Statistics For Business and Economics 12th Edition by James T. McClave - Test Bank

Statistics for Business And Economics
12th Edition by James T. McClave –

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Sample Questions

CHAPTER 4—INTRODUCTION TO PROBABILITY
MULTIPLE CHOICE
1. Each individual outcome of an experiment is called
a. the sample space
b. a sample point
c. an experiment
d. an individual
ANS: B PTS: 1 TOP: Probability Concepts
2. The collection of all possible sample points in an experiment is
a. the sample space
b. a sample point
c. an experiment
d. the population
ANS: A PTS: 1 TOP: Probability Concepts
3. A graphical method of representing the sample points of an experiment is
a. a frequency polygon
b. a histogram
c. an ogive
d. a tree diagram
ANS: D PTS: 1 TOP: Probability Concepts
4. An experiment consists of selecting a student body president and vice president. All
undergraduate students (freshmen through seniors) are eligible for these offices. How many
sample points (possible outcomes as to the classifications) exist?
a. 4
b. 16
c. 8
d. 32
5. Any process that generates well-defined outcomes is
a. an event
b. an experiment
c. a sample point
d. a sample space
6. The sample space refers to
a. any particular experimental outcome
b. the sample size minus one
c. the set of all possible experimental outcomes
d. an event
ANS: C PTS: 1 TOP: Probability Concepts
7. In statistical experiments, each time the experiment is repeated
a. the same outcome must occur
b. the same outcome can not occur again
c. a different outcome may occur
d. a different out come must occur

8. When the assumption of equally likely outcomes is used to assign probability values, the
method used to assign probabilities is referred to as the
a. relative frequency method
b. subjective method
c. probability method
d. classical method
9. The counting rule that is used for counting the number of experimental outcomes when n
objects are selected from a set of N objects where order of selection is not important is called
a. permutation
b. combination
c. multiple step experiment
d. None of these alternatives is correct.

10. The counting rule that is used for counting the number of experimental outcomes when n
objects are selected from a set of N objects where order of selection is important is called
a. permutation
b. combination
c. multiple step experiment
11. From a group of six people, two individuals are to be selected at random. How many
possible selections are possible?
a. 12
b. 36
c. 15
d. 8

12. When the results of experimentation or historical data are used to assign probability values,
the method used to assign probabilities is referred to as the
a. relative frequency method
c. classical method
d. posterior method
13. A method of assigning probabilities based upon judgment is referred to as the
a. relative method
b. probability method
c. classical method
d. subjective method

14. A sample point refers to the
a. numerical measure of the likelihood of the occurrence of an event
b. set of all possible experimental outcomes
c. individual outcome of an experiment
d. sample space
15. A graphical device used for enumerating sample points in a multiple-step experiment is a
a. bar chart
b. pie chart
c. histogram
16. The intersection of two mutually exclusive events

a. can be any value between 0 to 1
b. must always be equal to 1
c. must always be equal to 0
d. can be any positive value
17. Two events are mutually exclusive
a. if their intersection is 1
b. if they have no sample points in common
c. if their intersection is 0.5
18. The range of probability is
a. any value larger than zero

b. any value between minus infinity to plus infinity
c. zero to one
d. any value between -1 to 1
19. Which of the following statements is always true?
a. -1 P(Ei) 1
b. P(A) = 1 – P(Ac)
c. P(A) + P(B) = 1
d. åP 1
20. Events that have no sample points in common are
a. independent events
b. posterior events
c. mutually exclusive events
d. complements
21. Initial estimates of the probabilities of events are known as
a. sets
b. posterior probabilities
c. conditional probabilities
d. prior probabilities
22. Two events with nonzero probabilities
a. can be both mutually exclusive and independent
b. can not be both mutually exclusive and independent
c. are always mutually exclusive

d. are always independent
23. Two events, A and B, are mutually exclusive and each have a nonzero probability. If event A
is known to occur, the probability of the occurrence of event B is
a. one
b. any positive value
c. zero
d. any value between 0 to 1
24. The addition law is potentially helpful when we are interested in computing the probability of
a. independent events
b. the intersection of two events
c. the union of two events
d. conditional events

25. The sum of the probabilities of two complementary events is
a. Zero
b. 0.5
c. 0.57
d. 1.0
26. Events A and B are mutually exclusive if their joint probability is
a. larger than 1
b. less than zero
c. zero
d. infinity

