John Thurgood founded a company that translates Chinese books into English. His company is currently testing a computer-based translation service.
Since Chinese symbols are difficult to translate, John assumes the computer program will make some errors, but then so do human translators. The computer error rate is supposed to be an average of 3 per 400 words of translation. Suppose John randomly selects a 1,200-word passage. Assuming that the Poisson distribution applies, if the computer error rate is actually 3 errors per 400 words, determine the probability that no errors will be found.A) 0.0001
B) 0.0141
C) 0.0415
D) 0.4557
Q. 2College-Pro Painting does home interior and exterior painting. The company uses inexperienced painters that do not always do a high-quality job. It believes that its painting process can be described by a Poisson distribution with an average of 4.
8 defects per 400 square feet of painting.What is the probability that a 400-square-foot painted section will have fewer than 6 blemishes?A) 0.2818
B) 0.3414
C) 0.4857
D) 0.6510
Q. 3A stock portfolio contains 20 stocks. Of these stocks, 10 are considered large-cap stocks, 5 are mid-cap, and 5 are small cap. The portfolio manager has been asked by his client to develop a report that highlights 7 ran
When she presents her report to the client, all 7 of the stocks are large-cap stocks. The client is very suspicious that the manager has not randomly selected the stocks. She believes that the chances of all 7 of the stocks being large cap must be very low. Compute the probability of all 7 being large cap.A) 0.0015
B) 0.0008
C) 0.0121
D) 0.0309
Q. 4The Weyerhauser Lumber Company headquartered in Tacoma, Washington, is one of the largest timber and wood product companies in the world. Weyerhauser manufactures plywood at one of its Oregon plants.
Plywood contains minor imperfections that can be repaired with small plugs. One customer will accept plywood with a maximum of 3.5 plugs per sheet on average. Suppose a shipment was sent to this customer and when the customer inspected two sheets at random, 10 plugged defects were counted. What is the probability of observing 10 or more plugged defects if in fact the 3.5 average per sheet is being satisfied?A) 0.1887
B) 0.1695
C) 0.2115
D) 0.2675
Q. 5A new phone answering system installed by the Ohio Power Company is capable of handling five calls every 10 minutes.
Prior to installing the new system, company analysts determined that the incoming calls to the system are Poisson distributed with a mean equal to two every 10 minutes. If this incoming call distribution is what the analysts think it is, what is the probability that in a 10-minute period more calls will arrive than the system can handle?A) 0.174
B) 0.0812
C) 0.0166
D) 0.0233
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