assembly will take between 30 and 35
seconds?
c. Fewer than 30 seconds?

3. The retail price of a medium sized box of a well know brand of cornflakes ranges from
$2.75 to $3.20. Assume these prices are uniformly distributed.
a. What are the average prices and standard deviation of prices in this distribution?
b. If a price is randomly selected from this list, what is probability that it will be
between $2.90 and $3.05?

Normal distribution:

4. 1. Given a standardized normal distribution (with a mean of 0 and a standard deviation of

1) what is the probability that
a. Z is less than 1.5?
b. Z is greater than 1.84?
c. Z is between 1.57 and 1.84?
d. Z is less than 1.57 or greater than 1.84?
e. Z is between -1.57 and 1.84?
f. Z is less than -1.57 or greater than 1.84?
g. 50 percent values of z are smaller than what value of z?
h. 60 percent values of z are greater than what value of z?
i. 50 percent values of z are greater than what value of z?

5. Given a normal distribution with µ = 100 and  = 10, what is the probability that
a. X ≥ 75
b. X < 70
c. 75 ≤ X < 85
d. X < 80 or X ≥ 110.
e. 10% values of the variable x are less than what value of x?
f. 80% of the values of x are between what two values of X (symmetrically
distributed around the mean)
g. 70% of the values will be above than what value of X?

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Unit 3: Continuous Probability Distributions- Uniform, Normal and Exponential Probability
Distributions MBA-I Fall
6. According to a report by Scarborough Research, the average monthly household cellular
phone bill is $73. Suppose local monthly household cell phone bills are normally
distributed with a standard deviation of $11.35
a. What is the probability that a randomly selected monthly cell phone bill is more
than $100?
b. What is the probability that a randomly selected monthly cell phone bill is
between $60 and $83?
c. What is the probability that a randomly selected monthly cell phone bill is
between $80 and $90?
d. What is the probability that a randomly selected monthly cell phone bill is no
more than $55?

7. Suppose you are working with a data set that is normally distributed, with a mean of 200
and a standard deviation of 47. Determine the value of x from the following information
a. Seventy percent of the values are greater than x
b. X is less than 20% of the values
c. Twenty-five percent of the values are less than x
d. X is greater than 65% of the values

8. Tool workers are subject to work-related injuries. One disorder, caused by strains to the
hands and wrists, is called carpal tunnel syndrome. It strikes as many as 23,000 workers
per year. The U.S. Labor department estimates that the average cost of this disorder to
employers and insurers is approximately $30,000 per injured worker. Suppose these costs
are normally distributed, with a standard deviation of $9,000
a. What proportions of the costs are between $15,000 and $ 45,000?
b. What proportions of the costs are greater than $50,000?
c. What proportions of the costs are between $5,000 and $ 20,000?
d. Suppose the standard deviation is unknown, but 90.82% of the costs are more
than $7,000. What would be the value of the standard deviation?
e. Suppose the mean value is unknown, but the standard deviation is still $9,000.
How much would the average cost be if 79.95% of the costs were less than
$33,000?

Normal Approximation to Binomial Distribution

9. Where appropriate, work the following binomial distribution problems by using the
normal distribution.
a. P(x ≥ 15/ n = 20 and p = 0.60) =?
b. P(x = 10/ n = 25 and p = 0.40) =?
c. P(x = 8/ n = 15 and p = 0.50) =?
d. P(x <4/ n = 10 and p = 0.70) =?

10. One study managers' satisfaction with management tools reveals that 59% of all
managers use self-directed work teams as a management tool. Suppose 65 managers
selected randomly in the United State are interviewed. What is the probability that fewer
than 30 use self-directed work teams as a management tool?

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Unit 3: Continuous Probability Distributions- Uniform, Normal and Exponential Probability
Distributions MBA-I Fall

11. According to the Yankee Group, 53% of all cable households rate cable companies as
good or excellent in quality transmission. Sixty percent of all cable household rate cable
companies as good or excellent in having professional personnel. Suppose 300 cable
households are randomly contacted.
a. What is the probability that more than 175 cable households rate cable companies
as good or excellent in quality transmission?
b. What is the probability that between 165 and 170 (inclusive) cable households
rate cable companies as good or excellent in quality transmission?
c. What is the probability that between 155 and 170 (inclusive) cable households
rate cable companies as good or excellent in having professional personnel?
d. What is the probability that fewer than 200 cable households rate cable companies
as good or excellent in having professional personnel?

Exponential distribution:

12. Determine the mean, standard deviation and exponential probabilities of the following
problems
a. P( x ≥ 4/ λ = 1.4)
b. P( x < 5/ λ = 0.75)
c. P( x > 3/ λ = 1.9)
d. P( x < 8/ λ = 0.5)

13. A busy restaurant determined that between 6:30 P.M. and 9:00 P.M. on Friday nights, the
arrivals of customers are Poisson distributed with an average arrival rate of 3 per minute.
a. What is the probability that at least 8 minutes will elapse between arrivals?
b. What is the probability that at least 5 minutes will elapse between arrivals?
c. What is the probability that at least 2 minutes will elapse between arrivals?
d. What is the expected amount of time between arrivals?

14. The average length of time between arrivals at a turnpike tollbooth is 23 seconds.
Assume that the time between arrivals at the tollbooth is exponentially distributed.
a. What is the probability that a minute or more will elapse between arrivals?
b. If a car has just passed through the tollbooth, what is the probability that no car
will show up for at least 3 minutes?

15. An entrepreneur opened a small hardware store in a strip mall. During the first few
weeks, business was slow, with the store averaging only one customer every 20 minutes
in the morning. Assume that the random arrival of customers is Poisson distributed.
a. What is the probability that at least one hour would elapse between customers?
b. What is the probability that 10 to 30 minutes would elapse between arrivals?
c. What is the probability that less than five minutes would elapse between arrivals?