Question 1

A car wash loses $30 on rainy days and makes $120 on days when it does not rain. If the probability of rain is .15, calculate expected profit for the car wash.

Accepted Answer

A)  $90 
B)  $76.50 
C)  $106.50 
D)  $97.50 
A)  $90 
B)  $76.50 
C)  $106.50 
D)  $97.50

Question 2

A fair die is rolled 10 times. What is the probability that an even number (2, 4, or 6) will occur between 2 and 4 times inclusive?

Accepted Answer

A)  .6123 
B)  .1709 
C)  .1611 
D)  .3662 
E)  .3223 
A)  .6123 
B)  .1709 
C)  .1611 
D)  .3662 
E)  .3223

Question 3

An insurance company will insure a $75,000 particular make and model of car for its full value against theft at a premium of $1,500 per year. Suppose that the probability that this particular automobile make and model will be stolen is .0075. Calculate the expected net profit for the insurance company.

Accepted Answer

A)  $937.50 
B)  $551.25 
C)  $1488.75 
D)  $562.50 
A)  $937.50 
B)  $551.25 
C)  $1488.75 
D)  $562.50

Question 4

When p = .5, the binomial distribution will ________ be symmetric.

Accepted Answer

A)  always 
B)  sometimes 
C)  never 
A)  always 
B)  sometimes 
C)  never

Question 5

The Securities and Exchange Commission has determined that the number of companies listed on the NYSE declaring bankruptcy is approximately a Poisson distribution with a mean of 2.6 per month. Find the probability that exactly 4 bankruptcies occur next month.

Accepted Answer

A)  .8774 
B)  .1414 
C)  .7736 
D)  .2640 
A)  .8774 
B)  .1414 
C)  .7736 
D)  .2640

Question 6

Which of the following is a valid probability value for a discrete random variable?

Accepted Answer

A)  .2 
B)  1.01 
C)  −.7 
D)  All of the choices are correct. 
A)  .2 
B)  1.01 
C)  −.7 
D)  All of the choices are correct.

Question 7

A vaccine is 95 percent effective. What is the probability that it is not effective for 1 and only 1 individual out of 20 individuals?

Accepted Answer

A)  .2642 
B)  .6415 
C)  .3584 
D)  .3774 
A)  .2642 
B)  .6415 
C)  .3584 
D)  .3774

Question 8

In a binomial experiment, the results of one trial are dependent on the results of other trials.

Accepted Answer

A) True 
 B)False

Question 9

For a binomial process, the probability of success is 40 percent and the number of trials is 5. Find the expected value.

Accepted Answer

A)  5.0 
B)  1.2 
C)  2.0 
D)  1.1 
A)  5.0 
B)  1.2 
C)  2.0 
D)  1.1

Question 10

A total of 50 raffle tickets are sold for a contest to win a car. If you purchase one ticket, what are your odds against winning?

Accepted Answer

A)  49 to 1 
B)  50 to 1 
C)  .05 
D)  .01 
A)  49 to 1 
B)  50 to 1 
C)  .05 
D)  .01

A car wash loses $30 on rainy days and makes $120 on days when it does not rain. If the probability of rain is .15, calculate expected profit for the car wash.

A fair die is rolled 10 times. What is the probability that an even number (2, 4, or 6) will occur between 2 and 4 times inclusive?

When p = .5, the binomial distribution will ________ be symmetric.

The Securities and Exchange Commission has determined that the number of companies listed on the NYSE declaring bankruptcy is approximately a Poisson distribution with a mean of 2.6 per month. Find the probability that exactly 4 bankruptcies occur next month.

Which of the following is a valid probability value for a discrete random variable?

A vaccine is 95 percent effective. What is the probability that it is not effective for 1 and only 1 individual out of 20 individuals?

In a binomial experiment, the results of one trial are dependent on the results of other trials.

For a binomial process, the probability of success is 40 percent and the number of trials is 5. Find the expected value.

A total of 50 raffle tickets are sold for a contest to win a car. If you purchase one ticket, what are your odds against winning?

An Introduction to Business Statistics and Analytics

Descriptive Statistics and Analytics: Tabular and Graphical Methods

Descriptive Statistics and Analytics: Numerical Methods

Probability and Probability Models

Predictive Analytics I: Trees, K-Nearest Neighbors, Naive Bayes,

Continuous Random Variables

Sampling Distributions

Confidence Intervals

Hypothesis Testing

Statistical Inferences Based on Two Samples

Experimental Design and Analysis of Variance

Chi-Square Tests

Simple Linear Regression Analysis

Multiple Regression and Model Building

Predictive Analytics Ii: Logistic Regression, Discriminate Analysis,

Time Series Forecasting and Index Numbers

Nonparametric Methods

Decision Theory

Filters

Exam 6: Discrete Random Variables

A car wash loses $30 on rainy days and makes $120 on days when it does not rain. If the probability of rain is .15, calculate expected profit for the car wash.

A fair die is rolled 10 times. What is the probability that an even number (2, 4, or 6) will occur between 2 and 4 times inclusive?

When p = .5, the binomial distribution will ________ be symmetric.

The Securities and Exchange Commission has determined that the number of companies listed on the NYSE declaring bankruptcy is approximately a Poisson distribution with a mean of 2.6 per month. Find the probability that exactly 4 bankruptcies occur next month.

Which of the following is a valid probability value for a discrete random variable?

A vaccine is 95 percent effective. What is the probability that it is not effective for 1 and only 1 individual out of 20 individuals?

In a binomial experiment, the results of one trial are dependent on the results of other trials.

For a binomial process, the probability of success is 40 percent and the number of trials is 5. Find the expected value.

A total of 50 raffle tickets are sold for a contest to win a car. If you purchase one ticket, what are your odds against winning?

An Introduction to Business Statistics and Analytics

Descriptive Statistics and Analytics: Tabular and Graphical Methods

Descriptive Statistics and Analytics: Numerical Methods

Probability and Probability Models

Predictive Analytics I: Trees, K-Nearest Neighbors, Naive Bayes,

Continuous Random Variables

Sampling Distributions

Confidence Intervals

Hypothesis Testing

Statistical Inferences Based on Two Samples

Experimental Design and Analysis of Variance

Chi-Square Tests

Simple Linear Regression Analysis

Multiple Regression and Model Building

Predictive Analytics Ii: Logistic Regression, Discriminate Analysis,

Time Series Forecasting and Index Numbers

Nonparametric Methods

Decision Theory

Filters