University of Hawaii at Manoa, Department of Economics Baybars Karacaovali

ECON 321 – Introduction to Statistics

EXTRA SAMPLE MIDTERM EXAMINATION 3 SOLUTIONS

1. True or False?
The driving time between Big Rapids and Grand Rapids is an example of a discrete
random variable.
A. True
B. False

Answer B

Continuous. This is a measurement that could take on any value within an interval.

2. A new car salesperson knows that he sells cars to one customer out of 20 who enter
the showroom. The probability that he will sell a car to exactly two of the next three
customers is:
A. 0.9939
B. 0.0075
C. 0.0071
D. 0.0851
E. 0.1354

Answer C

Let the random variable x represent the number of customers the salesperson sells a car to
out of the next three customers.
1
x follows a binomial distribution with n = 3 and π = = 0.05.
20
The probability that he will sell a car to exactly two of the next three customers is

3. Brendalee and Molly go to a coffee shop during their lunch break and toss a coin to
see who will pay. The probability that Brendalee will pay three days in a row is:
A. 0.0150
B. 0.1250
C. 0.2500
D. 0.5000
E. None of the above.

Answer B
Let x represent the number of days Brendalee will pay for their lunch out of the three
days. x follows a binomial distribution with n = 3 and π = 0.5. The probability that
Brendalee will pay three days in a row is

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University of Hawaii at Manoa, Department of Economics Baybars Karacaovali
ECON 321 – Introduction to Statistics

4. True or False?
One characteristic of a discrete probability distribution is that the sum of the
probabilities for all the possible values for x must be between 0 and 1.
A. True
B. False

Answer B

∑ P( x ) = 1 [i.e. values of x are collectively exhaustive (the prob. dist. includes all
i

possible values) and mutually exclusive (only one value can occur for a given
experiment)]

5. Classify the following random variables according to whether they are discrete or
continuous:
- The average daily consumption of water in a U.S. household.
- The number of three-point shots completed in a college basketball game.
A. water consumption - discrete; number of three-point shots - discrete
B. water consumption - discrete; number of three-point shots - continuous
C. water consumption - continuous; number of three-point shots - discrete
D. water consumption - continuous; number of three-point shots - continuous

Answer C

Water Consumption - Continuous: This is a measurement that could take on any

value within an interval.

Number of three point shots - Discrete: The words "number of" and "completed" are the
keys to this conclusion. "Number of" and “completed” imply a variable that can be
counted and hence can take only certain values along an interval.

6. A survey of college students taking the professional exam to be certified as public

school teachers shows that 15 percent fail. On a national exam day, 12,000 students
take the test. Let x denote the number who fail. The mean and standard deviation of
the random variable x are, respectively:
A. 1800; 1530
B. 1800; 39.11
C. 10,200; 1530
D. 10,200; 39.11
E. 1200; 35.71

Answer B

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University of Hawaii at Manoa, Department of Economics Baybars Karacaovali
ECON 321 – Introduction to Statistics

Number of students who fail the professional exam follows a binomial distribution where
n = 12000 and π = 0.15
Mean:
Variance:
Standard deviation:

7. In the following probability distribution, the random variable x represents the

number of activities a parent of a 6th- to 8th -grade student is involved in.
x P(x)
0 0.073
1 0.117
2 0.258
3 0.322
4 0.230
Is this a discrete probability distribution?
A. Yes.
B. No, because all the probabilities are between 0 and 1.
C. No, because the sum of the probabilities is 1.

Answer A

This is a discrete probability distribution because all the probabilities are between 0 and 1
(inclusive) and the sum of the probabilities is 1
(i.e. because 0 ≤ P(xi) ≤ 1 and
∑ P ( xi ) = 1
for all xi).

8. Bill has to sell three more cars this month in order to meet his quota. Tonight he has
after-dinner appointments with five prospective customers, each of whom happens
to be interested in a different car. If he has a 30% chance of success with each
customer, what is the probability that he will meet his quota by tomorrow morning?
A. 0.0024
B. 0.0284
C. 0.1323
D. 0.1631
E. 0.1681

Answer D

Let the random variable x be the number of cars that Bill will sell after meeting 5 clients.
x follows a binomial distribution with n = 5 and π = 0.3. The probability that he will sell
three or more cars (i.e. meet his quota) is .

