1.) An entrepreneur in a developing country owns 10 food carts. He has ten employees to work with these food carts. Let Xi be a random variable representing revenue from cart i (on a particular day), i = 1,..., 10. Xi is approximately normally distributed with mean $35, and variance 64 (squared dollars). Revenues of the different carts are independent.
What is the probability that average revenue will be less than $30 on a particular day?
In this exercise the cumulative distribution function of the standard normal random variable is denoted by F(.).
a) 1-F(0.625)
b) F(0.625)
c) 1-F(1.97)
d) F(1.97)
2.) An entrepreneur in a developing country owns 10 food carts. He has ten employees to work with these food carts. Let Xi be a random variable representing revenue from cart i (on a particular day), i = 1,..., 10. Xi is approximately normally distributed with mean $35, and variance 64 (squared dollars). Revenues of the different carts are independent.
What is the probability that average revenue will be less than $30 on a particular day?
In this exercise the cumulative distribution function of the standard normal random variable is denoted by F(.).
a) 1-F(1.97)
b) F(0.625)
c) 1-F(0.625)
d) F(1.97)
3.) An entrepreneur in a developing country owns 10 food carts. He has ten employees to work with these food carts. Let Xi be a random variable representing revenue from cart i (on a particular day), i = 1,..., 10. Xi is approximately normally distributed with mean $35, and variance 64 (squared dollars). Revenues of the different carts are independent.
How many carts would the entrepreneur have to own in order for the probability to be at least 0.90 that average revenue on a particular day will be between $33 and $37?
The cumulative distribution function of a normal random variable is denoted by F(.) in this exercise.
a) 64
b) 44
c) 49
d) 7