ECO 104.7 - Assignment II
ECO 104.7 - Assignment II
ECO 104.7 - Assignment II
Department of Economics
ECO 104 (Section – 7), Spring’ 2021
Assignment II
(Due date: 15 April, 2021)
4. High school seniors with strong academic records apply to the nation’s most selective
colleges in greater numbers each year. Because the number of slots remains relatively stable,
some colleges reject more early applicants. Suppose that for a recent admissions class, an Ivy
League college received 2851 applications for early admission. Of this group, it admitted
1033 students early, rejected 854 outright, and deferred 964 to the regular admission pool
for further consideration. In the past, this school has admitted 18% of the deferred early
admission applicants during the regular admission process. Counting the students admitted
early and the students admitted during the regular admission process, the total class size
was 2375. Let E, R, and D represent the events that a student who applies for early admission
is admitted early, rejected outright, or deferred to the regular admissions pool.
a. Use the data to estimate P(E), P(R), and P(D).
b. Are events E and D mutually exclusive? Find P(E ∩ D).
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c. For the 2375 students who were admitted, what is the probability that a randomly
selected student was accepted during early admission?
d. Suppose a student applies for early admission. What is the probability that the
student will be admitted for early admission or be deferred and later admitted
during the regular admission process?
(8 marks)
5. Students taking the Graduate Management Admissions Test (GMAT) were asked about
their undergraduate major and intent to pursue their MBA as a full-time or part-time
student. A summary of their responses follows.
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