Question 1

The covariance between two investments is equal to the sum of the variances of the investments.

Accepted Answer

A) True 
 B)False

Question 2

In a Poisson distribution,the mean and variance are equal.

Accepted Answer

A) True 
 B)False

Question 3

Instruction 5-5
There are two houses with almost identical characteristics available for investment in two different neighbourhoods with drastically different demographic composition.The anticipated gain in value when the houses are sold in 10 years has the following probability distribution:
Returns
 $$\begin{array} { | c | c | c | } 
\hline \text { Probability } & \text { Neighbourhood A } & \text { Neighbourhood B } \
\hline .25 & - \$ 22,500 & \$ 30,500 \
\hline .40 & \$ 10,000 & \$ 25,000 \
\hline .35 & \$ 40,500 & \$ 10,500 \
\hline
\end{array}$$
-Referring to Instruction 5-5,what is the total variance of value gain if you invest in both houses?

Accepted Answer

The answer of Instruction 5-5
There are two houses with almost...

Question 4

Instruction 5-5
There are two houses with almost identical characteristics available for investment in two different neighbourhoods with drastically different demographic composition.The anticipated gain in value when the houses are sold in 10 years has the following probability distribution:
Returns
 $$\begin{array} { | c | c | c | } 
\hline \text { Probability } & \text { Neighbourhood A } & \text { Neighbourhood B } \
\hline .25 & - \$ 22,500 & \$ 30,500 \
\hline .40 & \$ 10,000 & \$ 25,000 \
\hline .35 & \$ 40,500 & \$ 10,500 \
\hline
\end{array}$$
-Referring to Instruction 5-5,if you can invest 70% of your money on the house in neighbourhood A and the remaining on the house in neighbourhood B,what is the portfolio expected return of your investment?

Accepted Answer

The answer of Instruction 5-5
There are two houses with almost...

Question 5

The on-line access computer service industry is growing at an extraordinary rate.Current estimates suggest that only 20% of the home-based computers have access to on-line services.This number is expected to grow quickly over the next 5 years.Suppose 25 people with home-based computers were randomly and independently sampled.Find the probability that fewer than 10 of those sampled currently have access to on-line services.

Accepted Answer

The answer of The on-line access computer service industry is...

Question 6

The number of power outages at a nuclear power plant has a Poisson distribution with a mean of 6 outages per year.The probability that there will be at least 1 power outage in a year is ________.

Accepted Answer

The answer of The number of power outages at a...

Question 7

If n = 10 and p = 0.70,then the mean of the binomial distribution is

Accepted Answer

A) 7.00. 
B) 0.07. 
C) 14.29. 
D) 1.45. 
A) 7.00. 
B) 0.07. 
C) 14.29. 
D) 1.45.

Question 8

The number of 000 calls in Hobart has a Poisson distribution with a mean of 10 calls a day.The probability of 2 or more 000 calls in a day is ________.

Accepted Answer

The answer of The number of 000 calls in Hobart...

Question 9

Whenever p = 0.5,the binomial distribution will

Accepted Answer

A) be right-skewed. 
B) always be symmetric. 
C) be left-skewed. 
D) be symmetric only if n is large. 
A) be right-skewed. 
B) always be symmetric. 
C) be left-skewed. 
D) be symmetric only if n is large.

Question 10

Instruction 5-5
There are two houses with almost identical characteristics available for investment in two different neighbourhoods with drastically different demographic composition.The anticipated gain in value when the houses are sold in 10 years has the following probability distribution:
Returns
 $$\begin{array} { | c | c | c | } 
\hline \text { Probability } & \text { Neighbourhood A } & \text { Neighbourhood B } \
\hline .25 & - \$ 22,500 & \$ 30,500 \
\hline .40 & \$ 10,000 & \$ 25,000 \
\hline .35 & \$ 40,500 & \$ 10,500 \
\hline
\end{array}$$
-Referring to Instruction 5-5,if you can invest 10% of your money on the house in neighbourhood A and the remaining on the house in neighbourhood B,what is the portfolio expected return of your investment?

Accepted Answer

The answer of Instruction 5-5
There are two houses with almost...

Question 11

The largest value that a Poisson random variable X can have is n.

