Business Statistics A First Course 2nd Edition Sharpe Test Bank Download

Business Statistics A First Course 2nd
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Chapter 8: Random Variables and Probability Models – Quiz A

Name
1. A fast food restaurant just leased a new freezer and food fryer for three years. The
service contract for the freezer offers unlimited repairs for a fee of $125 a year plus a $35
service charge for each repair needed. The restaurant’s research indicates that during a
given year 80% of these freezers need no repairs, 11% needed to be serviced once, 5%
twice, 4% three times, and none required more than three repairs.
a. Find the expected number of repairs for this freezer per year.
b. Find the standard deviation of the number of repairs per year.
c. What are the mean and standard deviation of the restaurant’s annual expense with the
service contract for the freezer?
2. Internet service providers (ISP) need to resolve customer problems as quickly as

possible. For one ISP, past data indicate that the likelihood is .80 that customer calls
regarding Internet service interruptions are resolved within one hour. Out of the next 10
customer calls about interrupted service,
a. What is the probability that exactly 7 will be resolved within one hour?
b. What is the probability that at least 7 will be resolved within one hour?
c. How many customers would be expected to have their service problems resolved
within one hour?
3. Suppose that incoming calls per hour to a customer service center of a small credit
union are uniformly distributed between 0 and 6 calls.
a. What is the probability that fewer than 3 calls are received per hour?
Copyright © 2014 Pearson Education, Inc.
b. What is the probability that at least 3 calls are received per hour?
c. What is the probability that more than 6 calls are received per hour?
4. A specific automotive part that a service station stocks in its inventory has an 8%
chance of being defective. Suppose many cars come into the service station needing this
part each week.
a. What is the probability that the fourth part retrieved from stock is the first defective?
b. What is the probability that the tenth part retrieved from stock is defective?
c. What is the expected number of parts retrieved until the first defective part?
8-1

8-2 Chapter 8 Random Variables and Probability Models
Chapter 8: Random Variables and Probability Models – Quiz A – Key
twice, 4% three times, and none required more than three repairs.
a. Find the expected number of repairs for this freezer per year.
E(X) = 0(0.80) + 1(0.11) + 2(0.05) + 3(0.04) = 0.33 repairs

Var(X) = (0 – 0. 33)2(0.80) + (2 – 0. 33)2 (0.05) + (3 – 0. 33)2(0.04) = 0.512
SD(X) = 0.512 = 0.72
c. What are the mean and standard deviation of the restaurant’s annual expense with the
service contract for the freezer?
Let C = $125 + $35X; E(C) = $125 + $35(0.33) = $136.55
SD(C) = $35(0.72) = $25.20

possible. For one ISP, past data indicate that the likelihood is .80 that customer calls
customer calls about interrupted service,
a. What is the probability that exactly 7 will be resolved within one hour?
Use binomial with n = 10, p = .80. Find P (X = 7) = .2013
b. What is the probability that at least 7 will be resolved within one hour?
P (X >= 7) = .8791
c. How many customers would be expected to have their service problems resolved
within one hour?
E(X) = np = 10(.80) = 8 customers
union are uniformly distributed between 0 and 6 calls.
a. What is the probability that fewer than 3 calls are received per hour?
3/7
b. What is the probability that at least 3 calls are received per hour?
4/7
c. What is the probability that more than 6 calls are received per hour?
0

Quiz A 8-3
part each week.
a. What is the probability that the fourth part retrieved from stock is the first defective?
Use the geometric with p = .08. Find P(X = 4) = .923.08 = .0623
b. What is the probability that the tenth part retrieved from stock is defective?
Use the geometric with p = .08. Find P(X = 10) = .929.08 = .0378
c. What is the expected number of parts retrieved until the first defective part?
E(X) = 1/p = 1/.08 = 12.5 parts.

