Statistics For Management and Economics Abbreviated 10th Edition Gerald Keller Test Bank

Statistics for Management and
Economics Abbreviated 10th Edition

Gerald Keller Test Bank
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CHAPTER 8: CONTINUOUS PROBABILITY DISTRIBUTIONS
TRUE/FALSE
1. Since there is an infinite number of values a continuous random variable can assume, the probability of
each individual value is virtually 0.
ANS: T PTS: 1 DIF: Easy OBJ: SFME.KELL.15.08.01

NAT: BUSPROG.SFME.KELL.15.03 STA: DISC.SFME.KELL.15.04
KEY: Bloom's: Comprehension
2. A continuous probability distribution represents a random variable having an infinite number of

outcomes which may assume any number of values within an interval.

3. Continuous probability distributions describe probabilities associated with random variables that are
able to assume any finite number of values along an interval.
ANS: F PTS: 1 DIF: Easy OBJ: SFME.KELL.15.08.01

4. A continuous random variable X has a uniform distribution between 10 and 20 (inclusive), then the
probability that X falls between 12 and 15 is 0.30.

KEY: Bloom's: Application
5. A continuous random variable is one that can assume an uncountable number of values.

KEY: Bloom's: Knowledge
6. A continuous random variable X has a uniform distribution between 5 and 15 (inclusive), then the
probability that X falls between 10 and 20 is 1.0.

7. A continuous random variable X has a uniform distribution between 5 and 25 (inclusive), then P(X =
15) = 0.05.

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in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
8. We distinguish between discrete and continuous random variables by noting whether the number of
possible values is countable or uncountable.

9. In practice, we frequently use a continuous distribution to approximate a discrete one when the number
of values the variable can assume is countable but large.

10. Let X represent weekly income expressed in dollars. Since there is no set upper limit, we cannot
identify (and thus cannot count) all the possible values. Consequently, weekly income is regarded as a
continuous random variable.

11. To be a legitimate probability density function, all possible values of f(x) must be non-negative.

12. To be a legitimate probability density function, all possible values of f(x) must lie between 0 and 1
(inclusive).

13. The sum of all values of f(x) over the range of [a, b] must equal one.

14. A probability density function shows the probability for each value of X.

15. If X is a continuous random variable on the interval [0, 10], then P(X > 5) = P(X  5).

16. If X is a continuous random variable on the interval [0, 10], then P(X = 5) = f(5) = 1/10.

17. If a point y lies outside the range of the possible values of a random variable X, then f(y) must equal
zero.

MULTIPLE CHOICE
1. Which of the following is always true for all probability density functions of continuous random
variables?
a. The probability at any single point is zero.
b. They contain an uncountable number of possible values.
c. The total area under the density function f(x) equals 1.
d. All of these choices are true.
ANS: D PTS: 1 DIF: Easy OBJ: SFME.KELL.15.08.01
2. 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 height of the density function at x.
d. None of these choices.
ANS: C PTS: 1 DIF: Easy OBJ: SFME.KELL.15.08.01
3. Which of the following represents a difference between continuous and discrete random variables?
a. Continuous random variables assume an uncountable number of values, and discrete
random variables do not.
b. The probability for any individual value of a continuous random variable is zero, but for
discrete random variables it is not.
c. Probability for continuous random variables means finding the area under a curve, while
for discrete random variables it means summing individual probabilities.
4. Suppose f(x) = 0.25. What range of possible values can X take on and still have the density function be
legitimate?
a. [0, 4] c. [−2, +2]
b. [4, 8] d. All of these choices are true.
5. What is the shape of the probability density function for a uniform random variable on the interval
[a, b]?
a. A rectangle whose X values go from a to b.
b. A straight line whose height is 1/(b − a) over the range [a, b].
c. A continuous probability density function with the same value of f(x) from a to b.
6. Which of the following is true about f(x) when X has a uniform distribution over the interval [a, b]?
a. The values of f(x) are different for various values of the random variable X.
b. f(x) equals one for each possible value of X.
c. f(x) equals one divided by the length of the interval from a to b.
7. Suppose f(x) = 1/4 over the range a  x  b, and suppose P(X > 4) = 1/2. What are the values for a and
b?
a. 0 and 4
b. 2 and 6
c. Can be any range of x values whose length (b − a) equals 4.
d. Cannot answer with the information given.
ANS: B PTS: 1 DIF: Easy OBJ: SFME.KELL.15.08.01
8. The probability density function f(x) for a uniform random variable X defined over the interval [2, 10]
is
a. 0.20 c. 4
b. 8 d. None of these choices.
9. If the random variable X has a uniform distribution between 40 and 50, then P(35  X  45) is:
a. 1.0 c. 0.1
b. 0.5 d. undefined.
ANS: B PTS: 1 DIF: Easy OBJ: SFME.KELL.15.08.01
10. The probability density function f(x) of a random variable X that has a uniform distribution between a
and b is
a. (b + a)/2 c. (a − b)/2
b. 1/b − 1/a d. None of these choices.
11. Which of the following does not represent a continuous uniform random variable?
a. f(x) = 1/2 for x between −1 and 1, inclusive.
b. f(x) = 10 for x between 0 and 1/10, inclusive.
c. f(x) = 1/3 for x = 4, 5, 6.
d. None of these choices represents a continuous uniform random variable.
COMPLETION
1. A(n) ____________________ random variable is one that assumes an uncountable number of possible
values.
ANS: continuous
PTS: 1 DIF: Easy OBJ: SFME.KELL.15.08.01

