Question 1

Consider the following probability distribution.   The expected value is ________.

Accepted Answer

A)  0.9 
B)  1.5 
C)  1.9 
D)  2.5 
A)  0.9 
B)  1.5 
C)  1.9 
D)  2.5

Question 2

Consider the following probability distribution.   The standard deviation is ________.

Accepted Answer

A)  1.14 
B)  1.29 
C)  1.65 
D)  1.94 
A)  1.14 
B)  1.29 
C)  1.65 
D)  1.94

Question 3

A consumer who is risk averse is best characterized as ________.

Accepted Answer

A)  a consumer who may accept a risky prospect even if the expected gain is negative 
B)  a consumer who demands a positive expected gain as compensation for taking risk 
C)  a consumer who completely ignores risk and makes his or her decisions based solely on expected values 
D)  None of the above 
A)  a consumer who may accept a risky prospect even if the expected gain is negative 
B)  a consumer who demands a positive expected gain as compensation for taking risk 
C)  a consumer who completely ignores risk and makes his or her decisions based solely on expected values 
D)  None of the above

Question 4

A construction company found that on average its workers get into four car accidents per week.
A) What is the probability of exactly six car accidents in a random week?
B) What is the probability that there are fewer than two car accidents in a random week?
C) What is the probability that there are exactly eight car accidents over the course of three weeks?

Accepted Answer

a. 0.1042

Question 5

A company is going to release four quarterly reports this year. Suppose the company has a 32% chance of beating analyst expectations each quarter.
A) What is the probability that the company beats analyst expectations every quarter of this year?
B) What is the probability the company beats analyst expectations more than half the time this year?
C) What is the expected number of times the company will beat analyst expectations this year?

Accepted Answer

a. 0.0105

Question 6

The ounces of soda consumed by an adult next month are an example of a discrete random variable.

Accepted Answer

A) True 
 B)False

Question 7

The equation used to calculate binomial probabilities relies on permutations of n objects selected x at a time.

Accepted Answer

A) True 
 B)False

Question 8

An urn is filled with three different colors of balls: red, blue, and white. There are three red balls, seven blue balls, and five white balls. If four balls are drawn, what is the probability of drawing two blue balls?

Accepted Answer

The answer of An urn is filled with three different...

Question 9

During an hour of class, a professor anticipates six questions on average.
A) What is the probability that in a given hour of class, exactly six questions are asked?
B) What is the expected number of questions asked in a 20-minute period?
C) What is the probability that no questions are asked over a 20-minute period?

Accepted Answer

a. 0.1606

Question 10

A continuous random variable X assumes an (infinitely) uncountable number of distinct values.

Accepted Answer

A) True 
 B)False

Question 11

A car salesperson has a 5% chance of landing a sale with a random customer on the lot. Suppose 10 people come onto the lot today.
A) What is the probability that the salesperson sells exactly three cars today?
B) What is the probability he or she sells fewer than two cars today?
C) What is the expected number of cars he or she is going to sell today?

Accepted Answer

a. 0.0105

Question 12

An analyst believes that a stock's return depends on the state of the economy, for which she has estimated the following probabilities:   According to the analyst's estimates, the expected return of the stock is ________.

Accepted Answer

A)  7.8% 
B)  11.4% 
C)  11.7% 
D)  13.0% 
A)  7.8% 
B)  11.4% 
C)  11.7% 
D)  13.0%

Question 13

The number of homes sold by a realtor during a month has the following probability distribution:   What is the expected number of homes sold by the realtor during a month?

Accepted Answer

A)  1 
B)  1.2 
C)  1.5 
D)  2 
A)  1 
B)  1.2 
C)  1.5 
D)  2

Question 14

An analyst estimates that the year-end price of a stock has the following probabilities:   The stock's expected price at the end of the year is ________.

Accepted Answer

A)  $87.50 
B)  $88.50 
C)  $89.00 
D)  $90.00 
A)  $87.50 
B)  $88.50 
C)  $89.00 
D)  $90.00

Question 15

An investor has a $200,000 portfolio of which $120,000 has been invested in Stock A and the remainder in Stock B. Other characteristics of the portfolio are shown in the accompanying table.   The portfolio variance is ________. 
A) 8.17%
B) 13.80%
C) 66.78 (%)2
D) 190.70 (%)2

Accepted Answer

Question 16

The risk of the portfolio depends not only on the individual risks of the assets but also on the ________ between the asset returns.

Accepted Answer

The answer of The risk of the portfolio depends not...

Question 17

On a particular production line, the likelihood that a light bulb is defective is 5%. Ten light bulbs are randomly selected. What is the probability that none of the light bulbs will be defective?

Accepted Answer

A)  0.0105 
B)  0.0746 
C)  0.3151 
D)  0.5987 
A)  0.0105 
B)  0.0746 
C)  0.3151 
D)  0.5987

Question 18

A bank manager estimates that an average of two customers enter the tellers' queue every five minutes. Assume that the number of customers that enter the tellers' queue is Poisson distributed. What is the probability that exactly three customers enter the queue in a randomly selected five-minute period?

Accepted Answer

A)  0.0902 
B)  0.1804 
C)  0.2240 
D)  0.2707 
A)  0.0902 
B)  0.1804 
C)  0.2240 
D)  0.2707

Question 19

Chauncey Billups, a current shooting guard for the Los Angeles Clippers, has a career free-throw percentage of 89.4%. Suppose he shoots six free throws in tonight's game. What is the probability that Billups makes all six free throws?