Chapter 8: Random Variables and Probability Models – Quiz B

Name
1. A small business just leased a new computer and color laser printer for three years.
The service contract for the computer offers unlimited repairs for a fee of $100 a year
plus a $25 service charge for each repair needed. The company’s research indicates that
during a given year 86% of these computers need no repairs, 9% need to be repaired
once, 4% twice, 1% three times, and none required more than three repairs.
a. Find the expected number of repairs for this kind of computer per year.
c. What are the mean and standard deviation of the company’s annual expense with the
service contract for the computer?
2. A local unemployment office keeps track of the number of new claims filed each day.
Based on the data collected, it determines that the following probability distribution
applies:
Number of Claims Probability

0 .05
1 .15
2 .25
3 .45
4 .10
a. What is the expected number of new claims filed each day?
b. What is the standard deviation in the number of new claims filed each day?
c. What is the expected number of new claims filed each week? Assume the
unemployment office is open 5 days a week.
d. What is the standard deviation in the number of new claims filed each week? Assume
the unemployment office is open 5 days a week.
3. It is estimated that 20% o f luxury cars manufactured in 2008 were silver. A car
dealership typically sells 20 luxury cars per month.
a. What is the probability that 8 of the luxury cars sold per month are silver?
b. What is the probability that more than 10 of the luxury cars sold per month are silver?
c. How many silver luxury cars would you expect are sold per month?

Quiz B 8-5
4. For quality control purposes, a company that manufactures copper sheets routinely
takes samples from its production process. Since its product is often used for decorative
purposes, one inspection check involves counting the number of imperfections or flaws
on sheets that measure 36 sq. ft. Suppose the average number of imperfections per sheet
of this size is 3.
a. What is the probability that a sheet of this size has 2 imperfections?
b. What is the probability that a sheet of this size has no more than 2 imperfections?
c. What is the probability that a sheet half this size (18 sq. ft.) has 2 imperfections?

Chapter 8: Random Variables and Probability Models – Quiz B – Key
once, 4% twice, 1% three times, and none required more than three repairs.
a. Find the expected number of repairs for this kind of computer per year.
E(X) = 0(0.86) + 1(0.09) + 2(0.04) + 3(0.01) = 0.20 repairs

Var(X) = (0 – 0. 20)2(0.86) + (1 – 0.20)2 (0.09) + (2 – 0.20)2(0.04) + (3 – 0.20)2(0.01)
= 0.30
SD(X) = 0.55 repairs
c. What are the mean and standard deviation of the company’s annual expense with the
service contract for the computer?
Let C = 100 + 25X; E(C) = 100 + 25(0.20) = $105; SD(C) = 25(0.55) = $13.69
Based on the data collected, it determines that the following probability distribution
applies:
Number of Claims Probability

0 .05
1 .15
2 .25
3 .45
4 .10
a. What is the expected number of new claims filed each day?

E(X) = 0(.05) + 1(.15) + 2(.25) + 3(.45) + 4(.10) = 2.4 new claims
b. What is the standard deviation in the number of new claims filed each day?
Var(X)
= (0 – 2.4)2(.05) + (1 – 2.4)2 (.15) + (2 – 2.4)2(.25) + (3 – 2.4)2(.45) + (4 – 2.4)2(.10)
= 1.04
SD(X) = 1.02 new claims
c. What is the expected number of new claims filed each week? Assume the
unemployment office is open 5 days a week.
Let W = 5X
E(W) = E(5X) = 5E(X) = 5 (2.4) = 12 new claims per week.

Quiz B 8-7
d. What is the standard deviation in the number of new claims filed each week? Assume
the unemployment office is open 5 days a week.
SD(W) = SD(5X) = 5SD(X) = 5(1.02) = 5.1 claims per week
3. It is estimated that 20% of luxury cars manufactured in 2008 were silver. A car
dealership typically sells 20 luxury cars per month.
a. What is the probability that 8 of the luxury cars sold per month are silver?
Use binomial with n = 20, p = .20. Find P (X = 8) = 0.0222.
b. What is the probability that more than 10 of the luxury cars sold per month are silver?
Find P (X > 10) = 0.0006
c. How many silver luxury cars would you expect are sold per month?
E(X) = np = 20(.20) = 4 silver luxury cars
of this size is 3.
a. What is the probability that a sheet of this size has 2 imperfections?

