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NHTSA crash safety tests. Refer to Exercise 4.21 (p. 224)and the NHTSA crash test data for new cars. One of the variablessaved in the accompanying file is the severity ofa driver’s head injury when the car is in a head-on collision with a fixed barrier while traveling at 35 miles per hour. The more points assigned to the head-injury rating,the more severe the injury. The head-injury ratings can be shownto be approximately normally distributed with a meanof 605 points and a standard deviation of 185 points.One of the crash-tested cars is randomly selected from the data, and the driver’s head-injury rating is observed.

a. Find the probability that the rating will fall between 500 and700 points.

b. Find the probability that the rating will fall between 400and 500 points.

c. Find the probability that the rating will be less than 850points.

d. Find the probability that the rating will exceed 1,000points.

Short Answer

Expert verified

a. The probability that the rating will fall between 500and 700 points is 0.4110

b. The probability that the rating will fall between 400and 500 points is 0.1513

c. The probability that the rating will be less than 850 points is.0.9073

d. The probability that the rating will exceed 1,000 points is 0.0164

Step by step solution

01

Given information

Let X denotes the head injury rating.

X follows a normal distribution with the parameter μand σ2

z=X-μσfollows normal distribution with mean 0 and a variance 1

Also, givenmean=605SD=185

02

Calculating the probability that the rating will fall between 500 and 700 points

a.

We have to calculate the probability that the rating will fall between 500 and 70 points.

That is,P500<X<700

role="math" localid="1660714332516" P500<X<700=P(700)-PX-500=PZ<X-μσ=PZ<700-605185-PZ700-605185P500<X<700PZ<0.513-PZ-0.567P500<X<7000.6962-0.2852=0.411

Hence, the probability that rating will fall between 500 and 70 points. That is,P500<X<700 is 0.411.

03

Calculating the probability that the rating will fall between 400 and 500 points

b.

For calculating the probability that rating will fall between 400 and 500,that isP400<X<500 .

P400<X<500=P(500)-PX-400=PZ<X-μσ=PZ<500-605185-PZ400-605185P400<X<500PZ<0.567-PZ-1.1080.2852-0,1339=0.1513

Hence, the probability that rating will fall between 400 and 500,that isP400<X<500 .is 0.1513.

04

Calculating the probability that the rating will beless than 850 points.

c.

We have to calculate the probability that the rating will be less than 850, that is,,

PX<850

Hence,

PX<850=PZ<X-μσPz<850-605185Pz<1.3243PX<8500.9073

Hence, the probability that the rating will be less than 850, that isPX<850 is 0.9073.

05

Calculating the probability that therating will exceed 1000 points.

d.

We will find the probability that rating will exceed 1000 points that isPX>1000

PX>1000=1-PX>1000=1-PZ<X-μσ=1-PZ<1000-605185PX>10001-PZ>2.13511-0.98360.0164

Hence, the probability that rating will exceed 1000 points that isPX>1000 is 0.0164 .

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Most popular questions from this chapter

Investment risk analysis. The risk of a portfolio of financial assets is sometimes called investment risk. In general, investment risk is typically measured by computing the variance or standard deviation of the probability distribution that describes the decision maker’s potential outcomes (gains or losses). The greater the variation in potential outcomes, the greater the uncertainty faced by the decision maker; the smaller the variation in potential outcomes, the more predictable the decision maker’s gains or losses. The two discrete probability distributions given in the next table were developed from historical data. They describe the potential total physical damage losses next year to the fleets of delivery trucks of two different firms.

Firm A




Firm B



Loss Next Year

Probabiity


Loss Next Year

Probability

0

0.01



0

0


500

0.01



200

0.01


1000

0.01



700

0.02


1500

0.02



1200

0.02


2000

0.35



1700

0.15


2500

0.3



2200

0.3


3000

0.25



2700

0.3


3500

0.02



3200

0.15


4000

0.01



3700

0.02


4500

0.01



4200

0.02


5000

0.01



4700

0.01


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