2. For a continuous random variable, the probability for each individual value of X is
____________________.
ANS:
zero
0

3. Probability for continuous random variables is found by finding the ____________________ under a
curve.
ANS: area

4. A(n) ____________________ random variable has a density function that looks like a rectangle and
you can use areas of a rectangle to find probabilities for it.
ANS: uniform
5. Suppose X is a continuous random variable for X between a and b. Then its probability
____________________ function must non-negative for all values of X between a and b.
ANS: density

6. The total area under f(x) for a continuous random variable must equal ____________________.
ANS:
1
one

7. The probability density function of a uniform random variable on the interval [0, 5] must be
____________________ for 0  x  5.
ANS:
1/5
0.20

8. To find the probability for a uniform random variable you take the ____________________ times the
____________________ of its corresponding rectangle.
ANS:
base; height
height; base
length; width
width; length

9. You can use a continuous random variable to ____________________ a discrete random variable that
takes on a countable, but very large, number of possible values.
ANS: approximate
SHORT ANSWER
1. A continuous random variable X has the following probability density function:

f(x) = 1/4, 0  x  4
Find the following probabilities:
a. P(X  1)
b. P(X  2)
c. P(1  X  2)
d. P(X = 3)
ANS:
a. 0.25
b. 0.50
c. 0.25
d. 0

Waiting Time
The length of time patients must wait to see a doctor at an emergency room in a large hospital has a
uniform distribution between 40 minutes and 3 hours.
2. {Waiting Time Narrative} What is the probability density function for this uniform distribution?
ANS:
f(x) = 1/140, 40  x  180 (minutes)

3. {Waiting Time Narrative} What is the probability that a patient would have to wait between one and
two hours?
ANS:
0.43

4. {Waiting Time Narrative} What is the probability that a patient would have to wait exactly one hour?
ANS:
0

5. {Waiting Time Narrative} What is the probability that a patient would have to wait no more than one
hour?
ANS:
0.143

6. The time required to complete a particular assembly operation has a uniform distribution between 25
and 50 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 40 minutes to
complete?
c. Suppose more time was allowed to complete the operation, and the values of X were
extended to the range from 25 to 60 minutes. What would f(x) be in this case?
ANS:
a. f(x) = 1/25, 25  x  50
b. 0.40
c. f(x) = 1/35, 25  x  60

7. Suppose f(x) equals 1/50 on the interval [0, 50].
a. What is the distribution of X?

b. What does the graph of f(x) look like?
c. Find P(X  25)
d. Find P(X  25)
e. Find P(X = 25)
f. Find P(0 < X < 3)
g. Find P(−3 < X < 0)
h. Find P(0 < X < 50)
ANS:
a. X has a uniform distribution on the interval [0, 50].

b. f(x) forms a rectangle of height 1/50 from x = 0 to x = 50.
c. 0.50
d. 0.50
e. 0
f. 0.06
g. 0.06
h. 1.00

Electronics Test
The time it takes a student to finish a electronics test has a uniform distribution between 50 and 70
minutes.
8. {Electronics Test Narrative} What is the probability density function for this uniform distribution?
ANS:
f(x) = 1/20, 50  x  70

9. {Electronics Test Narrative} Find the probability that a student will take more than 60 minutes to
finish the test.
ANS:
0.50

10. {Electronics Test Narrative} Find the probability that a student will take no less than 55 minutes to
finish the test.
ANS:
0.75

11. {Electronics Test Narrative} Find the probability that a student will take exactly one hour to finish the
test.
ANS:
0

12. {Electronics Test Narrative} What is the median amount of time it takes a student to finish the test?
ANS:
60 minutes

13. {Electronics Test Narrative} What is the mean amount of time it takes a student to finish the test?
ANS:
60 minutes

