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True/False 1. The binomial experiment consists of n independent, identical trials, each of which results in either success or failure and is such that the probability of success on any trial is the same. Answer: True Difficulty: Medium 2. A Poisson random variable is a continuous variable that can be used to describe the number of occurrences of an event over a specified interval of time or space. Answer: False Difficulty: Medium 3. The hypergeometric distribution is appropriate when sampling with replacement from small populations Answer: False Difficulty: Medium 4. A discrete random variable may assume a countable number of outcome values. Answer: True Difficulty: Easy 5. The variable “home ownership” can take on one of two values, one if the person living in a home owns the home and zero if the person living in a home does not own the home is an example of a discrete random variable. Answer: True Difficulty: Easy 6. If the number of surface nonconformities on a specific size of a metal piece is the discrete random variable in question, then the appropriate probability distribution that can describe the probability of a specific size metal sheet containing 3 nonconformities is most likely given by the binomial distribution. Answer: False Difficulty: Medium 7. The mean of the binomial distribution is np(1-p) Answer: False Difficulty: Easy 8. In a binomial experiment, the results of one trial are dependent on the results of other trials. Answer: False Difficulty: Easy

Bowerman, Essentials of Business Statistics, 2/e 114

9. In a binomial distribution the random variable X is continuous. Answer: False Difficulty: Easy Multiple Choice 10. When using hypergeometric distribution, it is assumed that the trials are __________ and the probability of success ________ from trial to trial. A) Independent, does not change B) Dependent, does not change C) Independent, changes D) Dependent, changes Answer: D Difficulty: Medium 11. If p = .1 and n = 5, then the corresponding binomial distribution is A) Right skewed B) Left skewed C) Symmetric D) Bimodal Answer: A Difficulty: Medium 12. If p = .5 and n = 4, then the corresponding binomial distribution is A) Right skewed B) Left skewed C) Symmetric D) Bimodal Answer: C Difficulty: Medium 13. The requirement that the probability of success remains constant from trial to trial is a property of the _________________ distribution. A) Binomial B) Uniform C) Normal D) Poisson E) Hypergeometric Answer: A Difficulty: Medium (REF)

115

Bowerman, Essentials of Business Statistics, 2/e

000. If the expected number of units sold is 100. p (1 − p ) Answer: B Difficulty: Medium 17.000.500. If the number of surface nonconformities on a specific size of metal piece is the discrete random variable in question. and σX = 12.000 and 720.400. The mean of the binomial distribution is equal to: A) p B) np C) px(1-p)n-x D) (n)(p)(1-p) E) n.500.14.000 + 60x where x is the number of units sold. is described by y = -1. what is the probability that exactly 4 cars will arrive in a five minute interval? A) Binomial B) Poisson C) Both of the above D) None of the above Answer: B Difficulty: Medium (REF) 16.000. what are and σY? A) 6.000. 2/e 116 . A company's annual profit.000 and 12. then the appropriate probability distribution that can describe the probability of a specific size metal sheet containing 3 defectives is given most likely by ___________________ distribution A) Binomial B) Poisson C) Hypergeometric D) Both A and B Answer: B Difficulty: Medium (REF) 15.000 B) 6.000.000 C) 4.500.000 and 518. Essentials of Business Statistics. y. Which of the following distributions can be used to solve the following problem? The average number of cars arriving at a drive-thru fast food restaurant is 3 in ten minutes.000 D) 4.000 Answer: D Difficulty: Medium Bowerman.000 and 720.

If you purchase one ticket. Answer: B Difficulty: Medium 117 Bowerman. Essentials of Business Statistics.01 Answer: A Difficulty: Medium 21. 2/e .2 B) 1. The number of ways to arrange x successes among n trials is equal to n! A) x !(n − x)! B) C) n! (n − x)! n x n! x! D) Answer: A Difficulty: Medium 19. Answer: A Difficulty: Medium (REF) 22. C) The probability of success remains constant from trial to trial. A total of 50 raffle tickets are sold for a contest to win a car.05 D) . Which one of the following statements is not an assumption of the binomial distribution? A) Sampling is with replacement. E) Each trial results in one of two mutually exclusive outcomes. B) The experiment consists of n identical trials.18. D) Trials are independent of each other.7 D) All of the above Answer: A Difficulty: Medium 20. Which of the following is a valid probability value for a discrete random variable? A) . The binomial distribution is characterized by situations that are analogous to A) Drawing balls from and urn B) Coin tossing C) Counting defects on an item D) Measuring the length of an item. what are your odds against winning? A) 49 to 1 B) 50 to 1 C) .01 C) -.

