MA 450 | Activity – Unit 4 (Combining Random Variables)

MA 450 | AP Statistics

Combining Random Variables

1. Calculate the mean and standard deviation of the sum or difference of random variables.

2. Find probabilities involving the sum or difference of independent Normal random variables.

Matt...our GOALS 🙄​

After much thought, Mr. Turner has finally decided on permanent employee wages – no more daily wage nonsense. The permanent employee wages are randomly assigned using the probability distribution X, which is given in a table. Additionally, at the end of every year, Mr. Turner will give his employees an hourly wage. The bonuses are assigned randomly according to the probability distribution Y, which is given in a table. Assume X and Y are independent.

PROMPT

Equations we need:

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Probability Distribution X

Probability Distribution Y

Open Ended

Let N = new hourly wage for the next calendar year = X + Y.

List all the possible new hourly wages the new year.

X-wages: 9, 12, 15

Y-raise wages: 1, 3

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We can find the probability distribution of N.

Take-Aways