Subway Waiting Time
At a subway station the waiting time for a subway is found to be uniformly distributed between 1 and
5 minutes.
14. {Subway Waiting Time Narrative} What is the probability density function for this uniform
distribution?
ANS:
f(x) = 1/4, 1  x  5

15. {Subway Waiting Time Narrative} What is the probability of waiting no more than 3 minutes?
ANS:
0.50

16. {Subway Waiting Time Narrative} What is the probability that the subway arrives in the first minute
and a half?
ANS:
0.125

17. {Subway Waiting Time Narrative} What is the median waiting time for this subway?
ANS:
3 minutes

18. A national standardized testing company can tell you your relative standing on an exam without
divulging the mean or the standard deviation of the exam scores.
ANS:
T

19. If your golf score is 3 standard deviations below the mean, its corresponding value on the Z
distribution is −3.
ANS:
T

20. If we standardize the normal curve, we express the original X values in terms of their number of
standard deviations away from the mean.
ANS:
T

21. A normal distribution is symmetric; therefore the probability of being below the mean is 0.50 and the
probability of being above the mean is 0.50.
ANS:
T

22. A random variable X is standardized by subtracting the mean and dividing by the variance.
ANS:
F
23. A random variable X has a normal distribution with mean 132 and variance 36. If x = 120, its
corresponding value of Z is 2.0.
ANS:
F

24. A random variable X has a normal distribution with a mean of 250 and a standard deviation of 50.
Given that X = 175, its corresponding value of Z is −1.50.
ANS:
T

25. Given that Z is a standard normal random variable, a negative value of Z indicates that the standard
deviation of Z is negative.
ANS:
F

26. In the standard normal distribution, z0.05 = 1.645 means that 5% of all values of z are below 1.645 and
95% are above it.
ANS:
F

27. The probability that a standard normal random variable Z is less than −3.5 is approximately 0.
ANS:
T

28. If the value of Z is z = 99, that means you are at the 99th percentile on the Z distribution.
ANS:
F

29. The 10th percentile of a Z distribution has 10% of the Z-values lying above it.
ANS:
F

30. The probability that Z is less than −2 is the same as one minus the probability that Z is greater than +2.
ANS:
F

31. Suppose X has a normal distribution with mean 70 and standard deviation 5. The 50th percentile of X
is 70.
ANS:
T

32. Which of the following is not a characteristic for a normal distribution?

a. It is symmetrical.
b. The mean is always zero.
c. The mean, median, and mode are all equal.
d. It is a bell-shaped distribution.
ANS:
B

33. If X has a normal distribution with mean 60 and standard deviation 6, which value of X corresponds
with the value z = 1.96?
a. x = 71.76
b. x = 67.96
c. x = 61.96
d. x = 48.24
ANS:
A

34. 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 always larger than the standard deviation.
ANS:
A

35. What proportion of the data from a normal distribution is within two standard deviations from the
mean?
a. 0.3413
b. 0.4772
c. 0.6826
d. 0.9544
ANS:
D

36. 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

37. 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

38. Given that Z is a standard normal random variable, a negative value (z) on its distribution would
indicate:
a. z is to the left of the mean.
b. the standard deviation of this Z distribution is negative.
c. the area between zero and the value z is negative.
ANS:
A

39. A larger standard deviation of a normal distribution indicates that the distribution becomes:
a. narrower and more peaked.
b. flatter and wider.
c. more skewed to the right.
d. more skewed to the left.
ANS:
B

40. In its standardized form, the normal distribution:

a. has a mean of 0 and a standard deviation of 1.
b. has a mean of 1 and a variance of 0.
c. has an area equal to 0.5.
d. cannot be used to approximate discrete probability distributions.
ANS:
A

41. Most values of a standard normal distribution lie between:

a. 0 and 1
b. −3 and 3
c. 0 and 3
d. minus infinity and plus infinity
ANS:
B

42. Stacy took a math test whose mean was 70 and standard deviation was 5. The total points possible was
100. Stacey's results were reported to be at the 95th percentile. What was Stacey's actual exam score,
rounded to the nearest whole number?
a. 95
b. 78
c. 75
d. 62
ANS:
B

43. Tanner took a statistics test whose mean was 80 and standard deviation was 5. The total points
possible was 100. Tanner's score was 2 standard deviations below the mean. What was Tanner's score,
rounded to the nearest whole number?
a. 78
b. 70
c. 90
ANS:
B

44. Lamont took a psychology exam whose mean was 70 with standard deviation 5. He also took a
calculus exam whose mean was 80 with standard deviation 10. He scored 85 on both exams. On which
exam did he do better compared to the other students who took the exam?
a. He did better on the psychology exam, comparatively speaking.
b. He did better on the calculus exam, comparatively speaking.
c. He did the same on both exams, relatively speaking.
d. Cannot tell without more information.
ANS:
A