Essentials of Business Statistics.Bowerman. 2/e 118 .

and the random variable of interest is continuous.6 per month.2674 Answer: C Difficulty: Medium 119 Bowerman. A random variable is said to be discrete if A) Its outcomes are countable B) It can assume any real number within a given interval C) The rules of probability apply D) It can be represented graphically Answer: A Difficulty: Easy 24. D) The event occurring in one interval is dependent of the event occurring in any other nonoverlapping interval.2176 Answer: B Difficulty: Medium 26. Answer: C Difficulty: Medium (REF) Use the following information to answer questions 25-27: The Securities and Exchange Commission has determined that the number of companies listed in NYSE declaring bankruptcy is approximately a Poisson distribution with a mean of 2.23.7326 D) . 2/e . Essentials of Business Statistics. Two characteristics/assumptions of the Poisson distribution include: A) Probability of success remains constant from trial to trial and the random variable of interest is continuous. and the random variable of interest is continuous. Find the probability that exactly 4 bankruptcies occur next month. A) .1414 C) .8774 B) . 25. Find the probability that more than 1 bankruptcy occur next month. B) The event occurring in one interval is independent of the event occurring in any other nonoverlapping interval.4816 E) . C) The event occurring in one interval is independent of the event occurring in any other nonoverlapping interval. A) . and the random variable of interest is discrete.9257 C) .1931 B) .1557 D) .

2/e 120 .6123 B) .4816 E) . What is the probability that an odd number (1. or 5) will occur less than 3 times? A) .7326 D) . A fair die is rolled 10 times.0547 B) . or 6) outcomes? A) 3 B) 4 C) 5 D) 6 E) 7 Answer: C Difficulty: Easy Bowerman.1172 C) .3662 E) . A fair die is rolled 10 times. 4.3223 Answer: D Difficulty: Hard 30. 4. or 6) will occur between 2 and 4 times? A) . 3.8450 Answer: A Difficulty: Hard 29.2674 Answer: E Difficulty: Medium 28.1550 D) .1931 B) .7752 E) .1709 C) . Find the probability that no more than one bankruptcy occurs next month. What is the average number of even number (2.9257 C) . What is the probability that an even number (2. A fair die is rolled 10 times.27. A) . Essentials of Business Statistics.1611 D) .

If n = 15 and p = .5.4 Answer: D Difficulty: Easy 121 Bowerman.8974 E) . or 6) outcomes? A) 18 B) 9 C) 5 D) 3 E) 1.4. Whenever p = . then the mean of the binomial distribution is A) . A) Always B) Sometimes C) Never Answer: A Difficulty: Medium 33.4 B) 4.31. B) Trials are independent of each other.4. If n = 20 and p = . C) The probability of success remains constant from trial to trial. Answer: D Difficulty: Easy 34. E) The experiment consists of n identical trials. 2/e . the binomial distribution will _________ be symmetric. D) The random variable of interest is continuous. Which of the following statements about the binomial distribution is not correct? A) Each trial results in a success or failure. then the standard deviation of the binomial distribution is A) 9 B) 6 C) 3.8 C) 8 D) 12 Answer: C Difficulty: Easy 35. Essentials of Business Statistics. What is the standard deviation of the even number (2. A fair die is rolled 36 times.732 Answer: D Difficulty: Medium 32.6 D) 1. 4.

