Business Statistics Australia New Zealand 7th Edition Selvanathan Test Bank

Business Statistics Australia New
Zealand 7th Edition Selvanathan Test

Bank
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Chapter 8—Continuous probability distributions
MULTIPLE CHOICE
1. Given that Z is a standard normal random variable, P(–1.23  Z  1.89) is:

A. 0.1903.
B. 0.9706.
C. 0.8907.
D. 0.8613.
ANS: D PTS: 1 DIF: Moderate TOP: Normal distribution
2. Given that Z is a standard normal variable, the value z for which P(Z  z) = 0.2580 is:
A. 0.70.
B. 0.758.
C. –0.65.
D. 0.242.
ANS: C PTS: 1 DIF: Easy TOP: Normal distribution
3. If the random variable X is exponentially distributed with parameter  = 3, then P(X  2), up to 4
decimal places, is:
A. 0.3333.
B. 0.5000.
C. 0.6667.
D. 0.0025.
ANS: D PTS: 1 DIF: Moderate TOP: Exponential distribution
4. If the random variable X is exponentially distributed with parameter  = 1.75, then P(1.5  X 
3.8), up to 4 decimal places, is:
A. 0.0711.
B. 0.0473.
C. 0.1184.
D. 0.4739.
ANS: A PTS: 1 DIF: Moderate TOP: Exponential distribution
5. If X is a normal random variable with a standard deviation of 10, then 3X has a standard deviation
equal to:
A. 10.
B. 13.
C. 30.
D. 90.
ANS: C PTS: 1 DIF: Moderate TOP: Normal distribution
6. Given that X is a normal variable, which of the following statements is (are) true?
A. The variable X + 5 is also normally distributed.
B. The variable X – 5 is also normally distributed.
C. The variable 5X is also normally distributed.
D. All of these choices are correct.
1
7. If the random variable X is exponentially distributed with parameter  = 4, then the probability
P(X  0.25), up to 4 decimal places, is:
A. 0.6321.
B. 0.3679.
C. 0.2500.
D. None of these choices are correct.
8. A standard normal distribution is a normal distribution with:

A. a mean of zero and a standard deviation of one.
B. a mean of one and a standard deviation of zero.
C. a mean usually larger than the standard deviation.
D. a mean always larger than the standard deviation.
ANS: A PTS: 1 DIF: Easy TOP: Normal distribution
9. If Z is a standard normal random variable, then P(–2.28  Z  –1.96 ) is:

A. 0.0250.
B. 0.0146.
C. −0.0146.
D. 0.0137.
10. What are the values of z that correspond to the P(–z  Z  z) equal to 0.4778?
A. ±0.2389.
B. ± 0.71.
C. ±0.64.
ANS: C PTS: 1 DIF: Difficult TOP: Normal distribution
11. If the continuous random variable X is uniformly distributed over the interval [15, 25], then the
mean of X is:
A. 40.
B. 25.
C. 20.
D. 15.
ANS: C PTS: 1 DIF: Moderate TOP: Uniform distribution
12. If the random variable X is normally distributed with a mean of 75 and a standard deviation of 8,
then P(X ≤ 75) is:
A. 0.125.
B. 0.975.
C. 0.625.
D. 0.500.
13. Given that Z is a standard normal random variable, what is the value of Z if the area to the left of Z
is 0.1949?
A. 0.51.
B. –0.51.
C. 0.86.
D. –0.86.
2
14. Given that Z is a standard normal random variable, what is the value of Z if the area to the right of
Z is 0.8212?
A. 0.92.
B. –0.05.
C. 0.05.
D. –0.92.
15. Given that Z is a standard normal random variable, P(Z > − 2.68) is:
A. 0.0037.
B. 0.5037.
C. 0.9963.
D. 0.4963.
16. Given that the random variable X is normally distributed with a mean of 20 and a standard
deviation of 7, P(28  X  30) is:
A. 2
B. 0.0507.
C. 0.8729
D. 0.9236
ANS: B PTS: 1 DIF: Moderate TOP: Normal distribution
17. Which of the following is always true for all probability density functions of continuous random
variables?
A. They are symmetrical.
B. They are bell-shaped.
C. The area under the curve is 1.0.
D. They have the same height.
ANS: C PTS: 1 DIF: Moderate TOP: Probability density
functions
18. What proportion of the data from a normal distribution is within 2 standard deviations of the
mean?
A. 0.3413.
B. 0.4772.
C. 0.6826.
D. 0.9544.
ANS: D PTS: 1 DIF: Easy TOP: Normal distribution
19. Like the normal distribution, the exponential density function f(x):
A. is bell-shaped.
B. is symmetrical.
C. approaches infinity as x approaches zero.
D. approaches zero as x approaches infinity.
20. The mean of the exponential distribution equals the mean of the Poisson distribution only when the
former distribution has a mean equal to:
A. 1.0.
3
B. 0.50.
C. 0.25.
D. any value smaller than 1.0.
21. Which of the following distributions is appropriate to measure the length of time between arrivals
at a grocery checkout counter?
A. Uniform.
B. Normal.
C. Exponential.
D. Poisson.
ANS: C PTS: 1 DIF: Moderate TOP: Exponential distribution
22. Given that Z is a standard normal random variable, the area to the left of a value z is expressed as:
A. P(Z  z).
B. P(Z  z).
C. P(0  Z  z).
D. P(Z  –z).
ANS: B PTS: 1 DIF: Easy TOP: Normal distribution
23. Which of the following distributions is not symmetrical?