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University of Hawaii at Manoa, Department of Economics Baybars Karacaovali
ECON 321 – Introduction to Statistics

Or alternatively and simply we can use Table IV (Cumulative Binomial Probability

Distribution), 𝑃(𝑥 ≥ 3) = 1 − 𝑃(𝑥 < 3) = 1 − 𝑃(𝑥 ≤ 2) = 1 − 0.8369 = 0.1631

9. Determine whether the random variable is discrete or continuous. State the possible
values of the random variable.
The amount of rain in City B during April.
A. The random variable is continuous. The possible values are r ≥0.
B. The random variable is continuous. The possible values are 0, 1, 2,…
C. The random variable is discrete. The possible values are r ≥0.
D. The random variable is discrete. The possible values are 0, 1, 2,…

Answer A

Continuous. This is a measurement that could take on any value within an interval.

10. An attorney representing a client in an injury suit surveys the jury panel and finds
that 30% of the potential jurors have experienced some type of job related injury.
The attorney is hopeful that he will have six of the twelve jurors from this group.
What is the probability that at least 6 jurors will have experienced a job-related
injury?
A. 0.0386
B. 0.0792
C. 0.1178
D. 0.1585
E. 0.9614

Answer C

Let the random variable x be the number of jurors who have experienced some type of job
related injury out of the twelve. x follows a binomial distribution with n = 12 and π =
0.3. The probability that at least 6 jurors will have experienced a job-related injury is

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University of Hawaii at Manoa, Department of Economics Baybars Karacaovali
ECON 321 – Introduction to Statistics

Or alternatively and simply we can use Table IV (Cumulative Binomial Probability

Distribution), 𝑃(𝑥 ≥ 6) = 1 − 𝑃(𝑥 < 6) = 1 − 𝑃(𝑥 ≤ 5) = 1 − 0.8822 = 0.1178

11. True or False?

In any normal distribution, the mean, median, mode, and standard deviation are all
at the same position on the horizontal axis.
A. True
B. False

Answer B

The mean, median and mode are all in the same position except the standard deviation
in a normal distribution.
The values of the mean, median and mode are the same.
symmetric Bell-shaped
Approach the horizontal
axis, but never reach it
Mean=median=mode

12. A small clothing store has an average weekly gross of $1,158 with a standard
deviation of $120. Let x be the store's gross during a randomly selected week. If this
is a normally distributed random variable, then the number of standard deviations
from $1,158 to $1,360 is:
A. 0.4535.
B. 0.0465.
C. 20.98.
D. 1.683.
E. None of the above.

Answer D

1,360 − 1,158 202

= ≈ 1.683
120 120

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University of Hawaii at Manoa, Department of Economics Baybars Karacaovali
ECON 321 – Introduction to Statistics

13. Using the standard normal table, the total area between z = -0.75 and z = 1.21 is:
A. 0.2734
B. 0.3869
C. 0.3397
D. 0.2266
E. 0.6603

Answer E

The total area = P(z<1.21) - P(z<-0.75) = 0.8869 – 0.2266 = 0.6603

14. A bakery firm finds that its average weight of the most popular package of cookies is
32.06 ounces with a standard deviation of 0.1 ounces. What portion of cookie
packages will weigh less than 31.9 ounces or more than 32.3 ounces assuming the
package weights are normally distributed?
A. 0.8000
B. 0.4452
C. 0.4918
D. 0.9370
E. 0.0630

Answer E

31.9 − 32.06 32.3 − 32.06

𝑃(𝑥 < 31.9 𝑜𝑜 𝑥 > 32.3) = 𝑃 �𝑧 < 𝑜𝑟 𝑧 > �
0.1 0.1
= 𝑃(𝑧 < −1.6 𝑜𝑟 𝑧 > 2.4)