Use the Poisson distribution with λ = 3 to find P(X = 2) = 0.2240
b. What is the probability that a sheet of this size has no more than 2 imperfections?
Use the Poisson distribution with λ = 3 to find P(X ≤ 2) = 0.4232
c. What is the probability that a sheet half this size (18 sq. ft.) has 2 imperfections?
Use the Poisson distribution with λ = 1.5 to find P(X = 2) = 0.2510

Chapter 8: Random Variables and Probability Models – Quiz C – Multiple Choice

Name
8.2. Find the expected value and standard deviation of a random variable.
twice, 4% three times, and none required more than three repairs. The expected number
of repairs for this freezer per year is
A. 1 repair.
B. 1.25 repairs.
C. 0.33 repairs.
D. 0.79 repairs.
E. 2.5 repairs.
twice, 4% three times, and none required more than three repairs. The standard deviation
of the number of repairs for this freezer per year is
A. 0.72 repairs.
B. 0.512 repairs2.
C 1.25 repairs.
D. 2.5 repairs2.
E. 0.33 repairs.
8.3 and 8.4. Solve applications involving expected values.

twice, 4% three times, and none required more than three repairs. The mean restaurant’s
annual expense with the service contract for this freezer is
A. $25.20.
B. $136.55.
C. $122.45.
D. $89.90.
E. $0.

Quiz C 8-9
8.5. Use the appropriate probability model (Binomial).

dealership typically sells 20 luxury cars per month. The probability that 8 of the luxury
cars sold per month are silver is
A. .0006.
B. .1276.
C. .0222.
D. .7779
E. None of the above.

dealership typically sells 20 luxury cars per month. The probability that more than 10 of
the luxury cars sold per month are silver is
A. .0006.
B. .1276.
C. .0222.
D. .7779
E. None of the above.
8.5. Use the appropriate probability model (Geometric).

part each week. What is the probability that the fourth part retrieved from stock is the
first defective?
A. 0.0064
B. 0.08
C. 0.0378
D. 0.0623
E. 0.3244

part each week. What is the expected number of parts retrieved until the first defective?
A. 8
B. 12.5
C. 10.5
D. 15
E. 20

8.5. Use the appropriate probability model (Uniform).

union are uniformly distributed between 0 and 6 calls. The probability that fewer than 3
calls are received per hour is
A. 3/6.
B. 4/6.
C. 3/7.
D. 4/7.
E. 1/6.

union are uniformly distributed between 0 and 6 calls. What is the probability that more
than 6 calls are received per hour?
A. 1/6
B. 1/7
C. 1
D. 3/7
E. 0
8.5. Use the appropriate probability model (Poisson).

of this size is 3. What is the probability that a sheet of this size has 2 imperfections?
A. 0.2240
B. 0.4232
C. 0.2510
D. 0.4591
E. 0.1365

Quiz C 8-11
Chapter 8 – Quiz C – Key
1. C
2. A
3. B
4. C
5. A
6. D
7. B
8. C
9. E
10. A

Chapter 8: Random Variables and Probability Models – Quiz D – Multiple Choice

Name
once, 4% twice, 1% three times, and none required more than three repairs. The expected
number of repairs for this kind of computer per year is
A. 0.20 repairs.
B. 0.55 repairs.
C. 0.89 repairs.
D. 1.00 repairs.
E. 1.20 repairs.
once, 4% twice, 1% three times, and none required more than three repairs. The standard
deviation in the number of repairs for this kind of computer per year is
A. 0.20 repairs.
B. 0.55 repairs.
C. 0.89 repairs.
D. 1.00 repairs.
E. 1.20 repairs.
8.3 and 8.4. Solve applications involving expected values.

once, 4% twice, 1% three times, and none required more than three repairs. The standard
deviation of the company’s annual expense with the service contract for the computer is
A. $105.
B. $10.25.
C. $187.42.
D. $13.69.
E. $2.75.

Quiz D 8-13
8.3and 8.4. Solve applications involving expected values.