A. Exponential
B. Uniform.
C. Normal.
ANS: A PTS: 1 DIF: Easy TOP: Uniform distribution,
Normal distribution
24. If the z-value for a given value x of the random variable X is z = 2.326, and the distribution of X is
normal with a mean of 50 and a standard deviation of 5, to what x-value does this z-value
correspond?
A. 11.63.
B. 61.63.
C. 63.16.
D. 16.31.
25. If the random variable X is exponentially distributed, then which of the following statements best
describes the mean of X?
A. The mean of X will be greater than the standard deviation of X.
B. The mean of X will be smaller than the standard deviation of X.
C. The mean of X will equal the standard deviation of X.
26. If Z is a standard normal random variable, the area between z = 0.0 and z =1.30 is 0.4032, while the
area between z = 0.0 and z = 1.50 is 0.4332. What is the area between z = –1.30 and z = 1.50?
A. 0.0300.
B. 0.0668.
C. 0.0968.
4
D. 0.8364.
27. Find the value of µ, if X is a normal random variable, with standard deviation 2, and 2.5% of the
values are below 1?
A. −2.92
B. 1.96
C. 4.92
28. Find the value of σ if it is known that X is normally distributed with mean 5 and 14.92% of the
values are above 8?
A. 2.14
B. 2.88
C. 3
ANS: B PTS: 1 DIF: Difficult TOP: Normal distribution
29. The expected value, E(X), of a uniform random variable X defined over the interval a  x  b , is:
A. a + b.
B. a – b.
C. (a + b)/2.
D. (a – b)/2.
30. The probability density function, f(x), for any continuous random variable X, represents:
A. all possible values that X will assume within some interval a  x  b.
B. the probability that X takes on a specific value x.
C. the area under the curve at x.
D. the height of the function at x.
ANS: D PTS: 1 DIF: Easy TOP: Probability density
functions
31. The height of the function for a uniform probability density function f(x):
A. is different for various values of the random variable X.
B. is the same for various values of the random variable X.
C. increases as the values of the random variable X increase.
ANS: B PTS: 1 DIF: Easy TOP: Uniform distribution
32. Which of the following is not true for a random variable X that is uniformly distributed over the
interval a  x  b ?
A. E(X) = (a + b)/2.
B. V(X) = (b − a) 2 /12.
C.  = (b – a)/6.
D. f ( x) = 1/ (b − a) if a  x  b.
33.The function f(x) that defines the probability distribution of a continuous random variable X is a:
5
A. binomial function.
B. normal function.
C. Poisson function.
D. probability density function.
ANS:D PTS: 1 DIF: Moderate TOP: Probability density function
34.The probability density function f(x) for a uniform random variable X defined over the interval [1, 11]
is:
A. any value between 1 and 11.
B. 0.100.
C. 0.091.
D. above 11.
ANS: B PTS: 1 DIF: Moderate TOP: Uniform distribution
35. If the random variable X is uniformly distributed between 40 and 60, then P(35  X  45) is:
A. 1.0.
B. 0.5.
C. 0.25.
D. 0.0.
36. Which of the following is true for a normal distribution?