27. The set of all possible outcomes of an experiment is
a. an experiment
b. an event
c. the population
d. the sample space
28. Assuming that each of the 52 cards in an ordinary deck has a probability of 1/52 of being
drawn, what is the probability of drawing a black ace?
a. 1/52
b. 2/52
c. 3/52
d. 4/52
29. If a dime is tossed four times and comes up tails all four times, the probability of heads on
the fifth trial is
a. smaller than the probability of tails
b. larger than the probability of tails
c. 1/2
d. 1/32
30. If a six sided die is tossed two times and “3” shows up both times, the probability of “3” on
the third trial is
a. much larger than any other outcome
b. much smaller than any other outcome
c. 1/6
d. 1/216
31. If A and B are independent events with P(A) = 0.65 and P(A Ç B) = 0.26, then, P(B) =
a. 0.400
b. 0.169
c. 0.390
d. 0.650
32. If P(A) = 0.4, P(B | A) = 0.35, P(A È B) = 0.69, then P(B) =
a. 0.14
b. 0.43
c. 0.75
d. 0.59

33. Of five letters (A, B, C, D, and E), two letters are to be selected at random. How many
possible selections are possible?
a. 20
b. 7
c. 5!
d. 10
34. Given that event E has a probability of 0.31, the probability of the complement of event E
a. cannot be determined with the above information
b. can have any value between zero and one
c. 0.69
d. is 0.31

35. Three applications for admission to a local university are checked, and it is determined
whether each applicant is male or female. The number of sample points in this experiment is
a. 2
b. 4
c. 6
d. 8
36. Assume your favorite soccwr team has 2 games left to finish the season. The outcome of
each game can be win, lose or tie. The number of possible outcomes is
a. 2
b. 4
c. 6
d. 9

37. Each customer entering a department store will either buy or not buy some merchandise. An
experiment consists of following 3 customers and determining whether or not they purchase any
merchandise. The number of sample points in this experiment is
a. 2
b. 4
c. 6
d. 8
38. An experiment consists of tossing 4 coins successively. The number of sample points in this
experiment is
a. 16
b. 8
c. 4
d. 2

39. An experiment consists of three steps. There are four possible results on the first step, three
possible results on the second step, and two possible results on the third step. The total number
of experimental outcomes is
a. 9
b. 14
c. 24
d. 36
40. Since the sun must rise tomorrow, then the probability of the sun rising tomorrow is
a. much larger than one
b. zero
c. infinity

41. If two events are independent, then
a. they must be mutually exclusive
b. the sum of their probabilities must be equal to one
c. their intersection must be zero
42. Bayes’ theorem is used to compute
a. the prior probabilities
b. the union of events
c. intersection of events
d. the posterior probabilities

43. On a December day, the probability of snow is .30. The probability of a “cold” day is .50. The
probability of snow and “cold” weather is .15. Are snow and “cold” weather independent events?
a. only if given that it snowed
b. no
c. yes
d. only when they are also mutually exclusive
44. One of the basic requirements of probability is
a. for each experimental outcome Ei, we must have P(Ei) 1
b. P(A) = P(Ac) – 1
c. if there are k experimental outcomes, then åP(Ei) = 1
d. åP(Ei) 1
45. The symbol Ç shows the

a. union of events
b. intersection of two events
c. sum of the probabilities of events
d. sample space
46. The symbol È shows the
a. union of events
b. intersection of two events
c. sum of the probabilities of events
d. sample space
47. The multiplication law is potentially helpful when we are interested in computing the
probability of
a. mutually exclusive events