Accepted Answer

A)  0.1070 
B)  0.3632 
C)  0.5105 
D)  0.6530 
A)  0.1070 
B)  0.3632 
C)  0.5105 
D)  0.6530

Question 20

According to a study by the Centers for Disease Control and Prevention, about 33% of U.S. births are Caesarean deliveries. Suppose seven expectant mothers are randomly selected. What is the probability that at most two of the expectant mothers will have a Caesarean delivery?

Accepted Answer

A)  0.2696 
B)  0.3088 
C)  0.4217 
D)  0.5783 
A)  0.2696 
B)  0.3088 
C)  0.4217 
D)  0.5783

Consider the following probability distribution. The expected value is ________.

Consider the following probability distribution. The standard deviation is ________.

A consumer who is risk averse is best characterized as ________.

The ounces of soda consumed by an adult next month are an example of a discrete random variable.

The equation used to calculate binomial probabilities relies on permutations of n objects selected x at a time.

An urn is filled with three different colors of balls: red, blue, and white. There are three red balls, seven blue balls, and five white balls. If four balls are drawn, what is the probability of drawing two blue balls?

A continuous random variable X assumes an (infinitely) uncountable number of distinct values.

An analyst believes that a stock's return depends on the state of the economy, for which she has estimated the following probabilities: According to the analyst's estimates, the expected return of the stock is ________.

The number of homes sold by a realtor during a month has the following probability distribution: What is the expected number of homes sold by the realtor during a month?

An analyst estimates that the year-end price of a stock has the following probabilities: The stock's expected price at the end of the year is ________.

An investor has a $200,000 portfolio of which $120,000 has been invested in Stock A and the remainder in Stock B. Other characteristics of the portfolio are shown in the accompanying table. The portfolio variance is ________. A) 8.17% B) 13.80% C) 66.78 (%)² ^D)190.70 (%)²

The risk of the portfolio depends not only on the individual risks of the assets but also on the ________ between the asset returns.

On a particular production line, the likelihood that a light bulb is defective is 5%. Ten light bulbs are randomly selected. What is the probability that none of the light bulbs will be defective?

Chauncey Billups, a current shooting guard for the Los Angeles Clippers, has a career free-throw percentage of 89.4%. Suppose he shoots six free throws in tonight's game. What is the probability that Billups makes all six free throws?

According to a study by the Centers for Disease Control and Prevention, about 33% of U.S. births are Caesarean deliveries. Suppose seven expectant mothers are randomly selected. What is the probability that at most two of the expectant mothers will have a Caesarean delivery?

Statistics and Data

Tabular and Graphical Methods

Numerical Descriptive Measures

Introduction to Probability

Continuous Probability Distributions

Sampling and Sampling Distributions

Interval Estimation

Hypothesis Testing

Statistical Inference Concerning Two Populations

Statistical Inference Concerning Variance

Chi-Square Tests

Analysis of Variance

Regression Analysis

Inference With Regression Models

Regression Models for Nonlinear Relationships

Regression Models With Dummy Variables

Time Series and Forecasting

Returns, Index Numbers, and Inflation

Nonparametric Tests

Filters

Exam 5: Discrete Probability Distributions

Consider the following probability distribution. The expected value is ________.

Consider the following probability distribution. The standard deviation is ________.

A consumer who is risk averse is best characterized as ________.

The ounces of soda consumed by an adult next month are an example of a discrete random variable.

The equation used to calculate binomial probabilities relies on permutations of n objects selected x at a time.

An urn is filled with three different colors of balls: red, blue, and white. There are three red balls, seven blue balls, and five white balls. If four balls are drawn, what is the probability of drawing two blue balls?

A continuous random variable X assumes an (infinitely) uncountable number of distinct values.

An analyst believes that a stock's return depends on the state of the economy, for which she has estimated the following probabilities: According to the analyst's estimates, the expected return of the stock is ________.

The number of homes sold by a realtor during a month has the following probability distribution: What is the expected number of homes sold by the realtor during a month?

An analyst estimates that the year-end price of a stock has the following probabilities: The stock's expected price at the end of the year is ________.

An investor has a $200,000 portfolio of which $120,000 has been invested in Stock A and the remainder in Stock B. Other characteristics of the portfolio are shown in the accompanying table. The portfolio variance is ________. A) 8.17% B) 13.80% C) 66.78 (%)2 D) 190.70 (%)2

The risk of the portfolio depends not only on the individual risks of the assets but also on the ________ between the asset returns.

On a particular production line, the likelihood that a light bulb is defective is 5%. Ten light bulbs are randomly selected. What is the probability that none of the light bulbs will be defective?

Chauncey Billups, a current shooting guard for the Los Angeles Clippers, has a career free-throw percentage of 89.4%. Suppose he shoots six free throws in tonight's game. What is the probability that Billups makes all six free throws?

According to a study by the Centers for Disease Control and Prevention, about 33% of U.S. births are Caesarean deliveries. Suppose seven expectant mothers are randomly selected. What is the probability that at most two of the expectant mothers will have a Caesarean delivery?

Statistics and Data

Tabular and Graphical Methods

Numerical Descriptive Measures

Introduction to Probability

Continuous Probability Distributions

Sampling and Sampling Distributions

Interval Estimation

Hypothesis Testing

Statistical Inference Concerning Two Populations

Statistical Inference Concerning Variance

Chi-Square Tests

Analysis of Variance

Regression Analysis

Inference With Regression Models

Regression Models for Nonlinear Relationships

Regression Models With Dummy Variables

Time Series and Forecasting

Returns, Index Numbers, and Inflation

Nonparametric Tests

Filters

An investor has a $200,000 portfolio of which $120,000 has been invested in Stock A and the remainder in Stock B. Other characteristics of the portfolio are shown in the accompanying table. The portfolio variance is ________. A) 8.17% B) 13.80% C) 66.78 (%)² ^D)190.70 (%)²