A. It is unimodal.
B. It is symmetrical.
C. It has a bell shape.
37. Which of the following distributions is considered the cornerstone distribution of statistical
inference?
A. Binomial distribution.
B. Normal distribution.
C. Poisson distribution.
D. Uniform distribution.
ANS: B PTS: 1 DIF: Easy TOP: Normal distribution
38. The probability density function f(x) of a random variable X that is normally distributed is
completely determined once the:
A. mean and median of X are specified.
B. median and mode of X are specified.
C. mean and mode of X are specified.
D. mean and variance of X are specified.
39. The probability density function f(x) of a random variable X that is uniformly distributed between a
and b is:
A. 1/(b – a).
B. 1/(a – b).
C. (b – a)/2.
D. (a – b)/2.
ANS: A PTS: 1 DIF: Moderate TOP: Uniform distribution
6
40. Which of the following is a characteristic of a standard normal distribution?
A. It is a symmetrical distribution.
B. The mean is always zero.
C. The mean, median and mode are all equal.
41. Given that Z is a standard normal variable, the variance of Z:

A. is always greater than 2.0.
B. is always greater than 1.0.
C. is always equal to 1.0.
D. cannot assume a specific value.
ANS: C PTS: 1 DIF: Easy TOP: Normal distribution
42. Given that Z is a standard normal random variable, a positive z value means that:
A. the value z is to the left of the mean.
B. the value z is to the right of the median.
C. the z value is to the right of the mean.
D. both B and C are correct.
43. Given that Z is a standard normal random variable, the mean of Z is:
A. smaller than the median.
B. larger than the mode.
C. always equal to zero.
D. always smaller than zero.
44. Which of the following is not true for an exponential distribution with parameter ?
A.  = 1/ 
B.  = 1 / 
C. The distribution is completely determined once the value of  is known.
D. The distribution is a two-parameter distribution, since the mean and standard deviation are
equal.
45. A smaller standard deviation of a normal distribution indicates that the distribution becomes:
A. more skewed to the left.
B. flatter and wider.
C. narrower and more peaked.
D. symmetrical.
ANS: C PTS: 1 DIF: Difficult TOP: Normal distribution
46. Given that Z is a standard normal variable, the value z for which P(Z  z) = 0.6736 is:
A. 0.1736.
B. 0.45.
C. –0.1736.
D. –0.45.
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47. If the mean of an exponential distribution is 4, then the value of the parameter  is:
A. 4.
B. 0.25.
C. 2.
D. 0.5.
ANS: B PTS: 1 DIF: Moderate TOP: Exponential distribution
48. Given that X is a binomial random variable, the binomial probability P(X  x) is approximated by
the area under a normal curve to the right of:
A. x – 0.5.
B. x + 0.5.
C. x – 1.
D. x + 1.
ANS: A PTS: 1 DIF: Moderate TOP: Normal distribution
49. Given a binomial distribution with n trials and probability p of a success on any trial, a
conventional rule of thumb is that the normal distribution will provide an adequate approximation
of the binomial distribution if:
A. np  5 and n(1–p)  5.
B. np  5 and n(1–p)  5.
C. np  5 and n(1–p)  5.
D. np  5 and n(1–p)  5.
50. Suppose that the probability p of a success on any trial of a binomial distribution equals 0.80. For
which value of the number of trials, n, would the normal distribution provide a good approximation
to the binomial distribution?
A. 25.
B. 20.
C. 10.
D. 15.
51. Given that X is a binomial random variable, the binomial probability P(X  x) is approximated by
the area under a normal curve to the left of:
A. x.
B. –x.
C. x + 0.5.
D. x – 0.5.
TRUE/FALSE
1. A continuous probability distribution represents a random variable having an infinite number of

outcomes that may assume any number of values within an interval.
ANS: T PTS: 1 DIF: Easy TOP: Probability density