7619 Answer: C Difficulty: Medium 38.1465 D) .8535 E) .0183 B) .0733 C) .9084 E) . 2/e 122 . The equation for the variance of the binomial distribution is given by: A) px(1 – p)n-x B) np C) np(1-p) np (1 − p ) D) Answer: C Difficulty: Easy Use the following information to answer questions 37-38: The manager of the local grocery store has determined that.7619 D) . If x is a binomial random variable. Essentials of Business Statistics. then the standard deviation of x is given by Answer: square root (npq) Difficulty: Medium Bowerman. 37.36. What is the probability that during a randomly selected half-hour period exactly 2 customers use the service desk? A) .2381 B) . on the average. The variable "employment status" which can take on one of two values: 1 for "employed" and 0 for "unemployed" is and example of a(n) _____________ random variable. What is the probability that during a randomly selected half-hour period no more than 2 customers use the service desk? A) . Assume that the number of customers using the service desk has a Poisson distribution.0916 Answer: A Difficulty: Medium Fill-in-the-Blank 39. 4 customers use the service desk every half-hour. Answer: Discrete Difficulty: Medium 40.1465 C) .

the mean value of the squared deviations of its values from their expected value is called its Answer: Variance Difficulty: Hard Essay Use the following information to answer questions 47-50: The J.1)1 (.243 1!(3 −1)! Difficulty: Medium 123 Bowerman. The hypergeometric distribution is used when sampling _____ replacement from small populations Answer: Without Difficulty: Medium 45. The distribution whose mean is equal to its variance is the _________ distribution.9) 2 = . Answer: Binomial Difficulty: Medium 42.243 3! (. Answer: Binomial Difficulty: Medium 44. Supplies Company buys calculators from a Korean supplier. Essentials of Business Statistics. The requirement that the probability of success remains constant from trial to trial is a property of the _______________ distribution. If 3 calculators are selected at random. what is the probability that one of the calculators will be defective? Answer: . For a random variable X. A random variable that is defined to be the total number of successes in n trials is a(n) _____ random variable. Answer: Poisson Difficulty: Easy 46.O. 47. Answer: Poisson Difficulty: Medium 43.41. The probability of a defective calculator is 10%. 2/e . A discrete variable that can often be used to describe the number of occurrences of an event over a specified interval of time or space is a(n) _____ random variable.

2/e 124 . If 10 calculators are selected at random.48. Determine the probability of 6 patients arriving in a five-hour period. Determine the probability of at least 4 but no more than 8 patients arriving in a three-hour period.1359 6! Difficulty: Medium 52. 51. If 100 calculators are selected at random.9)(100) = 3 Difficulty: Medium Use the following information to answer questions 51-52: Historical data shows that the average number of patient arrivals at the intensive care unit of General Hospital is 3 patients every 2 hours. Essentials of Business Statistics.6174 Difficulty: Medium Bowerman.136 (e −7.1708) + (.9298 = .1898) = .10)(100) = 10 Difficulty: Medium 50.0702 P(X ≥ 3) = 1 – P(X ≤ 2) = 1 . Answer: . Answer: . what is the probability that 3 or more of the calculators will be defective? Answer: . If 100 calculators are selected at random.0702 Difficulty: Medium 49.5) 6 P( X = 6) = = .0824) + (.6174 P(4 ≤ X ≤ 8) = P(X = 8) + P(X = 7) + P(X = 6) + P(X = 5) + P(X = 4) P(4 ≤ X ≤ 8) = (..1)(. what is the expected number of defectives? Answer: 10 E[X] = µ x = (.1281) + (.0463) + (. Assume that the patient arrivals are distributed according to a Poisson distribution. what is the standard deviation of the number of defectives? Answer: 3 σ X = (.5 )(7.

0404 e −5 50 e− 5 51 + = .0404 0! 1! Difficulty: Medium Use the following information to answer questions 56-57: A vaccine is 95 percent effective. What is the probability that it is not effective for: 56. What is the probability of 0 or 1 trucks in one minute? Answer: . 2/e .0 8 8 8 8 8 ( ) ( ) ( ) ( ) 1 1 3 3 2 σ X = (3 − 5) 2 + (4 − 5) 2 + (5− 5) 2 + (6− 5) 2 = 1 8 8 8 8 Difficulty: Medium 55.0 8 8 8 8 8 Difficulty: Medium ( ) ( ) ( ) ( ) 54.0 E [ X ] = (3) 1 + (4) 1 + 5 3 + 6 3 = 40 = 5.95 ) 19 ( . Assume the number of trucks passing an intersection has a Poisson distribution with mean of 5 trucks per minute. What is the variance of X? Answer: 1. What is the expected value of X? Answer: 5.Use the following information to answer questions 53-55: If the probability distribution of X is: X 3 4 5 6 P(X) 1/8 1/8 3/8 3/8 53. One and only one individual out of 20 individuals? Answer: .3774 (20) ( .3774 Difficulty: Medium 125 Bowerman. Essentials of Business Statistics.05) 1 = .0 E [ X ] = (3) 1 + (4) 1 + 5 3 + 6 3 = 40 = 5.

