Purchase Assignment-Quantitative Methods for Decision Making

Purchase Assignment-Quantitative Methods for Decision Making

Department of Management and Marketing

Quantitative Methods for Decision Making

Project 1

Word report (the hand writing reports will not be accepted) that includes the following three parts:

Question 1:

An investment company has classified its clients according to their gender and the composition of their investment portfolio (bonds, stocks, or a diversified mix of bonds and stocks). The proportions of clients falling into the various categories are shown in the following table:

 Gender Portfolio composition B (Bonds) S (Stocks) D (Diversified) M (Male) 0.18 0.20 0.25 F (Female) 0.12 0.10 0.15

1. What is the probability that a randomly selected client is male and has a diversified portfolio?
2. Find the probability that a randomly selected client is male, given that the client has a diversified portfolio?
3. Find the probability that a randomly selected client is Female, given that the client has a portfolio is composed of Bonds?
4. Let us define the following two events:

E1: the investor is a male

E2: the portfolio is composed of Stocks.

Can we conclude that the events E1 and E2 are independent?

Question 2:

In a hotel chain, the average number of rooms rented daily during each month is 50 rooms. The population of rooms rented daily is assumed to be normally distributed with a standard deviation of 4 rooms. For a specific month of the year, what is the probability that the number of rented rooms, in that month, is between 45 and 60 rooms?

Question 3:

The University registrar office has got some data regarding a sample of 200 students among those enrolled in the MBA Program. The registrar notes that 50 students of the sample are holders of a bachelor degree in business administration. What is the probability that among this sample 20 students hold a bachelor in business administration?

Purchase Assignment-Quantitative Methods for Decision Making

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