functions
2. If we standardise the normal curve, we express the original x values in terms of their number of
standard deviations away from the mean.
8
ANS: T PTS: 1 DIF: Easy TOP: Normal distribution
3. In the exponential distribution, the value of x can be any of an infinite number of values in the
given range.
ANS: F PTS: 1 DIF: Easy TOP: Exponential distribution
4. In the normal distribution, the mean, median and mode are all at the same position on the
horizontal axis since the distribution is symmetric.
5. In the normal distribution, the curve is asymptotic but never intercepts the horizontal axis either to
the left or right.
ANS: T PTS: 1 DIF: Moderate TOP: Normal distribution
6. In the normal distribution, the flatter the curve, the larger the standard deviation
7. In the normal distribution, the total area under the curve is equal to one.
8. In the normal distribution, the curve is skewed.
ANS: F PTS: 1 DIF: Esay TOP: Normal distribution
9. Continuous probability distributions describe probabilities associated with random variables that
are able to assume any of an infinite number of values.
10. A random variable X is standardised when each value of X has the mean of X subtracted from it,
and the difference is divided by the standard deviation of X.
11. Using the standard normal curve, the area between z = 0 and z = 3.50 is about 0.50.
12. Using the standard normal curve, the probability or area between z = –1.28 and z = 1.28 is 0.1003
ANS: F PTS: 1 DIF: Moderate TOP: Normal distribution
13. Let z1 be a z-score that is unknown but identifiable by position and area. If the area to the right of z1
is 0.7291, the value of z1 is –0.61.
14. Let z1 be a z-score that is unknown but identifiable by position and area. If the symmetrical area
between –z1 and + z1 is 0.9544, the value of z1 is 2.0.
9
15. Using the standard normal curve, the z-score representing the 10th percentile is 1.28.
18. The mean and standard deviation of a normally distributed random variable that has been
standardised are one and zero, respectively.
19. The mean and standard deviation of an exponential random variable cannot equal to each other.
ANS: F PTS: 1 DIF: Moderate TOP: Exponential distribution
20. A random variable X is normally distributed with a mean of 150 and a variance of 25. Given that
X = 120, its corresponding z-score is 6.0.
21. A random variable X is normally distributed with a mean of 250 and a standard deviation of 50.
Given that X = 175, its corresponding z-score is –1.50.
22. For a normal curve, if the mean is 25 minutes and the standard deviation is 5 minutes, the area to
the right of 25 minutes is 0.50.
23. For a normal curve, if the mean is 20 minutes and the standard deviation is 5 minutes, the area to
the right of 13 minutes is 0.9192.
24. If the random variable X is exponentially distributed with  = 2 parameter, then the variance of the
distribution is 0.5.
ANS: F PTS: 1 DIF: Moderate TOP: Exponential distribution
25. The mean and the standard deviation of an exponential distribution are equal to each other.
ANS: T PTS: 1 DIF: Moderate TOP: Exponential distribution
26. If the random variable X is exponentially distributed and the parameter of the distribution  = 4,
then P(X  0.25) = 0.3679.
ANS: F PTS: 1 DIF: Difficult TOP: Exponential distribution
27. Given that z is a standard normal random variable, a negative value of z indicates that the standard
deviation of z is negative.
10
ANS: F PTS: 1 DIF: Easy TOP: Normal distribution
28. The mean of any normal distribution is always zero.
ANS: F PTS: 1 DIF: Easy TOP: Normal distribution
29. The exponential distribution is suitable to model the length of time that elapses before the first
telephone call is received by a switchboard.
ANS: T PTS: 1 DIF: Moderate TOP: Exponential distribution
30. The values of zA are the 100(1 – A)th percentiles of a standard normal random variable.
31. In the standard normal distribution, z0.05 = 1.645 means that there is a 5% chance that the standard
normal random variable Z assumes a value above 1.645.
32. The normal approximation to the binomial distribution works best when the number of trials is
large, and when the binomial distribution is symmetrical (like the normal).
SHORT ANSWER
1. A certain brand of flood lamps has a lifetime that is normally distributed with a mean of 3750
hours and a standard deviation of 300 hours.
a. What proportion of these lamps will last for more than 4000 hours?
b. What lifetime should the manufacturer advertise for these lamps in order that only 2% of the
lamps will burn out before the advertised lifetime?
ANS:
a. 0.2033.
b. 3035.
PTS: 1 DIF: Moderate TOP: Normal distribution
2. If X is a normal random variable with a mean of 78 and a standard deviation of 5, find the
following probabilities:
a. P(X ≤ 87).
b. P(X ≥ 91).
c. P(X =).
ANS:
a. 0.9641.
b. 0.0047.
c. 0.
3. A continuous random variable X has the probability density function f(x) = (4 – x)/8, 0  x  4.
Find the following probabilities:
a. P(X  1).
11
b. P(X  2).
c. P(1  X  2).
d. P(X = 3).
ANS:
a. 0.4375.
b. 0.25.
c. 0.3125.
d. 0.0.
4. If the random variable X is normally distributed with a mean of 70 and a standard deviation of 10,
find the following values of the distribution of X.
a. First quartile.
b. Third quartile.
ANS:
a. 63.3.
b. 76.7.
5. Researchers studying the effects of a new diet found that the weight loss over a one-month period
by those on the diet was normally distributed with a mean of 7 kg and a standard deviation of 2.5
kg.
a. What proportion of the dieters lost more than 10 kg?
b. What proportion of the dieters gained weight?
c. If a dieter is selected at random, what is the probability that the dieter lost at most 5 kg?
ANS:
a. 0.1151.
b. 0.0026.
c. 0.2119.
6. Let X be an exponential random variable with  = 2.50. Find the following probabilities.
a. P(X  1.5).
b. P(X  1).
c. P(0.25  X  0.78).
d. P(X = 0.41).
ANS:
a. 0.0235.
b. 0.9179.
c. 0.3930.
d. 0.0.
PTS: 1 DIF: Moderate TOP: Exponential distribution
7. If Z is a standard normal random variable, find the value z for which:

