Back to 9.2 Problems on Independent Classes of Random Variables

9.2 Exercise 24

Avg difficulty 2.5

Glenn makes five sales calls, with probabilities 0.370.37, 0.520.52, 0.480.48, 0.710.71, 0.630.63, of success on the respective calls. Margaret makes four sales calls with probabilities 0.770.77, 0.820.82, 0.750.75, 0.910.91, of success on the respective calls. Assume that all nine events form an independent class. If Glenn realizes a profit of $18.00 on each sale and Margaret earns $20.00 on each sale, what is the probability Margaret's gain is at least $10.00 more than Glenn's?

Pfeiffer, Applied Probability, 9.2 Problems on Independent Classes of Random Variables, exercise 24

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Adapted from Applied Probability © 2009 Paul E. Pfeiffer. Licensed under CC BY 3.0. Source: Applied Probability. Imported at revision d7a0420.