The solution to Probability problems
1. Shown are the percent frequency distributions of job satisfaction scores for a sample of investment banking executive managers (IB) and investment banking financial advisers. The scores range from a low of I (very dissatisfied) to a high of 5 (very satisfied).
a. Develop a probability distribution for the job satisfaction score of an executive manager.
b. Develop a probability distribution for the job satisfaction score of a financial adviser.
c. what is the probability an executive manager will report a job satisfaction score of 4 or 5?
d. What is the probability a financial adviser is very satisfied?
e. Compare the overall job satisfaction of executive managers and financial advisors.
job satisfaction ib executives (%) ib financial advisors (%)
1 5 4
2 9 10
3 3 12
4 42 46
5 41 28
total 100 100
2. demand for a product manufactured by apex consolidated varies from month to month. based on 2 years of data, the following probability distribution shows the companys monthly demand.
demand probability
300 .20
400 .30
500 .35
600 .15
a. if apex places monthly orders equal to the expected value of the monthly demand ,what should apex's monthly order quantity be for this product?
b. assume that each unit demanded generates $70 of revenue and that each unit ordered costs $50.00 how much will the company gain or lose in a month if it places an order based on your answer to part (a) and the actual demand for the item is 300 units?
c. what are the variance and standard deviation for the number of units demanded?