a. P(0  Z  z) = 0.35.
b. P(–z  Z  z) = 0.142.
c. P(–z  Z  0) = 0.441.
12
ANS:
a. 1.04.
b. 0.18.
c. –1.56.
8. Let X be a normally distributed random variable with a mean of 12 and a standard deviation of 1.5.
What proportions of the values of X are:
a. less than 14?
b. more than 8?
c. between 10 and 13?
ANS:
a. 0.9082.
b. 0.9962.
c. 0.6568.
9. The length of time patients must wait to see a doctor at an emergency room in a large hospital is
uniformly distributed between 40 minutes and 3 hours.
a. What is the probability that a patient would have to wait between 50 minutes and 2 hours?
b. What is the probability that a patient would have to wait exactly 1 hour?
c. Find the expected waiting time.
d. Find the standard deviation of the waiting time.
ANS:
a. 0.50.
b. 0.0.
c. 110 minutes.
d. 40.41 minutes.
PTS: 1 DIF: Moderate TOP: Uniform distribution
a. the area to the left of 0.0336.
b. the area to the right of z is 0.0075.
c. the area to the left of z is 0.0.9909.
ANS:
a. −1.83
b. 2.43
c. 2.36
11. If X is a normal random variable with a mean of 45 and a standard deviation of 8, find the
following probabilities:
a. P(X  50).
b. P(X  32).
c. P(37  X  48).
d. P(50  X  60).
e. P(X = 45).
ANS:
13
a. 0.2643.
b. 0.0516.
c. 0.4893.
d. 0.2342.
e. 0.0.
12. If Z is a standard normal random variable, find the value of z that has the following probabilities:
a. P(Z ≤ z) = 0.3228.
b. P(Z ≥ z) = 0.8289.
ANS:
a. –0.46.
b. –0.95
13. A used car salesman in a small town states that, on the average, it takes him 5 days to sell a car.
Assume that the probability distribution of the length of time between sales is exponentially
distributed.
a. What is the probability that he will have to wait at least 8 days before making another sale?
b. What is the probability that he will have to wait between 6 and 10 days before making another
sale?
ANS:
a. 0.2019.
b. 0.1659.
14. The time it takes a technician to fix a computer problem is exponentially distributed, with a mean
of 15 minutes.
a. What is the probability density function for the time it takes a technician to fix a computer
problem?
b. What is the probability that it will take a technician less than 10 minutes to fix a computer
problem?
c. What is the variance of the time it takes a technician to fix a computer problem?
d. What is the probability that it will take a technician between 10 to 15 minutes to fix a computer
problem?
ANS:
a. f(x) = (1/15)e–x/15, x  0.
b. 0.4866.
c. 225.
d. 0.1455.
15. The time required to complete a particular assembly operation is uniformly distributed between 12
and 18 minutes.
a. What is the probability density function for this uniform distribution?
b. What is the probability that the assembly operation will require more than 16 minutes to
complete?
c. Find the expected value and standard deviation for the assembly time.
ANS:
a. f(x) = 1/6, 12  x  18.
14
b. P(16 X 18) = (18-16)(1/6)=1/3.
c. E(X) = 15 minutes,  = 1.732 minutes.
16. If the random variable X is uniformly distributed over the interval 10  x  50, find the following
probabilities.
a. P(X  30).
b. P(X  25).
c. P(18  X  35).
d. P(X = 40).
ANS:
a. 0.50.
b. 0.375.
c. 0.425.
d. 0.0.
17. If Z is a standard normal random variable, find the following probabilities.

