Q1. Consider a standard deck of cards that has 26 red cards and 26 black cards. Find the probability of selecting a black card?
Q2. A recent survey of banks revealed the following distribution for the interest rate being charged on a home loan (based on a 30-year mortgage with a 10% down payment).
|
Interest Rate
|
7.0%
|
7.5%
|
8.0%
|
8.5%
|
> 8.5%
|
|
Probability
|
0.12
|
0.23
|
0.24
|
0.35
|
0.06
|
If a bank is selected at random from this distribution, what is the chance that the interest rate charged on a home loan will exceed 8.0%?
Q3. The employees of a company were surveyed on questions regarding their educational background and marital status. Of the 600 employees, 400 had college degrees, 100 were single, and 60 were single college graduates. The probability that an employee of the company does not have a college degree is:
Q4. The probability that house sales will increase in the next 6 months is estimated to be 0.25. The probability that the interest rates on housing loans will go up in the same period is estimated to be 0.74. The probability that house sales or interest rates will go up during the next 6 months is estimated to be 0.89. Calculate the probability that neither house sales nor interest rates will increase during the next 6 months.
Q5. The probability that a new advertising campaign will increase sales is assessed as being 0.80. The probability that the cost of developing the new ad campaign can be kept within the original budget allocation is 0.40. Assuming that the two events are independent, calculate the probability that the cost is kept within budget and the campaign will increase sales.
Q6. A company tenders for two contracts A and B. The probability that it will obtain contract A is 0.2 and contract B is 0.3. What is the probability that it will obtain either contract A or contract B?