Based on data collected, it determines that the expected number of new claims filed per
day is 2.4 with a standard deviation of 0.8688. Suppose that the office is open five days
per week. The expected number of new claims filed per week at this office is
A. 7.4.
B. 4.344.
C. 12.
D. 10.
E. 5.25.

possible. For one ISP, past data indicates that the likelihood is .80 that customer calls
customer calls about interrupted service, the probability that exactly 7 will be resolved
within one hour is
A. 0.2013.
B. 0.8791.
C. 0.7897.
D. 0.3452.
E. 0.1209.

possible. For one ISP, past data indicates that the likelihood is .80 that customer calls
customer calls about interrupted service, how many would be expected to have their
service problems resolved within one hour?
A. 2
B. 4
C. 6
D. 8
E. 10


union are uniformly distributed between 0 and 6 calls. The probability that at least 3 calls
are received per hour is
A. 3/6.
B. 4/7.
C. 3/7.
D. 4/6.
E. 1/6.

part each week. What is the probability that the tenth part retrieved from stock is the
first defective?
A. 0.2348
B. 0.4344
C. 0.0378
D. 0.4722
E. 0.3780

of this size is 3. What is the probability that a sheet of this size has no more than 2
imperfections?
A. 0.4232
B. 0.2510
C. 0.2240
D. 0.5689
E. 0.0034

Quiz D 8-15

of this size is 3. What is the probability that a sheet half this size (18 sq. ft.) has 2
imperfections?
A. 0.4232
B. 0.2510
C. 0.2240
D. 0.5689
E. 0.0034
Chapter 8 – Quiz D – Key
1. A
2. B
3. D
4. C
5. A
6. D
7. B
8. C
9. A
10. B

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Chapter 8: Random Variables and Probability Models – Quiz A

b. Find the standard deviation of the number of repairs per year.

2. Internet service providers (ISP) need to resolve customer problems as quickly as

Copyright © 2014 Pearson Education, Inc.

Chapter 8: Random Variables and Probability Models – Quiz A – Key

b. Find the standard deviation of the number of repairs per year.

2. Internet service providers (ISP) need to resolve customer problems as quickly as

Copyright © 2014 Pearson Education, Inc.

Copyright © 2014 Pearson Education, Inc.

Chapter 8: Random Variables and Probability Models – Quiz B

b. Find the standard deviation of the number of repairs per year.

Number of Claims Probability

a. What is the expected number of new claims filed each day?

Copyright © 2014 Pearson Education, Inc.

a. What is the probability that a sheet of this size has 2 imperfections?

Copyright © 2014 Pearson Education, Inc.

Chapter 8: Random Variables and Probability Models – Quiz B – Key

b. Find the standard deviation of the number of repairs per year.

Number of Claims Probability

a. What is the expected number of new claims filed each day?

Copyright © 2014 Pearson Education, Inc.

a. What is the probability that a sheet of this size has 2 imperfections?

Copyright © 2014 Pearson Education, Inc.

Chapter 8: Random Variables and Probability Models – Quiz C – Multiple Choice

8.3 and 8.4. Solve applications involving expected values.

Copyright © 2014 Pearson Education, Inc.

8.5. Use the appropriate probability model (Binomial).

8.5. Use the appropriate probability model (Binomial).

8.5. Use the appropriate probability model (Geometric).

8.5. Use the appropriate probability model (Geometric).

Copyright © 2014 Pearson Education, Inc.

8.5. Use the appropriate probability model (Uniform).

8.5. Use the appropriate probability model (Uniform).

8.5. Use the appropriate probability model (Poisson).

Copyright © 2014 Pearson Education, Inc.

Chapter 8 – Quiz C – Key

Copyright © 2014 Pearson Education, Inc.

Chapter 8: Random Variables and Probability Models – Quiz D – Multiple Choice

8.3 and 8.4. Solve applications involving expected values.

Copyright © 2014 Pearson Education, Inc.

8.3and 8.4. Solve applications involving expected values.

8.5. Use the appropriate probability model (Binomial).

8.5. Use the appropriate probability model (Binomial).

Copyright © 2014 Pearson Education, Inc.

8.5. Use the appropriate probability model (Uniform).

8.5. Use the appropriate probability model (Geometric).

8.5. Use the appropriate probability model (Poisson).

Copyright © 2014 Pearson Education, Inc.

8.5. Use the appropriate probability model (Poisson).

Chapter 8 – Quiz D – Key

Copyright © 2014 Pearson Education, Inc.

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