a. P(Z  2.33).
b. P(Z  1.65).
c. P(–0.58  Z  1.58).
d. P(Z  –2.27).
ANS:
a. 0.9901.
b. 0.0495.
c. 0.6619.
d. 0.0116.
18. The lifetime of a light bulb is exponentially distributed with  = 0.001.

a. What are the mean and standard deviation of the light bulb’s lifetime?
b. Find the probability that a light bulb will last between 110 and 150 hours.
c. Find the probability that a light bulb will last for more than 125 hours.
ANS:
a. 1000.
b. 0.0351.
c. 0.8825.
19. The scores of high-school students sitting a mathematics exam were normally distributed, with a
mean of 86 and a standard deviation of 4.
a. What is the probability that a randomly selected student will have a score of 80 or less?
b. If there were 97 680 students with scores higher than 91, how many students took the test?
ANS:
a. 0.0668
b. 925 000.
15
20. A bank has determined that the monthly balances of the saving accounts of its customers are
normally distributed, with an average balance of $1200 and a standard deviation of $250. What
proportions of the customers have monthly balances:
a. less than $1000?
b. more than $1125?
c. between $950 and $1075?
ANS:
a. 0.2119.
b. 0.6179.
c. 0.1498.
21. The time it takes a student to complete a 3-hour business statistics sample exam paper is uniformly
distributed between 150 and 230 minutes.
b. Find the probability that a student will take no more than 180 minutes to complete the sample
exam paper.
c. Find the probability that a student will take no less than 205 minutes to complete the sample
exam paper.
d. What is the expected amount of time it takes a student to complete the sample exam paper?
e. What is the standard deviation for the amount of time it takes a student to complete the sample
exam paper?
ANS:
a. f(x) = 1/80, 150  x  230.
b. 0.3750.
c. 0.3125.
d. 190 minutes.
e. 23.0939 minutes.
22. A continuous random variable X has the probability density function f(x) = –0.02x + 0.2, 0  x 
10. Find the following probabilities.
a. P(X  7).
b. P(X  8).
c. P(X = 9).
b
Hint: P(a  x  b) =  f ( x)dx
a
ANS:
a. 0.91.
b. 0.04.
c. 0.00.
PTS: 1 DIF: Moderate TOP: Probability density functions
a. P(0  Z  z) = 0.276.
b. P(Z  z) = 0.341.
c. P(Z  z) = 0.819.
16
d. P(–z  Z  z) = 0.785.
e. P(Z  z) = 0.9279.
ANS:
a. 0.76.
b. 0.41.
c. –0.91.
d. 1.24.
e. 1.46.
24. A supermarket receives a delivery each morning at a time that varies uniformly between 5:00 and
7:00am.
a. Find the probability that the delivery on a given morning will occur between 5:30 and 5:45am.
b. What is the expected time of delivery?
c. Determine the standard deviation of the delivery time.
d. Find the probability that the time of delivery will be within half a standard deviation of the
expected time.
ANS:
a. 0.125.
b.  = 6 am.
c.   0.5774 hours.
d. 0.2887.
25. A continuous random variable X has the probability density function f(x) = 2e-2x, x  0.
a. Find the mean and standard deviation of X.
b. What is the probability that X is between 1 and 3?
c. What is the probability that X is at most 2?
ANS:
a. X is an exponential random variable with  = 2, therefore  =  = 0.5.
b. 0.1329.
c. 0.9817.
26. The recent average starting salary for new college graduates in computer information systems is
$47 500. Assume that salaries are normally distributed, with a standard deviation of $4500.
a. What is the probability of a new graduate receiving a salary between $45 000 and $50 000?