1353 e −2 20 P( X = 0) = = e −2 = .95) 14 ( .2)3 (.0244 Difficulty: Easy Bowerman. More than one out of 20 individuals? Answer: .8698 P(X ≥ 7) = 1 – P(X ≤ 6) = 1 – (.1353 0! Difficulty: Medium (AS) 60. Essentials of Business Statistics.3774)] = . 2/e 126 . An archer hits a target 95% of the time.1302) = . The number of calls coming into a PBX follows a Poisson process with a mean of 120 calls per hour. what is the probability that x is greater than 6? Answer: .0244 ( . what is the probability of obtaining 3 successes in 10 trials if the number of successes is binomial? Answer: .2.57. What is the probability of no calls in a one-minute interval? Answer: .2641 Difficulty: Medium 58.3585) + (.2013 3!(10 − 3)! Difficulty: Medium 59.2641 P(X ≥ 2) = 1 – [P(X = 0) + p(X =1)] P(X ≥ 2) = 1 – [(. If the probability of a success on a single trial is .8) 7 = .05) 1 =. If x is a Poisson random variable with a mean of 10.2013 10! (. What is the probability he/she will miss the target for the first time on the 15th shot? Answer: .8698 Difficulty: Medium 61.

0044) + (.1126 8! Difficulty: Medium 66. If x is a Poisson random variable with a mean of 10. Three candidates run for different offices in different counties.1762 20! P ( X = 10) = (.7037 27 27 Difficulty: Hard 0 3 63.7037 P ( X ≥ 1) = 1 − P ( X = 0) 8 3! 1 2 P ( X = 0) = = 27 3! 3 3 19 P ( X ≥ 1) = 1 − 8 = = .5) 10 = . Essentials of Business Statistics. What is the probability that at least one of them will be elected? Answer: .0046 Difficulty: Hard 64. What is the probability of getting exactly 10 heads? Answer: . what is the probability that x is equal to 8? Answer: .9995 Difficulty: Medium (AS) 65.0005) = .0002) = . What is the probability of guessing 5 or more questions correctly? Answer: . each with 4 alternatives.0046 P(X ≥ 5) = P(X = 5) + P(X = 6) P(X ≥ 5) = (.1126 e−10 108 P ( X = 8) = = . Twenty coins are tossed.1762 10!(20 −10)! Difficulty: Medium 127 Bowerman. 2/e . If x is a Poisson random variable with a mean of 10.5) 10(. what is the probability that x is greater than or equal to 2? Answer: .9995 P(X ≥ 2) = 1 – [P(X = 0) + P(X = 1)] P(X ≥ 2) = 1 – (0 + . Each has a one in three chance of being elected in his/her county. A test has 6 multiple choice questions.62.

625) P ( X = 3) = = = .6065)(. the probability of success is 40% and the number of trials is 5.2138 3! 6 Difficulty: Medium Use the following information to answer questions 70-75: For a binomial process.2 Difficulty: Medium Bowerman.6) = 1.0821)(15. 2/e 128 .53 (. What is the probability that during the next five minutes three cars will arrive? Answer: .5 cars per minute.40) = 2 Difficulty: Medium 71.2907 2 8 10! 1 5 P( X = 2) = = .53 (. 70. Answer: 1.2 σ 2 x = (5)(. What is the probability that during the next minute three cars will arrive? Answer: . if a fair die is rolled 10 times. Essentials of Business Statistics. The arrivals are distributed according to the Poisson distribution.5 . Find the variance. cars arrive at a tollbooth on the East-West toll road at an average rate of 0.0126 e −.2907 2!8! 6 6 Difficulty: Hard Use the following information to answer questions 68-69: During off hours.5 2. 68. Find the expected value.125) P ( X = 3) = = = . Answer: 2 E[X] = (5)(. Determine the probability that a 3 will appear twice.2138 e −2.0126 3! 6 Difficulty: Medium 69.4)(. Answer: .67.