45. Suppose Lamont's exam score was at the 80th percentile on an exam whose mean was 90. What was
Lamont's exam score?
a. 76.81
b. 72.00
c. 80.00
d. Cannot tell without more information.
ANS:
D

46. Suppose X has a normal distribution with mean 40 and standard deviation 2. Shifting all the X values
to the right 10 units results in a normal distribution with mean ____________________ and standard
deviation ____________________.
ANS:
50; 2
fifty; two

47. ____________________ the value of  in a normal distribution will make it wider.
ANS:
Increasing

48. We standardize a random variable by subtracting its ____________________ and dividing by its
____________________.
ANS:
mean; standard deviation

49. Suppose X has a normal distribution with mean 10 and standard deviation 2. The probability that X is
less than 8 is equal to the probability that Z is less than ____________________.
ANS:
−1
50. P(Z > 1.9) = ____________________ P(Z < 1.9).
ANS:
1−
−

51. P(1 < Z < 2) = P(Z < 2) − ____________________.
ANS:
P(Z < 1)
P(Z<1)

52. The mean of the standard normal distribution is ____________________ and the standard deviation is
____________________.
ANS:
0; 1
zero; one

53. P(Z > 3.00) is approximately ____________________.
ANS:
0
zero

54. P(Z < 3.00) is approximately ____________________.
ANS:
1
one

55. Suppose X is a normal random variable with mean 70 and standard deviation 3. Then P(X = 3) =
____________________.
ANS:
0
zero

56. Z.025 is the value of Z such that the area to the ____________________ of Z is .9750.
ANS:
left

Battery Life
A certain brand of batteries has a lifetime that has a normal distribution with a mean of 3,750 hours
and a standard deviation of 300 hours.
57. {Battery Life Narrative} What proportion of these batteries will last for more than 4,000 hours?
ANS:
0.2033

58. {Battery Life Narrative} What proportion of these batteries will last less than 3,600 hours?
ANS:
0.3085

59. {Battery Life Narrative} What proportion of these batteries will last between 3,800 and 4,100 hours?
ANS:
0.3115

60. {Battery Life Narrative} What lifetime should the manufacturer advertise for these batteries in order
that only 2% of the lamps will wear out before the advertised lifetime?
ANS:
3135

Diet
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 10 pounds and a standard deviation of 5
pounds.
61. {Diet Narrative} What proportion of the dieters lost more than 12 pounds?
ANS:
0.3446

62. {Diet Narrative} What proportion of the dieters gained weight?
ANS:
0.0228

63. {Diet Narrative} If a dieter is selected at random, what is the probability that the dieter lost more than
7.5 pounds?
ANS:
0.6915

64. 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

65. If Z is a standard normal random variable, find the value z for which:
a. the area between 0 and z is 0.3729

b. the area to the right of z is 0.7123
c. the area to the left of z is 0.1736
d. the area between −z and z is 0.6630
ANS:
a. 1.14
b. −.56
c. −.94
d. 0.96

66. If Z is a standard normal random variable, find the following probabilities:
a. P(Z  −1.77)
b. P(Z  −1.96)
c. P(0.35  Z  0.85)
d. P(−2.88  Z  −2.15)
e. P(Z  1.45)
ANS:
a. 0.0384
b. 0.9750
c. 0.1655
d. 0.0138
e. 0.9265

Calculus Scores
Scores of high school students on a national calculus exam were normally distributed with a mean of
86 and a standard deviation of 4. (Total possible points = 100.)
67. {Calculus Scores Narrative} What is the probability that a randomly selected student will have a score
of 80 or higher?
ANS:
0.9332

between 80 and 90?
ANS:
0.7745

of 94 or lower?
ANS:
0.9772

Checking Accounts
A bank has determined that the monthly balances of the checking accounts of its customers are
normally distributed with an average balance of $1,200 and a standard deviation of $250.
70. {Checking Accounts Narrative} What proportion of customers have monthly balances less than
$1,000?
ANS:
0.2119

71. {Checking Accounts Narrative} What proportion of customers have monthly balances more than
$1,125?
ANS:
0.6179

72. {Checking Accounts Narrative} What proportion of customers have monthly balances between $950
and $1,075?
ANS:
0.1498

IT Graduates Salary
The recent average starting salary for new college graduates in IT systems is $47,500. Assume salaries
are normally distributed with a standard deviation of $4,500.
73. {IT Graduates Salary Narrative} What is the probability of a new graduate receiving a salary between
$45,000 and $50,000?
ANS:
0.4246

74. {IT Graduates Salary Narrative} What is the probability of a new graduate getting a starting salary in
excess of $55,000?
ANS:
0.0475