b. What is the probability of a new graduate getting a starting salary in excess of $55 000?
c. What percentage of starting salaries are no more than $42 250?
d. What is the cut-off for the bottom 5% of the salaries?
e. What is the cut-off for the top 3% of the salaries?
ANS:
a. 0.4246.
b. 0.0475.
c. 12.10%.
d. $40 097.50.
e. $55 960.
PTS: 1 DIF: Difficult TOP: Normal distribution
17
27. In a shopping centre, the waiting time for an elevator is found to be uniformly distributed between
1 and 5 minutes.
b. What is the probability of waiting no more than 3 minutes?
c. What is the probability that the elevator arrives in the first 30 seconds?
d. What is the probability of a waiting time between 2 and 3 minutes?
e. What is the expected waiting time?
ANS:
a. f(x) = 1/4, 1  x  5.
b. 0.50.
c. 0.125.
d. 0.25.
e. 3 minutes.
PTS: 1 DIF: Difficult TOP: Uniform distribution
28. The active lifetime of laptop computers is normally distributed, with a mean of 36 months and a
standard deviation of 6 months.
a. What is the probability that a randomly selected laptop will last less than 3.5 years?
b. What proportion of the laptops will last more than 32 months?
c. What proportion of the laptops will last between 2 and 4 years?
ANS:
a. 0.8413.
b. 0.7475.
c. 0.9544.
29. The weights of cans of soup produced by a company are normally distributed, with a mean of 150
g and a standard deviation of 5 g.
a. What is the probability that a can of soup selected randomly from the entire production will
weigh less than 143 g?
b. Determine the minimum weight of the heaviest 5% of all cans of soup produced.
c. If 28 390 of the cans of soup of the entire production weigh at least 157.5 g, how many cans of
soup have been produced?
ANS:
a. 0.0808
b. 158.225 ounces.
c. 425 000.
30. Consider a binomial random variable X with n = 300 and p = 0.02. Approximate the values of the
following probabilities.
a. P(X = 4).
b. P(X  5).
c. P(X  8).
ANS:
a. 0.1161.
b. 0.7324.
c. 0.8485.
18
31. Let X be a binomial random variable with n = 25 and p = 0.6. Approximate the following
probabilities, using the normal distribution.
a. P(X  20).
b. P(X  15).
c. P(X = 10).
ANS:
a. 0.0329.
b. 0.5793.
c. 0.0207.
32. Suppose it is known that 60% of students at a particular university are smokers. A sample of 500
students from the university is selected at random. Approximate the probability that less than 280
of these students are smokers.
ANS:
0.0336.
33. Let X be a binomial random variable with n = 100 and p = 0.7. Approximate the following
probabilities, using the normal distribution.
a. P(X = 75).
b. P(X  70).
c. P(X  60).
ANS:
a. 0.0484.
b. 0.5438.
c. 0.9890.
34. A fair coin is tossed 500 times. Calculate the probability that the number of tails observed is
between 240 and 270 (inclusive).
ANS:
0.7766.
35. The publisher of a daily newspaper claims that 90% of its subscribers are under the age of 30.
Suppose that a sample of 300 subscribers is selected at random. Assuming the claim is correct,
calculate the probability of finding at least 260 subscribers in the sample under the age of 30.
ANS:
0.9729.
19

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Business Statistics Australia New Zealand 7th Edition Selvanathan Test Bank

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Business Statistics Australia New