0954 σ X = (5)(. Find the P(X = 2).0778) + (.337 Difficulty: Medium 74. 2/e . Find the standard deviation.6) = .72. Find P(X > 4).4)5 = . where X = the number of arrivals per minute. Answer: 1. Consider a Poisson distribution with an average of 3 customers per minute at the local grocery store. Answer: . Essentials of Business Statistics. If X = the number of arrivals per minute: 129 Bowerman.2592) = .3456 2!3! Difficulty: Medium 76.0102 Difficulty: Medium 75. Find P(X ≤ 1).0102 P(X = 5) = (. Answer: .4)(.3370 P(X ≤ 1) = [P(X = 0) + P(X = 1) P(X ≤ 1) = (.0954 Difficulty: Medium 73. Consider a Poisson distribution with an average of 3 customers per minute at the local grocery store.4) (.2= 1.6) = 1. Determine the expected number of customer arrivals for a five-minute period Answer: 15 µ = (3)(5) = 15 Difficulty: Easy (AS) 77. Write a formula for the probability of X.3456 5! 2 3 P ( X = 2) = (. Answer: . Answer: e −3 3 X P( X ) = X! Difficulty: Medium Use the following information to answer questions 78-83: Consider a Poisson distribution with an average of 3 customers per minute at the local grocery store.

7321 Difficulty: Easy 81.732 σ X = 3 = 1.224 e −3 33 (. Answer: 1. Find the probability of more than 7 customers arriving within a minute.5 1 1 1 1 1 1 E [ X ] = 1 + 2 + 3 + 4 + 5 + 6 6 6 6 6 6 6 Difficulty: Medium Bowerman.0002 + . Answer: . If X = the number of arrivals per minute.0008 + . If X = the number of arrivals per minute.0002 + . Essentials of Business Statistics. Answer: .9997 Difficulty: Medium 82.78.0027 + . Find the expected value of X.0081 + .0119 Difficulty: Medium 83. Answer: 3 Difficulty: Easy 79.9997 P(X ≤ 10) = 1 – P(X ≥ 11) = 1 – (.0001 = . find the variance of X. Find the probability of 10 customers or less arriving within a minute. 2/e 130 .0119 P(X ≥ 8) = .0001) = . Answer: 3 σ 2 = µ = 3 Difficulty: Easy 80. One die is thrown. find the standard deviation of X.0498)(27) P ( X = 3) = = = . Consider a Poisson distribution with an average of 3 customers per minute at the local grocery store.224 3! 6 Difficulty: Medium 84. Consider a Poisson distribution with an average of 3 customers per minute at the local grocery store. What is the expected value of the number of dots on the top face of the die? Answer: 3. Answer: . Find the probability of 3 customers arriving within a minute.

1) + (2 – 2.9125 E[X] = (1)(.2 2 . Answer: .2 1 .2) + (4)(.3 .2) + (9)(. Compute the variance value of X.2 4 .2) = 1.1) + (2)(.5 compute the expected value of X.5 3 .1 2 . Answer: 1.2 compute the expected value of X.2) + (4)(.5) + (3)(.2) + (-1)(.85.2) = 2.2 87.3 E[X] = -1(.5) + (3 – 2.8 E[X] = (-2)(. Answer: 2. 2/e .2 9 .5 σ 2 x = = (1 – 2.5) 2 (.5) 2 (.5 Difficulty: Medium 88.5 E[X] = (1)(.5) = .2) + (1)(.1) + (2)(. If X has the probability distribution X P(X ) -2 .2) + 0(.5) + (3)(.8 Difficulty: Medium (AS) Use the following information to answer questions 87-88: X has the following probability distribution P(X): X P(X) 1 .5) 2 (.2) + (4 – 2.2) + (2)(.2 -1 .3 Difficulty: Medium 86. Compute the expected value of X.2 .2) = 2.9125 Difficulty: Medium 131 Bowerman. Answer: . If X has the probability distribution X -1 0 1 P(X) . Essentials of Business Statistics.2) = .3) + 1(.5) 2 (.

