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# Refer to Exercise 23. Assume that the probabilities that ISBN: 9780073401331 38

## Solution for problem 24SE Chapter 2

Statistics for Engineers and Scientists | 4th Edition

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Problem 24SE

Refer to Exercise 23. Assume that the probabilities that each of the three scenarios occurs are P(A) = 0.20, P(B) = 0.30, and P(C) = 0.50.

a. Find the probability that scenario A occurs and that the loss is 5%.

b. Find the probability that the loss is 5%.

c. Find the probability that scenario A occurs given that the loss is 5%.

Step-by-Step Solution:

Step 1 of 4:

Assume that the probabilities that each of the three scenarios occurs are P(A) = 0.20, P(B) = 0.30, P(C) = 0.50.

Step 2 of 4:

a).  In exercise 23, the table is

 Probability Loss (%) Scenarios A Scenarios B Scenarios C 0 0.65 0.65 0.65 2 0 0 0.24 5 0.2 0.24 0.1 10 0 0 0.01 15 0.1 0.1 0 20 0 0.01 0 25 0.05 0 0

To find the probability that scenario A occurs and that the loss is 5%.

Here, using the formula for conditional probability.  Now,

Let ‘L’ denote the loss. = = (0.20)(0.2)

= 0.04

(In the table, 5% loss for scenario A is 0.2. So = 0.2 )

Therefore, the probability that scenario A occurs and that the loss is 5% is 0.04.

Step 3 of 4

Step 4 of 4

##### ISBN: 9780073401331

The answer to “Refer to Exercise 23. Assume that the probabilities that each of the three scenarios occurs are P(A) = 0.20, P(B) = 0.30, and P(C) = 0.50.a. Find the probability that scenario A occurs and that the loss is 5%.________________b. Find the probability that the loss is 5%.________________c. Find the probability that scenario A occurs given that the loss is 5%.” is broken down into a number of easy to follow steps, and 60 words. Since the solution to 24SE from 2 chapter was answered, more than 232 students have viewed the full step-by-step answer. This full solution covers the following key subjects: occurs, loss, Probability, Find, scenario. This expansive textbook survival guide covers 153 chapters, and 2440 solutions. The full step-by-step solution to problem: 24SE from chapter: 2 was answered by , our top Statistics solution expert on 06/28/17, 11:15AM. Statistics for Engineers and Scientists was written by and is associated to the ISBN: 9780073401331. This textbook survival guide was created for the textbook: Statistics for Engineers and Scientists , edition: 4.

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Refer to Exercise 23. Assume that the probabilities that

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