75. {IT Graduates Salary Narrative} What percent of starting salaries are no more than $42,250?
ANS:
12.10%

76. {IT Graduates Salary Narrative} What is the cutoff for the bottom 5% of the salaries?
ANS:
$40,097.50

77. {IT Graduates Salary Narrative} What is the cutoff for the top 3% of the salaries?
ANS:
$55,960

78. A worker earns $16 per hour at a plant and is told that only 5% of all workers make a higher wage. If
the wage is assumed to be normally distributed and the standard deviation of wage rates is $5 per hour,
find the average wage for the plant workers per hour.
ANS:
P(X > 16) = .05  (16 − ) / 5 = 1.645   = $7.78

79. The mean and the variance of an exponential distribution are equal to each other.
ANS:
F

80. 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

81. The mean and standard deviation of an exponential random variable are equal to each other.
ANS:
T

82. In the exponential distribution, X takes on an infinite number of possible values in the given range.
ANS:
T
83. If the mean of an exponential distribution is 2, then the value of the parameter  is 2.0.
ANS:
F

84. If the random variable X is exponentially distributed and the parameter of the distribution  = 4, then
P(X  1) = 0.25.
ANS:
F

85. If the random variable X is exponentially distributed with parameter  = 5, then the variance of X, 2 =
V(X) = 0.04.
ANS:
T

86. If the random variable X is exponentially distributed with parameter  = 0.05, then the variance of X,
2 = V(X) = 20.
ANS:
F

87. If the random variable X is exponentially distributed with parameter  = 0.05, then the probability P(X
> 20) = 0.3679.
ANS:
T

88. If the random variable X is exponentially distributed with parameter  = 0.05, then the probability P(X
< 5) = .2865.
ANS:
F

89. If the random variable X is exponentially distributed with parameter  = 2, then the probability that X
is between 1 and 2 equals the probability that X is between 2 and 3.
ANS:
F

90. Which of the following is true for an exponential distribution with parameter ?
a.  = 1/
b.  = 1/
c. The Y-intercept of f(x) is .
ANS:
D

91. If the random variable X is exponentially distributed with parameter  = 3, then the probability P(X 
2) equals:
a. 0.3333
b. 0.5000
c. 0.6667
d. 0.0025
ANS:
D

92. If the random variable X is exponentially distributed with parameter  = 1.5, then the probability P(2 
X  4), up to 4 decimal places, is
a. 0.6667
b. 0.0473
c. 0.5000
d. 0.2500
ANS:
B

93. 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
ANS:
A

94. Which of the following can have an exponential distribution?

a. Time between phone calls coming in to a technical support desk.
b. Time until the first customer arrives at the bank in the morning.
c. Lifetime of a new battery.
ANS:
D

95. 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.
ANS:
D

96. If the random variable X is exponentially distributed, then the mean of X will be:
a. greater than the median.
b. less than the median.
c. equal to the median.
d. Cannot tell; the answer depends on what  is.
ANS:
A

97. If the mean of an exponential distribution is 2, then the value of the parameter  is
a. 0
b. 2.0
c. 0.5
d. 1.0
ANS:
C

98. If the parameter of an exponential distribution is 1, then which of the following is true?
a. The density function is e−x for x  0.
b. The mean is equal to 1.
c. The standard deviation and variance are both equal to 1.
ANS:
D

99. A random variable with density function e−x for x  0 has an exponential distribution with  =
____________________.
ANS:
one
1

100. A random variable with density function e−x for x  0 has an exponential distribution whose mean is
____________________.
ANS:
one
1
101. A random variable with density function 0.01e−x/100 for x  0 has an exponential distribution whose
mean is ____________________.
ANS:
100

102. The shape of the density function for an exponential distribution is ____________________.
ANS:
skewed
positively skewed

103. The mean of an exponential random variable is ____________________ the median.
ANS:
greater than
>

104. If X has an exponential distribution, the possible values of X are from ____________________ to
infinity.
ANS:
zero
0

105. An exponential random variable is an example of a(n) ____________________ random variable.
ANS:
continuous

106. If X has an exponential distribution with parameter , then f(0) = ____________________.
ANS:


107. If X has an exponential distribution with parameter , then the mean of X is ______________.
ANS:
1/

108. If X has an exponential distribution, then f(x) approaches ____________________ as x approaches

infinity.
ANS:
zero
0

109. The y-intercept of the density function for an exponential distribution with parameter 10 is
____________________.
ANS:
10
(0, 10)
y = 10