0446 + . 2/e 132 . Determine the standard deviation of the number of defective units for 32 sheets of metal. Essentials of Business Statistics. In addition. Answer: X P(X) 0 1/8 1 3/8 2 3/8 3 1/8 Difficulty: Hard (AS) Use the following information to answer questions 93-97: Consider the experiment of tossing a fair coin three times and observing the number of heads that result (X = number of heads).152) P ( X = 7) = = = .0892) = . Construct the probability distribution for the random variable X.0025 + . 097. 89. Bowerman. the number of defects per unit is distributed according to Poisson distribution.0149 + . A batch has just been completed.0003)(2.8488 Difficulty: Medium 91.Use the following information to answer questions 89-91: Historical data for a local steel manufacturing company shows that the average number of defects per standard sheet of steel is 2.1396 7! 5040 Difficulty: Medium 90.8488 P(X ≥ 4) = 1 – [P(X = 0) + P(X = 1) + P(X = 2) + P(X = 3)] P(X ≥ 4) = 1 – (. Consider the experiment of tossing a fair coin three times and observing the number of heads that result (X = number of heads).1396 e −8 87 (. Answer: 8 (2)(32) = 64 = 8 Difficulty: Easy 92. What is the probability that there will be a total of 7 defects on four standard sheets of steel? Answer: 0. What is the probability that the first three units manufactured in this batch will contain at least a total of 4 defects? Answer: 0.

866 Difficulty: Hard 96. If you were asked to play a game in which you tossed a fair coin three times and were given $2 for every head you threw. What is the standard deviation for this distribution? Answer: .0 8 8 8 8 Difficulty: Hard ( ) ( ) ( ) ( ) 133 Bowerman.5 E [ X ] = µ X = (0) 1 + (1) 3 + (2) 3 + 3 1 = 1. how much would you expect to win on average? Answer: $3 Expected return = (0) 1 + ($2)(1) 3 + ($2)(2) 3 + ($2)(3) 1 = 3.5 8 8 8 8 Difficulty: Hard ( ) ( ) ( ) ( ) 94.5) 2 + (2 − 1.75 8 σ X = . Determine the expected number of heads.93.75 = .5)2 + (2 − 1.75 8 8 8 8 Difficulty: Hard ( ) ( ) ( ) ( ) 95.5)2 = . What is the variance for this distribution? Answer: .866 E [ X ] = µ X = (0) 1 + (1) 3 + (2) 3 + 3 1 = 1.75 E [ X ] = µ X = (0) 1 + (1) 3 + (2) 3 + 3 1 = 1.5 8 8 8 8 1 3 3 2 σ X = (0 − 1.5)2 + (3 − 1.5 8 8 8 8 1 3 3 1 2 σ X = (0 − 1.5) 2 + (3− 1. Answer: 1.5) 2 + (1− 1.5)2 + (1 − 1. 2/e .5) 2 8 8 8 ( ) ( ) ( ) ( ) 1 = . Essentials of Business Statistics.

000) = 79.50 . Profit Contribution -$ 30.4557 Difficulty: Medium 101.4 µ x = np = (.000 $200. Based on the information given above.000 < 90. A pharmaceutical company has determined that if a new cholesterol-reducing drug is manufactured (introduced to the market). Essentials of Business Statistics.4557 P(x≥3) = P(x=3) + p(x=4) + p(x=5) + p(x=6)=.4 Difficult: Easy Bowerman.20 .5(50.4)=2.97. 2/e 134 .6)(. find the probability 98. Exactly three of the individuals has group A blood? Answer: . Find the mean number of individuals having group A blood. should the company begin manufacturing the new drug? Answer: No (79. None of the individuals has group A blood? Answer: .30 The company management has decided to market this product if the expected contribution to profit for the next six months is more than $90. If six (6) individuals give blood.000) µ x = .000) + . 40% of all individuals have group A blood.000 $ 50.2(-30.000.3(200.000 Probability of profit contribution .0467 Difficulty: Easy 99. the following probability distribution will describe this drug's contribution to the company's profits during the next six months. Answer: 2.000) + .000 Difficulty: Medium Use the following information to answer questions 98-102: According to data from the state blood program.2765 Difficulty: Easy 100. At least 3 of the individuals have group A blood Answer: .

