Exam 19: Questions that Involve Online Topics

When you use the Poisson distribution to approximate the binomial distribution, the standard deviation is nπ where n is the sample size and π is the probability of an event of interest.

TABLE 6-1 A company has 125 personal computers. The probability that any one of them will require repair on a given day is 0.15. -Referring to Table 6-1 and assuming that the number of computers that requires repair on a given day follows a binomial distribution, compute the probability that there will be at least 25 computers that require repair on a given day using a normal approximation.

TABLE 19-6 A student wanted to find out the optimal strategy to study for a Business Statistics exam. He constructed the following payoff table based on the mean amount of time he needed to study every week for the course and the degree of difficulty of the exam. From the information that he gathered from students who had taken the course, he concluded that there was a 40% probability that the exam would be easy. -Referring to Table 19-6, what is the expected opportunity loss of spending 8 hours per week on average studying for the exam?

One of the reasons that a correction for continuity adjustment is needed when approximating the binomial distribution with a normal distribution is because a random variable having a binomial distribution can have only a specified value while a random variable having a normal distribution can take on any values within an interval around that specified value.

TABLE 19-1 The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature. -Referring to Table 19-1, what is the best action using the maximax criterion?

To determine the probability of getting no more than 3 events of interest in a binomial distribution, you will find the area under the normal curve for X = 2.5 and below.

TABLE 19-2 The following payoff matrix is given in dollars. -Referring to Table 19-2, what is the optimal action using the EMV criterion?

TABLE 16-2 Given below are the prices of a basket of four food items from 2006 to 2010. -Referring to Table 16-2, what is the unweighted aggregate price index for the basket of four food items in 2009 using 2006 as the base year?

In a local cellular phone area, company A accounts for 60% of the cellular phone market, while company B accounts for the remaining 40% of the market. Of the cellular calls made with company A, 1% of the calls will have some sort of interference, while 2% of the cellular calls with company B will have interference. If a cellular call is selected at random and has interference, what is the probability that it was with company A?

TABLE 19-6 A student wanted to find out the optimal strategy to study for a Business Statistics exam. He constructed the following payoff table based on the mean amount of time he needed to study every week for the course and the degree of difficulty of the exam. From the information that he gathered from students who had taken the course, he concluded that there was a 40% probability that the exam would be easy. -Referring to Table 19-6, the optimal strategy using the expected monetary value criterion is to study 8 hours per week on average for the exam.

TABLE 16-1 Given below are the average prices for three types of energy products for five consecutive years. -Referring to Table 16-1, what are the simple price indices for electricity, natural gas and fuel oil, respectively, in year 4 using year 1 as the base year?

TABLE 9-1 A manufacturer produces light bulbs that have a mean life of at least 500 hours when the production process is working properly. Based on past experience, the population standard deviation is 50 hours and the light bulb life is normally distributed. The operations manager stops the production process if there is evidence that the population mean light bulb life is below 500 hours. -Referring to Table 9-1, if you select a sample of 100 light bulbs and are willing to have a level of significance of 0.05, the probability of the operations manager failing to stop the process when the process is not working properly is ________ if the population mean bulb life is 490 hours.

TABLE 19-5 The following payoff table shows profits associated with a set of 2 alternatives under 3 possible events. -Referring to Table 19-5, what is the EOL for Action A?

One of the reasons that a correction for continuity adjustment is needed when approximating the binomial distribution with a normal distribution is because the probability of getting a specific value of a random variable is zero with the normal distribution.

Blossom's Flowers purchases roses for sale for Valentine's Day. The roses are purchased for $10 a dozen and are sold for $20 a dozen. Any roses not sold on Valentine's Day can be sold for $5 per dozen. The owner will purchase 1 of 3 amounts of roses for Valentine's Day: 100, 200, or 400 dozen roses. The payoff for buying 200 dozen roses and selling 100 dozen roses at the full price is

TABLE 19-4 A stock portfolio has the following returns under the market conditions listed below. -Referring to Table 19-4, what is the coefficient of variation?

TABLE 19-6 A student wanted to find out the optimal strategy to study for a Business Statistics exam. He constructed the following payoff table based on the mean amount of time he needed to study every week for the course and the degree of difficulty of the exam. From the information that he gathered from students who had taken the course, he concluded that there was a 40% probability that the exam would be easy. -Referring to Table 19-6, the optimal strategy using the expected opportunity loss criterion is to study 16 hours per week on average for the exam.

TABLE 6-1 A company has 125 personal computers. The probability that any one of them will require repair on a given day is 0.15. -Referring to Table 6-1, which of the following is one of the properties required so that the binomial distribution can be used to compute the probability that no more than 2 computers will require repair on a given day?

TABLE 16-2 Given below are the prices of a basket of four food items from 2006 to 2010. -Referring to Table 16-2, what are the simple price indices for wheat, corn, soybeans and milk, respectively, in 2006 using 2010 as the base year?

Removal of uncertainty from a decision-making problem leads to a case referred to as perfect information.