b. the intersection of two events
c. the union of two events
d. conditional events
48. If two events are mutually exclusive, then their intersection
a. will be equal to zero
b. can have any value larger than zero
c. must be larger than zero, but less than one
d. will be one
49. The union of events A and B is the event containing all the sample points belonging to
a. B or A
b. A or B
c. A or B or both
d. A or B, but not both
50. If a penny is tossed three times and comes up heads all three times, the probability of heads
on the fourth trial is
a. zero
b. 1/16
c. 1/2
d. larger than the probability of tails
51. If a coin is tossed three times, the likelihood of obtaining three heads in a row is
a. zero
b. 0.500
c. 0.875
d. 0.125
52. The union of two events with nonzero probabilities
a. cannot be less than one
b. cannot be one
c. could be larger than one
53. If P(A) = 0.5 and P(B) = 0.5, then P(A Ç B)
a. is 0.00
b. is 1.00
c. is 0.5
54. If A and B are independent events with P(A) = 0.4 and P(B) = 0.6, then P(A Ç B) =
a. 0.76
b. 1.00
c. 0.24
d. 0.20
55. If A and B are independent events with P(A) = 0.2 and P(B) = 0.6, then P(A È B) =
a. 0.62
b. 0.12
c. 0.60
d. 0.68
56. If A and B are independent events with P(A) = 0.05 and P(B) = 0.65, then P(A ½ B) =
a. 0.05
b. 0.0325
c. 0.65
d. 0.8
57. If A and B are mutually exclusive events with P(A) = 0.3 and P(B) = 0.5, then P(A Ç B) =
a. 0.30
b. 0.15
c. 0.00
d. 0.20
58. If A and B are mutually exclusive events with P(A) = 0.3 and P(B) = 0.5, then P(A È B) =
a. 0.00
b. 0.15
c. 0.8
d. 0.2
59. A lottery is conducted using three urns. Each urn contains chips numbered from 0 to 9. One
chip is selected at random from each urn. The total number of sample points in the sample space
is
a. 30
b. 100
c. 729
d. 1,000
60. Of the last 100 customers entering a computer shop, 25 have purchased a computer. If the
classical method for computing probability is used, the probability that the next customer will
purchase a computer is
a. 0.25
b. 0.50
c. 1.00
d. 0.75
61. Events A and B are mutually exclusive with P(A) = 0.3 and P(B) = 0.2. Then, P(Bc) =
a. 0.00
b. 0.06
c. 0.7
d. 0.8
62. An experiment consists of four outcomes with P(E1) = 0.2, P(E2) = 0.3, and P(E3) = 0.4. The
probability of outcome E4 is
a. 0.500
b. 0.024
c. 0.100
d. 0.900
63. Events A and B are mutually exclusive. Which of the following statements is also true?
a. A and B are also independent.
b. P(A È B) = P(A)P(B)
c. P(A È B) = P(A) + P(B)
d. P(A Ç B) = P(A) + P(B)

64. A six-sided die is tossed 3 times. The probability of observing three ones in a row is
a. 1/3
b. 1/6
c. 1/27
d. 1/216
65. The probability of the occurrence of event A in an experiment is 1/3. If the experiment is
performed 2 times and event A did not occur, then on the third trial event A
a. must occur
b. may occur
c. could not occur

d. has a 2/3 probability of occurring
66. A perfectly balanced coin is tossed 6 times, and tails appears on all six tosses. Then, on the
seventh trial
a. tails can not appear
b. heads has a larger chance of appearing than tails
c. tails has a better chance of appearing than heads
67. In an experiment, events A and B are mutually exclusive. If P(A) = 0.6, then the probability of
B
a. cannot be larger than 0.4
b. can be any value greater than 0.6
c. can be any value between 0 to 1

d. cannot be determined with the information given
68. The set of all possible sample points (experimental outcomes) is called
a. a sample
b. an event
c. the sample space
d. a population
69. A method of assigning probabilities which assumes that the experimental outcomes are
equally likely is referred to as the
a. objective method
b. classical method
c. subjective method
d. experimental method

70. A method of assigning probabilities based on historical data is called the
a. classical method
c. relative frequency method
d. historical method
71. The probability assigned to each experimental outcome must be
a. any value larger than zero
b. smaller than zero
c. at least one
d. between zero and one

72. If P(A) = 0.58, P(B) = 0.44, and P(A Ç B) = 0.25, then P(A È B) =
a. 1.02
b. 0.77
c. 0.11
d. 0.39
73. If P(A) = 0.50, P(B) = 0.60, and P(A Ç B) = 0.30, then events A and B are
a. mutually exclusive events
b. not independent events
c. independent events
d. not enough information is given to answer this question

74. If P(A) = 0.62, P(B) = 0.47, and P(A È B) = 0.88, then P(A Ç B) =
a. 0.2914
b. 1.9700
c. 0.6700
d. 0.2100
75. If P(A) = 0.68, P(A È B) = 0.91, and P(A Ç B) = 0.35, then P(B) =
a. 0.22
b. 0.09
c. 0.65
d. 0.58