What is her expected gain? Answer: $7000 µ x = (. Would you accept or reject the claim? Explain. five or more would contain errors if the theory is valid? Answer: .75 that troubles in a residential service can be repaired on the same day. Assume that she has to spend $5000 preparing the case.102.05 Difficulty: Medium 103.0433 Difficulty: Easy 105. would you believe the data from the state blood program? Why or why not? Answer: Yes because probability > . 2/e . what is the probability that: 106.0089)+(. To check this theory. Essentials of Business Statistics. If she wins the case she will make $40.0004)+(0001)=. Answer: Reject claim because P < .0319)+(. 20 invoices are randomly selected and 5 are found to have errors.3)(35000)=7000 Difficulty: Hard Use the following information to answer questions 104-36: Your company’s internal auditor believes that 10% of the company’s invoices contain errors.2373 P(x = 5) = . but if she loses she gets nothing. the data show that the likelihood is 0.7)(-5000) + (. Based on the probability in question 100. 3 have group A blood.000. All five will be repaired on the same day Answer: . What is the probability that of the 20 invoices written.0433 P(x≥5)= (. Historically. For the first five troubles reported on a given day.3 that she can win a discrimination suit. Suppose that of the six randomly selected individuals.0020)+(. 104. A lawyer believes that the probability is .2373 Difficulty: Easy 135 Bowerman.05 Use the following information to answer questions 106-109: An important part of the customer service responsibilities of a cable company relates to the speed with which trouble in service can be repaired.

72 = . what is the average number you expect to be delivered the next day? Answer: 7.0156 Difficult: Medium 108.0046 P(x<2) = P(x=0) + P(x=1) = .2 Difficulty: Easy (AS) 112.2 µ x = np =(8)(.4305 Difficulty Easy (AS) 111. Answer: .1) = .75 µ x = np = (5)(.2)(. Fewer than two troubles will be repaired on the same day? Answer: .85 Difficulty: Medium (AS) Bowerman. Answer: . At least 3 troubles will be repaired on the same day.75) = 3.85 Σ= npq = (7. Essentials of Business Statistics. 110.107. Calculate the standard deviation of the number delivered. Answer: .8965Difficulty: Medium 109.9) = 7.9624 P(x≥3) = 1-(P≤2) = . what is the probability that all of then will be delivered the next day. Of the eight. 2/e 136 . Find the mean number of troubles repaired on the same day Answer: 3.75Difficulty: Easy Use the following information to answer questions 110-113: The Post Office has established a record in a major Midwestern city for delivering 90% of its local mail the next working day.4305 P(x=8) = . If you mail eight local letters.

000 Hummer for its full value against theft at a premium of $1500 per year.5≤x≤8)= P(6≤x≤8)=(. 2/e .85)= -4. Answer: $97.5 + . Find the premium that the insurance company should charge if its wants its expected net profit to be $2000? Answer: $2.75=937. If the probability of rain is 0.50 2000 = (x-75000)(.50 µ x = (-30)(.1361 P(x=4) = .1361 Difficulty: Medium 137 Bowerman.2 ±2(. Looking at a random sample of 8 jobs that is has contracted: 117.9619 P(7. Essentials of Business Statistics.0075x – 562.50 Difficulty: Hard 116.9925)=-551.50 µ x = (-73500)(.3826)+(.0075) + (1500)(. A car wash loses $30 on rainy days and makes $120 on days when is does not rain. 115.85)) = p(7.1488)=9616 Difficulty: Hard (AS) 114.15. Answer: . Calculate the probability that exactly 4 of the jobs were not completed within the bid time.113. What is the probability that the number of delivered will be within 2 standard deviations of the mean Answer: .25+1488.0075. Answer:$937. calculate the car wash’s expected profit.7) = P(5.15) + (120)(.562.0075) + x(.9925x=2562.9925)=. Suppose that the probability that the Hummer will be stolen is 0.5 Difficulty: Hard Use the following information to answer questions 117-119: A large disaster cleaning company estimates that 30% of the jobs it bids on are finished within the bid time.4305)+(.50+102= 97. Calculate the insurance company’s expected net profit.2 ±1.50 Difficulty: Medium Use the following information to answer questions 115-116: An insurance company will insure a $75.

