1) Hertz Brothers, a small, family-owned radio manufacturer, produces electronic components domestically but subcontracts the cabinets to a foreign supplier. Although inexpensive, the foreign supplier has a quality control program that leaves much to be desired. On the average, only 80% of the standard 1600-unit shipment that Hertz receives is usable. Currently, Hertz has back orders for 1260 radios but storage space for no more than 1310 cabinets. What are the chances that the number of usable units in Hertz's latest shipment will be large enough to allow Hertz to fill all the orders already on hand, yet small enough to avoid causing any inventory problems?
2) There is a theory embraced by certain parapsychologists that hypnosis can enhance a person's ESP ability. To test that hypothesis, an experiment was set up with 15 hypnotized subjects. A total of 326 correct identifications were made. Can it be argued on the basis of those results that hypnosis does have an effect on a person's ESP ability? Explain.
3) Suppose that 100 fair dice are tossed. Estimate the probability that the sum of the faces showing exceeds 370. Include a continuity correction in your analysis.
4) Considerable controversy has arisen over the possible aftereffects of a nuclear weapons test conducted in Nevada in 1957. Included as part of the test were some 3000 military and civilian "observers." Now, more than 40 years later, eight cases of leukemia have been diagnosed among those 3000. The expected number of cases, based on the demographic characteristics of the observers, was three. Assess the statistical significance of those findings. Calculate both an exact answer using the Poisson distribution as well as an approximation based on the central limit theorem.