110. If X has an exponential distribution, its ____________________ is equal to its

____________________.
ANS:
mean; standard deviation
standard deviation; mean

111. Let X be an exponential random variable with  = 1.50. Find the following:
a. P(X  2)
b. P(X  4)
c. P(1  X  3)
d. P(X = 1)
ANS:
a. 0.0498 (note that f(x) = 1.50e−x for x  0)

b. 0.9975
c. 0.2120
d. 0

112. Let X be an exponential random variable with  = 1.50. Find the following:
a. f(x)
b. The y-intercept of f(x)
ANS:
a. f(x) = 1.50e−x for x  0

b. (0, 1.50)

113. Suppose X has an exponential distribution with mean 2. Find f(x).
ANS:
f(x) = 0.50e−x for x  0

Truck Salesman
A used truck salesman in a small town states that, on the average, it takes him 5 days to sell a truck.
Assume that the probability distribution of the length of time between sales is exponentially
distributed.
114. {Truck Salesman Narrative} What is the probability that he will have to wait at least 8 days before
making another sale?
ANS:
0.2019 (Note  is 1/5 = 0.20 days.)
115. {Truck Salesman Narrative} What is the probability that he will have to wait between 6 and 10 days
before making another sale?
ANS:
0.1659

Repair Time
The time it takes a technician to fix a telephone problem is exponentially distributed with a mean of 15
minutes.
116. {Repair Time Narrative} What is the probability density function for the time it takes a technician to
fix a telephone problem?
ANS:
f(x) = (1/15)e−x/15, x  0

117. {Repair Time Narrative} What is the probability that it will take a technician less than 10 minutes to
fix a telephone problem?
ANS:
0.4866

118. {Repair Time Narrative} What is the variance of the time it takes a technician to fix a telephone
problem?
ANS:
225

119. {Repair Time Narrative} What is the probability that it will take a technician between 10 to 15 minutes
to fix a telephone problem?
ANS:
0.1455
Light Bulb Lifetime
The lifetime of a light bulb (in hours) is exponentially distributed with  = 0.008.
120. {Light Bulb Lifetime Narrative} What is the mean and standard deviation of the light bulb's lifetime?
ANS:
 =  = 1/ = 1/0.008 = 125 hours

121. {Light Bulb Lifetime Narrative} Find the probability that a light bulb will last between 120 and 140
hours.
ANS:
P(120  X  140) = e−0.008(120) − e−0.008(140) = 0.3829 − 0.3263 = 0.0566

122. {Light Bulb Lifetime Narrative} Find the probability that a light bulb will last for:
a. more than 125 hours.

b. at most 125 hours.
c. no more than 125 hours.
d. exactly 125 hours.
e. less than 125 hours.
f. at least 125 hours.
g. no less than 125 hours.
ANS:
a. P(X > 125) = 0.3679

b. P(X  125) = 0.6321
c. P(X  125) = 0.6321
d. P(X = 125) = 0
e. P(X < 125) = 0.6321
f. P(X  125) = 0.3679
g. P(X  125) = 0.3679

Counter Sales
Suppose that customers arrive at a counter at an average rate of three customers per minute and that
their arrivals follow the Poisson model.
123. {Counter Sales Narrative} Write the probability density function of the distribution of the time that
will elapse before the next customer arrives.
ANS:
Let T = Elapsed time before the next customer arrives. The random variable T follows an exponential
distribution where  = 3; with mean 1/3 minute between customers. Then the probability density
function of T is f(t) = 3e−t, t  0 minutes.

124. {Counter Sales Narrative} Use the appropriate exponential distribution to find the probability that the
next customer will arrive within 1.5 minutes.
ANS:
0.9889

125. {Counter Sales Narrative} Use the appropriate exponential distribution to find the probability that the
next customer will not arrive within the next 2 minutes.
ANS:
0.0025

Phone Orders
The L. L. Bean catalog department that receives the majority of its orders by telephone conducted a
study to determine how long customers were willing to wait on hold before ordering a product. The
length of time was found to be a random variable best approximated by an exponential distribution
with a mean equal to 3 minutes.
126. {Phone Orders Narrative} What is the value of , the parameter of the exponential distribution in this
situation?
ANS:
Since  = 3, then .

127. {Phone Orders Narrative} What proportion of customers having to hold more than 1.5 minutes will
hang up before placing an order?
ANS:
P(X > 1.5) = e−0.5 = 0.6065

128. {Phone Orders Narrative} Find the waiting time at which only 10% of the customers will continue to
hold.
ANS:
P(X > x) = e−x  e−x/3 = .10  x = 6.908 minutes.

129. {Phone Orders Narrative} Find the time at which 50% of the customers will continue to hold?
ANS:
P(X > x) = e−x  e−x/3 = .50  x = 2.079 minutes.

130. {Phone Orders Narrative} What proportion of callers are put on hold longer than 3 minutes?
ANS:
P(X > 3) = e−3/3 = e−1 = 0.3679.