3. Find the probability that of 5 delivered chips.0000 B) .3. Answer: 2.7) = 1.0922 C) .118.4)(.5506 σ = npq = (2. According to a survey of adults. Essentials of Business Statistics. A) 12 B) 22 C) 32 D) 42 Answer: C Difficult: Medium Use the following information to answer questions 122-123: In the most recent election. If we plan on surveying 50 randomly selected adults. The probability that a given computer chip will fail is 0.4±1.4 Difficulty: Medium 119.2541)=. Answer: .9039 B) . 2/e 138 .3) = 2.0014 C) .0148 D) .68 =1. Find the probability that x (number of jobs finished on time) is within one standard deviation of the mean.3= (1.7) – 2.0038 D) . If a random sample of 20 students were surveyed: 122.0000 Answer: C Difficulty: Medium 121.4997 Answer: B Difficulty: Medium Bowerman. A) . Calculate the mean number of jobs completed within the bid time. 19% of all eligible college students voted.4 µ x = np = 8(.3 (. A) . 2.2965)+(. find the mean number of adults who would have regular savings accounts. 64% have money in a regular savings account.1.02. Find the probability that exactly half voted in the election.5506 Difficulty: Hard Multiple Choice 120. exactly 2 will fail.

80 Answer: B Difficulty: Medium 125.0000 B) .80 D) µ = 7.56.88] B) [7.45] Answer: A Difficulty: Medium 139 Bowerman.4997 Answer: C Difficulty: Medium 124. A) . 2/e . σ = 1. 30% of the teachers who left teaching did so because they were laid off. Find the probability that none of the students voted A) .44.43 11.3000 B) .0014 C) . Find the probability that exactly 4 of them were laid off. In a study conducted for the State Department of Education. σ = 2.44. If IRS examiners are assigned randomly selected returns in batches of 12. If an organization buys 10 of these appliances. calculate an interval that contains 95. σ = 2.44% of all the appliances that won’t require repair.81 10.67 C) µ = 4. Essentials of Business Statistics.19] D) [8.0148 D) .67 B) µ = 4. gives a warranty and 95% of its appliances do not require repair before the warranty expires. σ = 1.2668 C) .123.12 10.2001 D) .80.0090 Answer: C Difficulty: Medium 126. A company manufactures an appliance.55 10. 37% include errors made by the taxpayer. Of all individual tax returns. find the mean and standard deviation for the number of erroneous returns per batch. A) [8.57] C) [8. Assume that we randomly select 10 teachers who have recently left their profession. A) µ = 2.

0330 B) . If 6 college freshmen are randomly selected. it was found that 25% of college freshmen support increased military spending. 2/e 140 . Exactly 3 support increased military spending A) .7844 C) .1318 C) . find the mean for the number of defects in these groups of 160 (rounded to nearest whole number).127.1318 C) .9624 D) . A) 56 B) 35 C) 29 D) 25 Answer: D Difficulty: Medium 128.9624 Answer: B Difficulty: Medium (AS) 130.8000 Answer: B Difficulty: Medium Bowerman. find the probability of getting exactly four correct answers.9954 Answer: C Difficulty: Medium (AS) 129. of which one is correct. A manufacturer tested a sample of semiconductor chips and found that 35 were defective and 190 were good.7844 Answer: C Difficulty: Medium (AS) 131. Only 1 supports increased military spending A) . Essentials of Business Statistics. In a study conducted by UCLA. If all answers were guesses. A multiple-choice test has 30 questions and each one has five possible answers.7844 D) .3560 D) .0330 B) .0330 B) .1325 C) .2552 D) . find the probability that: Fewer than 4 support increased military spending A) . A) . If additional tests are to be conducted with random samples of 160 semiconductor chips.0604 B) .

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- Chapter 01

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