April 1999
QT211: QUANTITATIVE ANALYSIS FOR MANAGEMENT

QUESTION 3

Total Marks: 20 Marks

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SAMPLE STUDENT'S SOLUTIONS
for Question 3

 

(a) Explain what it means when we say that
(i) Events A and B are dependent. [1]
(ii) Events A and B are independent.

 

[1]
(b) Let P(A), P(B), and P(Ainvertedu.GIF (60 bytes)B) be the probabilities of events A, B, and Ainvertedu.GIF (60 bytes)B happening. Give mathematical relationships relating each of these three probabilities (to each other) for each of the following cases: 
(i) Events A and B are dependent, [1]
(ii) Events A and B are independent, and [1]
(iii) Events A and B are mutually exclusive.

 

[1]
(c) During winter in Scotland, Mr Nettawa experiences difficulty in starting his two cars. The probability that the first car starts is 0.6, and the probability that the second car starts is 0.4. There is the probability of 0.32 that both cars start.
(i) Are these events (i.e. that each of the cars starts) independent? Explain your answer. [2]
(ii) What is the probability that the first car starts but the second car doesn't? [1]
(iii) What is the probability that the second car starts but the first car doesn't? [1]
(iv) What is the probability that at least car starts? [1]
(v) What is the probability that neither car starts?

 

[1]
(d) A computer manufacturer has undertaken a survey of 100 businesses to determine which of the three types of external memory devices they commonly use: CD, DVD or diskette. A total of 39 businesses uses DVD, whilst 73 businesses made use of CD, 12  businesses used CD only, whilst 17 used only DVD, 42 businesses used both CD and diskette, but not DVD. Only 4 businesses used all three devices; all of the businesses used at least one of the devices.
(i) Draw a Venn diagram to represent the results of the survey. [5]
(ii) How many businesses used CD and DVD, but not diskettes? [1]
(iii) How many businesses used DVD and diskettes, but not CD? [1]
(iv) What is the probability that a firm that uses diskettes does not use CDs? [2]