Zealand 7th Edition Selvanathan Test

1. Given that Z is a standard normal random variable, P(–1.23  Z  1.89) is:

8. A standard normal distribution is a normal distribution with:

9. If Z is a standard normal random variable, then P(–2.28  Z  –1.96 ) is:

23. Which of the following distributions is not symmetrical?

ANS: C PTS: 1 DIF: Moderate TOP: Uniform distribution

36. Which of the following is true for a normal distribution?

41. Given that Z is a standard normal variable, the variance of Z:

1. A continuous probability distribution represents a random variable having an infinite number of

ANS: T PTS: 1 DIF: Easy TOP: Probability density

ANS: F PTS: 1 DIF: Easy TOP: Exponential distribution

ANS: T PTS: 1 DIF: Easy TOP: Normal distribution

ANS: T PTS: 1 DIF: Moderate TOP: Normal distribution

ANS: T PTS: 1 DIF: Moderate TOP: Normal distribution

ANS: T PTS: 1 DIF: Easy TOP: Normal distribution

8. In the normal distribution, the curve is skewed.

ANS: F PTS: 1 DIF: Esay TOP: Normal distribution

ANS: T PTS: 1 DIF: Easy TOP: Normal distribution

ANS: T PTS: 1 DIF: Moderate TOP: Normal distribution

ANS: F PTS: 1 DIF: Moderate TOP: Normal distribution

ANS: T PTS: 1 DIF: Moderate TOP: Normal distribution

ANS: T PTS: 1 DIF: Moderate TOP: Normal distribution

ANS: F PTS: 1 DIF: Moderate TOP: Normal distribution

ANS: F PTS: 1 DIF: Moderate TOP: Normal distribution

ANS: T PTS: 1 DIF: Moderate TOP: Normal distribution

ANS: F PTS: 1 DIF: Moderate TOP: Normal distribution

ANS: F PTS: 1 DIF: Moderate TOP: Exponential distribution

ANS: F PTS: 1 DIF: Moderate TOP: Normal distribution

ANS: T PTS: 1 DIF: Moderate TOP: Normal distribution

ANS: T PTS: 1 DIF: Moderate TOP: Normal distribution

ANS: T PTS: 1 DIF: Moderate TOP: Normal distribution

ANS: F PTS: 1 DIF: Moderate TOP: Exponential distribution

ANS: T PTS: 1 DIF: Moderate TOP: Exponential distribution

ANS: F PTS: 1 DIF: Difficult TOP: Exponential distribution

28. The mean of any normal distribution is always zero.

ANS: F PTS: 1 DIF: Easy TOP: Normal distribution

ANS: T PTS: 1 DIF: Moderate TOP: Exponential distribution

ANS: T PTS: 1 DIF: Moderate TOP: Normal distribution

ANS: T PTS: 1 DIF: Moderate TOP: Normal distribution

ANS: T PTS: 1 DIF: Moderate TOP: Normal distribution

PTS: 1 DIF: Moderate TOP: Normal distribution

PTS: 1 DIF: Moderate TOP: Normal distribution

PTS: 1 DIF: Moderate TOP: Normal distribution

PTS: 1 DIF: Moderate TOP: Normal distribution

PTS: 1 DIF: Moderate TOP: Normal distribution

PTS: 1 DIF: Moderate TOP: Exponential distribution

7. If Z is a standard normal random variable, find the value z for which:

PTS: 1 DIF: Moderate TOP: Normal distribution

PTS: 1 DIF: Moderate TOP: Normal distribution

PTS: 1 DIF: Moderate TOP: Uniform distribution

PTS: 1 DIF: Moderate TOP: Normal distribution

PTS: 1 DIF: Moderate TOP: Normal distribution

PTS: 1 DIF: Moderate TOP: Exponential distribution

PTS: 1 DIF: Moderate TOP: Exponential distribution

PTS: 1 DIF: Moderate TOP: Uniform distribution

PTS: 1 DIF: Moderate TOP: Uniform distribution

17. If Z is a standard normal random variable, find the following probabilities.

PTS: 1 DIF: Moderate TOP: Normal distribution

18. The lifetime of a light bulb is exponentially distributed with  = 0.001.

PTS: 1 DIF: Moderate TOP: Exponential distribution

PTS: 1 DIF: Moderate TOP: Normal distribution

PTS: 1 DIF: Moderate TOP: Normal distribution

PTS: 1 DIF: Moderate TOP: Uniform distribution