Exam 19: Questions that Involve Online Topics

To determine the probability of getting between 3 and 4 events of interest in a binomial distribution,you will find the area under the normal curve between X = 3.5 and 4.5.

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 8 hours per week on average for the exam.

As a general rule,one can use the normal distribution to approximate a binomial distribution whenever n(π - 1)is at least 5.

To determine the probability of getting between 2 and 4 events of interest in a binomial distribution,you will find the area under the normal curve between X = 1.5 and 4.5.

TABLE 7-2 According to a survey,only 15% of customers who visited the website of a major retail store made a purchase.Random samples of size 50 are selected from a population of 900.Use the finite population correction factor. -Referring to Table 7-2,what proportion of the samples will have between 20% and 30% of customers who will make a purchase after visiting the website?

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 maximum amount that the student is willing to pay to obtain perfect information?

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 coefficient of variation for Action A?

TABLE 19-2 The following payoff matrix is given in dollars. -Referring to Table 19-2,the EMV for Action A is

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,if the probability of S1 is 0.2 and S2 is 0.8,then the expected opportunity loss (EOL)for A1 is

In an Analysis of Proportions (ANOP)with 6 groups,the sample size per group used to obtain the Nelson's h statistic should always be

TABLE 7-2 According to a survey,only 15% of customers who visited the website of a major retail store made a purchase.Random samples of size 50 are selected from a population of 900.Use the finite population correction factor. -Referring to Table 7-2,the mean of all the sample proportions of 50 customers who will make a purchase after visiting the website is ________.

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 opportunity loss for Action A with Event 2?

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,if the probability of S1 is 0.5,then the expected monetary value (EMV)for A1 is

A medical doctor is involved in a $1 million malpractice suit.He can either settle out of court for $250,000 or go to court.If he goes to court and loses,he must pay $825,000 plus $175,000 in court costs.If he wins in court the plaintiffs pay the court costs.Identify the outcomes of this decision-making problem.

TABLE 9-3 A drug company is considering marketing a new local anesthetic.The effective time of the anesthetic the drug company is currently producing has a normal distribution with a mean of 7.4 minutes with a standard deviation of 1.2 minutes.The chemistry of the new anesthetic is such that the effective time should be normally distributed with the same standard deviation.The company will market the new local anesthetic as being better if there is evidence that the population mean effective time is greater than the 7.4 minutes of the current local anesthetic. -Referring to Table 9-3,if you select a sample of 25 new local anesthetics and are willing to have a level of significance of 0.01,the probability of the company not marketing the new local anesthetic when its population mean effective time is not greater than the 7.4 minutes is ________.

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 EMV for Action B?

Opportunity loss is the difference between the lowest profit for an event and the actual profit obtained for an action taken.

You use the finite population correction factor when

To determine the probability of getting more than 3 events of interest in a binomial distribution,you will find the area under the normal curve for X = 3.5 and above.

The base period should be recent so that a price index is not severely affected by change in technology,and consumer attitudes and habits.