131. {Phone Orders Narrative} What is the probability that a randomly selected caller is placed on hold for
fewer than 6 minutes?
ANS:
P(X < 6) = 1 − e−6/3 = 1 − e−2 = 0.8647.

132. {Phone Orders Narrative} What is the probability that a randomly selected caller is placed on hold for
3 to 6 minutes?
ANS:
P(3 < X < 6) = e−3/3 − e−6/3 = e−1 − e−2 = 0.2325.

133. Like that of the Student t distribution, the shape of the chi-squared distribution depends on its number
of degrees of freedom.
ANS:
T

134. The value of 2 with v degrees of freedom such that the area to its right under the chi-squared curve is
equal to A is denoted by , while denotes the value such that the area to its left is A.
ANS:
T

135. The variance of a Student t random variable with v degrees of freedom (v > 2) is always greater than 1.
ANS:
T

136. We define as the value of the F with v1 and v2 degrees of freedom such that the area to its
right under the F curve is A, while is defined as the value such that the area to its left is A.
ANS:
T

137. The value of A such that P(−A  t  A) = 0.95, where the degrees of freedom are 20, is 2.086.
ANS:
T

138. The variance of a 2 distribution is twice the value of its mean.
ANS:
T

139. As the degrees of freedom approach infinity, the values of a Student t distribution approach those of a
standard normal distribution.
ANS:
T

140. The value of an F distribution with v1 = 5 and v2 = 10 degrees of freedom such that the area to its left is
0.95 is 3.33.
ANS:
T

141. The expected value of the Student t distribution is zero.
ANS:
T

142. The variance of a Student t distribution approaches zero as the degrees of freedom approaches infinity.
ANS:
F

143. The value of an F distribution with v1 = 6 and v2 = 9 degrees of freedom such that the area to its right is
0.05 is 3.37.
ANS:
T

144. The value of a chi-squared distribution with 5 degrees of freedom such that the area to its left is 0.10 is
1.61.
ANS:
T

145. The Student t distribution looks similar in shape to a standard normal distribution, except it is not as
widely spread.
ANS:
F

146. The value of a chi-squared distribution with 8 degrees of freedom such that the area to its left is 0.95 is
2.73.
ANS:
F

147. The Student t distribution:

a. is symmetrical.
b. approaches the normal distribution as the degrees of freedom increase.
c. has more area in the tails than the standard normal distribution does.
ANS:
D

148. The Student t distribution with parameter v = 2 has a mean E(t) equal to:
a. 0
b. 1
c. 2
ANS:
A

149. The Student t distribution with parameter v = 4 has a variance V(t) equal to:
a. 4
b. 0
c. 2
d. 1
ANS:
C

150. Which of the following statements is correct regarding the percentile points of the F distribution?
a. F0.10,10,20 = 1/F0.90,10,20
b. F0.90,10,20 = 1/F0.10,20,10
c. F0.90,10,20 = 1/F0.90,20,10
d. F0.10,10,20 = 1/F0.10,20,10
ANS:
B

151. Which of the following statements is true?

a. The chi-squared distribution is positively skewed.
b. All the values of the chi-squared distribution are non-negative.
c. The shape of the chi-squared distribution depends on its degrees of freedom.
ANS:
D

152. What number corresponds to t0.05,10?

a. 1.812
b. 1.372
c. 2.228
d. 1.833
ANS:
A

153. If P(t > t.01,v) = 2.50, then the number of degrees of freedom v is:
a. 20
b. 21
c. 22
d. 23
ANS:
D

154. What number corresponds to ?

a. 28.30
b. 26.22
c. 21.00
d. 5.23
ANS:
C

155. If , then the number of degrees of freedom v is:

a. 5
b. 6
c. 7
d. 8
ANS:
B

156. What number corresponds to F0.95,4,8?

a. 6.040
b. 3.840
c. 0.260
d. 0.166
ANS:
D

157. What number corresponds to F.025,3,5?

a. 14.88
b. 7.76
c. 12.06
d. 5.41
ANS:
B

158. Suppose X has a chi-squared distribution with 10 degrees of freedom. The mean of X is:
a. 10
b. 9
c. 20
ANS:
A

159. Suppose X has a chi-squared distribution with 10 degrees of freedom. The variance of X is:
a. 20
b. 10
c. 9
ANS:
A

160. The number of parameters for an F distribution is:

a. 1
b. 2
c. 0
ANS:
B

161. Suppose X has an F distribution. Which of the following is true?

a. f(x) is symmetrical.
b. All the values of X are non-negative.
c. The mean of X is zero.
d. All of these choices.
ANS:
B