76. If A and B are independent events with P(A) = 0.4 and P(B) = 0.25, then P(A È B) =
a. 0.65
b. 0.55
c. 0.10
d. 0.75
77. If a penny is tossed three times and comes up heads all three times, the probability of heads
on the fourth trial is
a. smaller than the probability of tails
b. larger than the probability of tails
c. 1/16
d. 1/2
78. If P(A) = 0.50, P(B) = 0.40, then, and P(A È B) = 0.88, then P(B ½ A) =
a. 0.02
b. 0.03
c. 0.04
d. 0.05
79. If A and B are independent events with P(A) = 0.38 and P(B) = 0.55, then P(A ½ B) =
a. 0.209
b. 0.000
c. 0.550
d. 0.38

80. If X and Y are mutually exclusive events with P(X) = 0.295, P(Y) = 0.32, then P(X ½ Y) =
a. 0.0944
b. 0.6150
c. 1.0000
d. 0.0000
81. If a six sided die is tossed two times, the probability of obtaining two “4s” in a row is
a. 1/6
b. 1/36
c. 1/96
d. 1/216

82. If A and B are independent events with P(A) = 0.35 and P(B) = 0.20, then, P(A È B) =
a. 0.07
b. 0.62
c. 0.55
d. 0.48
83. If P(A) = 0.7, P(B) = 0.6, P(A Ç B) = 0, then events A and B are
a. not mutually exclusive
b. mutually exclusive
c. independent events
d. complements of each other

84. If P(A) = 0.45, P(B) = 0.55, and P(A È B) = 0.78, then P(A ½ B) =
a. zero
b. 0.45
c. 0.22
d. 0.40
85. If P(A) = 0.48, P(A È B) = 0.82, and P(B) = 0.54, then P(A Ç B) =
a. 0.3936
b. 0.3400
c. 0.2000
d. 1.0200
86. Some of the CDs produced by a manufacturer are defective. From the production line, 5
CDs are selected and inspected. How many sample points exist in this experiment?
a. 10
b. 25
c. 30
d. 32

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Statistics For Business and Economics 12th Edition by James T. McClave - Test Bank

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Statistics for Business And Economics

12th Edition by James T. McClave –

To Purchase this Complete Test Bank with Answers Click the

If face any problem or Further information contact us At tbzuiqe@gmail.com

CHAPTER 4—INTRODUCTION TO PROBABILITY

1. Each individual outcome of an experiment is called

a. the sample space

ANS: B PTS: 1 TOP: Probability Concepts

2. The collection of all possible sample points in an experiment is

a. the sample space

ANS: A PTS: 1 TOP: Probability Concepts

3. A graphical method of representing the sample points of an experiment is

ANS: D PTS: 1 TOP: Probability Concepts

ANS: B PTS: 1 TOP: Probability Concepts

5. Any process that generates well-defined outcomes is

ANS: B PTS: 1 TOP: Probability Concepts

6. The sample space refers to

a. any particular experimental outcome

b. the sample size minus one

c. the set of all possible experimental outcomes

ANS: C PTS: 1 TOP: Probability Concepts

7. In statistical experiments, each time the experiment is repeated

a. the same outcome must occur

b. the same outcome can not occur again

c. a different outcome may occur

d. a different out come must occur

ANS: C PTS: 1 TOP: Probability Concepts

a. relative frequency method

ANS: D PTS: 1 TOP: Probability Concepts

c. multiple step experiment

d. None of these alternatives is correct.

ANS: B PTS: 1 TOP: Probability Concepts

c. multiple step experiment

d. None of these alternatives is correct.

ANS: A PTS: 1 TOP: Probability Concepts

a. relative frequency method

ANS: A PTS: 1 TOP: Probability Concepts

13. A method of assigning probabilities based upon judgment is referred to as the

ANS: D PTS: 1 TOP: Probability Concepts

14. A sample point refers to the

a. numerical measure of the likelihood of the occurrence of an event

b. set of all possible experimental outcomes

c. individual outcome of an experiment

ANS: C PTS: 1 TOP: Probability Concepts

d. None of these alternatives is correct.

ANS: D PTS: 1 TOP: Probability Concepts

16. The intersection of two mutually exclusive events

b. must always be equal to 1

c. must always be equal to 0

d. can be any positive value

ANS: C PTS: 1 TOP: Probability Concepts

17. Two events are mutually exclusive

b. if they have no sample points in common

c. if their intersection is 0.5

d. None of these alternatives is correct.

ANS: B PTS: 1 TOP: Probability Concepts

18. The range of probability is

a. any value larger than zero

d. any value between -1 to 1

ANS: C PTS: 1 TOP: Probability Concepts

19. Which of the following statements is always true?

ANS: B PTS: 1 TOP: Probability Concepts

20. Events that have no sample points in common are