Inverse probability based on the normal distribution.
1. In a random sample of eight military contracts involving cost overruns, the following information was obtained. x = big price of the contract (in millions of dollars) and y = cost of overrun (expressed as a percent of the bid price).
x

6

10

3

5

9

18

16

21

y

31

25

39

35

29

12

17

8

If an overrun contract was bid at 12 million dollars, what does the leastsquares line find out for the cost of overrun (as a percent of bid price)?
2. Let x be a random variable that represents the length of time it takes a student to prepare a term paper for Dr. Adam's Sociology class. After interviewing many students, it was found that x has an approximately normal distribution with mean μ = 6.8 hours and standard deviation σ = 2.1 hours. 0 ≤ z ≤ 2