1. Section 06

4. The Bernoulli distribution is a special case where n=1!

6. The geometric distribution is a special case where r =1!

9.  DEFINITELY know  Uniform  Binomial  Poisson  Geometric  TRY TO know  Negative Binomial  Hypergeometric  Maybe not  Multinomial

10. A tour operator has a bus that can accommodate 20 tourists. The operator knows that tourists may not show up, so he sells 21 tickets. The probability that an individual tourist will not show up is.02, independent of all other tourists. Each ticket costs 50, and is non-refundable if a tourist fails to show up. If a tourist shows up and a seat is not available, the tour operator has to pay 100 (ticket cost + 50 penalty) to the tourist. What is the expected revenue of the tour operator?

11. An actuary has discovered that policyholders are three times as likely to file two claims as to file four claims. If the number of claims filed has a Poisson distribution, what is the variance of the number of claims filed?

12. A baseball team has scheduled its opening game for April 1. If it rains on April 1, the game is postponed and will be played on the next day that it does not rain. The team purchases insurance against rain. The policy will pay 1000 for each day, up to 2 days, that the opening game is postponed. The insurance company determines that the number of consecutive days of rain beginning on April 1 is a Poisson random variable with mean.6 What is the standard deviation of the amount the insurance company will have to pay?