Suppose that a manager of a large apartment complex provides the follo

urca3m403

urca3m403

Answered question

2021-11-13

Suppose that a manager of a large apartment complex provides the following subjective probability estimates about the number that exists per month.
VacanciesProbability0.051.152.353.254.105.10
Provide the probability of each of the following events.
a. No vacancies
b. At least four vacancies
c. Two or fewer vacancies

Answer & Explanation

Wasither1957

Wasither1957

Beginner2021-11-14Added 17 answers

Step 1
Given:
VacanciesProbability0.051.152.353.254.105.10
a) The probability of no vacancies can be calculated by observing the given data.
Hence, the probability of no vacancies is 0.05.
Step 2
b) The probability of at least 4 vacancies can be calculated as,
P(X4)=P(4)+P(5)
=0.10+0.10
=0.20
Hence, the probability of at least 4 vacancies is 0.20.
c) The probability of 2 or fewer vacancies can be calculated as,
P(X2)=P(0)+P(1)+P(2)
=0.05+0.15+0.35
=0.55
Hence, the probability of 2 or fewer vacancies is 0.55.

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