162. Which of the following distributions can take on negative values?

a. Student t
b. 2
c. F
ANS:
A

163. Which of the following distributions is not skewed?

a. Student t
b. 2
c. F
d. All of these distributions are skewed.
ANS:
A

164. Which of the following has a mean and variance that depend on degrees of freedom?
a. Student t
b. 2
c. F
ANS:
D

165. The shape of the ____________________ distribution is similar to a normal distribution, except it has
more area in the tails.
ANS:
Student t
t

166. The mean of a Student t distribution is ____________________.
ANS:
zero
0

167. The variance of a Student t distribution approaches ____________________ as the degrees of freedom
increase to infinity.
ANS:
one
1

168. A 2 distribution with 5 degrees of freedom has a mean of ____________________ and a variance of
____________________.
ANS:
5; 10
five; ten

169. The mean and variance of a 2 distribution approach ____________________ as the degrees of
freedom increase.
ANS:
infinity
170. For values of degrees of freedom greater than 100, the 2 distribution can be approximated by a(n)
____________________ distribution.
ANS:
normal

171. The shape of a 2 distribution is ____________________.
ANS:
positively skewed
skewed

172. The F distribution has two parameters called degrees of freedom, 1 and 2. We call 1 the
____________________ degrees of freedom, and we call 2 the ____________________ degrees of
freedom.
ANS:
numerator; denominator

173. As the ____________________ degrees of freedom increase, the mean of the F distribution
approaches 1.
ANS:
denominator

174. The shape of an F distribution is ____________________.
ANS:
positively skewed
skewed
175. Use the t-table to find the following values of t.
a. t.10,9
b. t.10,20
c. t.025,82
d. t.05,196
ANS:
a. 1.383
b. 1.325
c. 1.990
d. 1.653

176. Use the t-table to find the following probabilities.
a. P(t8 > 2.306)

b. P(t80 > 2.639)
c. P(t24 > 1.711)
d. P(t35 > 1.306)
ANS:
a. 0.025
b. 0.005
c. 0.050
d. 0.100

177. Use the 2 table to find the following values of 2.
a.
b.
c.
d.
ANS:
a. 14.61
b. 37.6
c. 4.61
d. 45.44

178. Use the 2 table to find the following probabilities.
a.
b.
c.
d.
ANS:
a. 0.900
b. 0.050
c. 0.025
d. 0.010

179. Use the F table to find the following values of F.
a. F.01,12,20
b. F.05,20,40
c. F.025,5,15
d. F.01,8,30
ANS:
a. 3.23
b. 1.84
c. 3.58
d. 3.17

180. Use the F table to find the following values of F.
a. F.99,12,20
b. F.95,20,40
c. F.975,5,15
d. F.99,8,30
ANS:
a. 1 / 3.86 = 0.2591
b. 1 / 1.99 = 0.5025
c. 1 / 6.43 = 0.1555
d. 1 / 5.20 = 0.1923

181. Use the F table to find the following probabilities.
a. P(F6,14 > 2.85)

b. P(F20,60 > 2.20)
c. P(F12,25 > 2.51)
d. P(F15,30 > 2.01)
ANS:
a. 0.05
b. 0.01
c. 0.025
d. 0.05

182. Suppose you have a Student t distribution with 20 degrees of freedom.
a. Find the mean.

b. Find the variance.
c. Find the standard deviation.
ANS:
a. 0
b. 20/18 = 1.11
c. 1.05

183. Suppose you have a 2 distribution with 20 degrees of freedom.
a. Find the mean.

ANS:
a. 20
b. 40
c. 6.32

184. Suppose you have an F distribution with degrees of freedom 10, 20.
a. Find the mean

ANS:
a. 20/18 = 1.11
b. [2(20)2 (10 + 20 − 2)] / [(10)(18)2 (20 − 4)] = 0.4321
c. 0.4321 = 0.6573

185. What happens to the shape, mean, and variance of a Student t distribution as the degrees of freedom
increase?
ANS:
As the degrees of freedom of the Student t distribution increase, the shape approaches a standard
normal distribution; the mean remains 0; and the variance approaches 1.

186. What happens to the shape, mean, and variance of a 2 distribution as the degrees of freedom
increase?
ANS:
The shape becomes less positively skewed; the mean increases to infinity, as does the variance.


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Statistics for Management and

Economics Abbreviated 10th Edition

ANS: T PTS: 1 DIF: Easy OBJ: SFME.KELL.15.08.01

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

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1. A continuous random variable X has the following probability density function:

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a. What is the probability density function for this uniform distribution?

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7. Suppose f(x) equals 1/50 on the interval [0, 50].

a. What is the distribution of X?

a. X has a uniform distribution on the interval [0, 50].

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Subway Waiting Time

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