15. A manufacturer of tow chains finds that the average breaking point is at 3,500
pounds and the standard deviation is 250 pounds. If you pull a weight of at least
4200 pounds with this tow chain, what percentage of the time would you expect the
chain to break, assuming breaking point follows a normal distribution?
A. 2.8%
B. 0.26%
C. 49.74%
D. 99.74%
E. 50%

Answer B

. From the standard normal table, the area to the left of z = 2.8 is
0.9974. So P(x ≥4200)= 1−0.9974 = 0.0026

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University of Hawaii at Manoa, Department of Economics Baybars Karacaovali
ECON 321 – Introduction to Statistics

16. Given that z is a standard normal random variable and that the area to the right of z
is 0.1949, then the value of z must be:
A. 0.51.
B. -0.51.
C. 0.86.
D. -0.86.

Answer C

Check the standard normal table, the value of this z-score is 0.86.

17. IQ scores are normally distributed with a mean of 100 and a standard deviation of
15. Determine the 90th percentile for IQ scores. (In other words, which IQ score
would be exceeded by 10% of the people?)
A. 1.28
B. 81
C. 119
D. 114
E. 130

Answer C

Denoting 90th percentile for IQ Scores with y, we have P(x ≤ y) = 0.90. The value of z that
corresponds to a left-tail area of 0.9 is z = 1.28. Therefore, P (z≤1.28) = 0.9 and solving

for y, we get . So

18. Andre is a fearless circus performer who gets shot from a special cannon during the
grand finale of the show and is supposed to land on a safety net at the other side of
the arena. The distance he travels varies, but is normally distributed with a mean of
150 feet and a standard deviation of 10 feet. The landing net is 30 feet long.
To maximize Andre’s probability of landing on the net, how far away from the
cannon should he position the nearest edge of the net?
A. The net must be placed 30 feet from the cannon.
B. The net must be placed 135 feet from the cannon.
C. The net must be placed 150 feet from the cannon.
D. The net must be placed 165 feet from the cannon.
E. The net must be placed 180 feet from the cannon.

Answer B

To maximize Andre’s probability of landing on the net, position the net so the center is at
the mean (150 ft from the cannon). The net must then be placed 150 – 15 = 135 feet from
the cannon, and hence lie between135 to 165 ft from the cannon.

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University of Hawaii at Manoa, Department of Economics Baybars Karacaovali
ECON 321 – Introduction to Statistics

19. A battery manufacturer has just begun distribution of its SuperVolt, a 6-volt lantern
battery for outdoor enthusiasts. Prototype tests of the new battery found the average
lifetime in continuous use to be 8 hours, with a standard deviation of 2 hours.
Battery lifetimes in such applications have been approximately normally distributed.
Edgar Evans, the consumer reporter for a large metropolitan newspaper, has
purchased one of the batteries to take along on a camping trip. On the first day of his
trip, Edgar goes fishing in his rowboat, becomes disoriented, and gets lost among the
many small islands in the large lake near his camp. Fortunately, Edgar has brought
along his trusty flashlight and its new SuperVolt battery. At 9 P.M., Edgar turns on
his flashlight and shines it into the air, hoping that someone will see his signal and
rescue him. Unfortunately, it is not until 3 A.M. that searchers begin their flight over
the lake. If Edgar’s light is still shining as they become airborne, they will easily spot
it from the air. When Edgar finally gets back to the city, what is the probability that
he will have an exciting story to tell about how his flashlight and its SuperVolt
battery were two of the heroes in his rescue?
A. 0.1587
B. 0.3869
C. 0.3397
D. 0.6603
E. 0.8413

Answer E

Assume the battery lifetimes to be normally distributed with µ = 8 hours and σ = 2 hours.
In order for Edgar to be rescued during the night, his flashlight must be able to shine
longer than the 6 hours from 9 PM to 3 AM.
The z value associated with P(x > 6) hours is (6 - 8)/2, or z = -1.00. Using the standard
x − µ 6−8
normal table P(x > 6) = P( > ) = P(z > -1.00) = 1 - P(z ≤-1) = 1 - 0.1587 =
σ 2
0.8413. There is a 0.8413 probability that Edgar’s flashlight will work long enough for
him to be seen and rescued.