Accepted Answer

A) True 
 B)False

Question 12

Instruction 5-5
There are two houses with almost identical characteristics available for investment in two different neighbourhoods with drastically different demographic composition.The anticipated gain in value when the houses are sold in 10 years has the following probability distribution:
Returns
 $$\begin{array} { | c | c | c | } 
\hline \text { Probability } & \text { Neighbourhood A } & \text { Neighbourhood B } \
\hline .25 & - \$ 22,500 & \$ 30,500 \
\hline .40 & \$ 10,000 & \$ 25,000 \
\hline .35 & \$ 40,500 & \$ 10,500 \
\hline
\end{array}$$
-Referring to Instruction 5-5,if you can invest 30% of your money on the house in neighbourhood A and the remaining on the house in neighbourhood B,what is the portfolio expected return of your investment?

Accepted Answer

The answer of Instruction 5-5
There are two houses with almost...

Question 13

Instruction 5-5
There are two houses with almost identical characteristics available for investment in two different neighbourhoods with drastically different demographic composition.The anticipated gain in value when the houses are sold in 10 years has the following probability distribution:
Returns
 $$\begin{array} { | c | c | c | } 
\hline \text { Probability } & \text { Neighbourhood A } & \text { Neighbourhood B } \
\hline .25 & - \$ 22,500 & \$ 30,500 \
\hline .40 & \$ 10,000 & \$ 25,000 \
\hline .35 & \$ 40,500 & \$ 10,500 \
\hline
\end{array}$$
-Referring to Instruction 5-5,if your investment preference is to minimise the amount of risk that you have to take and do not care at all about the expected return,will you choose a portfolio that will consist of 10%,30%,50%,70%,or 90% of your money on the house in neighbourhood A and the remaining on the house in neighbourhood B?

Accepted Answer

The answer of Instruction 5-5
There are two houses with almost...

Question 14

If n = 10 and p = 0.70,then the standard deviation of the binomial distribution is

Accepted Answer

A) 14.29. 
B) 1.45. 
C) 7.00. 
D) 0.07. 
A) 14.29. 
B) 1.45. 
C) 7.00. 
D) 0.07.

Question 15

Instruction 5-8
A major airline keeps a record of the number of mishandled bags per 1,000 customers.In 2011,the airline had 4.06 mishandled bags per 1,000 customers.Assume that the number of mishandled bags has a Poisson distribution.
-What type of probability distribution will most likely be used to analyse the number of cars with defective radios in the following problem? From an inventory of 48 new cars being shipped to local dealerships,corporate reports indicate that 12 have defective radios installed.The sales manager of one dealership wants to predict the probability out of the 8 new cars it just received that,when each is tested,no more than 2 of the cars have defective radios.

Accepted Answer

A) Binomial distribution. 
B) Poisson distribution. 
C) Hypergeometric distribution. 
D) None of the above. 
A) Binomial distribution. 
B) Poisson distribution. 
C) Hypergeometric distribution. 
D) None of the above.

Question 16

Instruction 5-8
A major airline keeps a record of the number of mishandled bags per 1,000 customers.In 2011,the airline had 4.06 mishandled bags per 1,000 customers.Assume that the number of mishandled bags has a Poisson distribution.
-Referring to Instruction 5-8,what is the probability that in the next 1,000 customers,the airline will have no more than two and at least eight mishandled bags?

Accepted Answer

The answer of Instruction 5-8
A major airline keeps a record...

Question 17

A certain type of new business succeeds 60% of the time.Suppose that three such businesses open (where they do not compete with each other,so it is reasonable to believe that their relative successes would be independent).Which of the following distributions would you use to determine the probability that all of them will fail?

Accepted Answer

A) Binomial distribution. 
B) Hypergeometric distribution. 
C) Poisson distribution. 
D) None of the above. 
A) Binomial distribution. 
B) Hypergeometric distribution. 
C) Poisson distribution. 
D) None of the above.

Question 18

If the outcomes of a random variable follow a Poisson distribution,then their

Accepted Answer

A) mean equals the standard deviation. 
B) mean equals the variance. 
C) median equals the standard deviation. 
D) median equals the variance. 
A) mean equals the standard deviation. 
B) mean equals the variance. 
C) median equals the standard deviation. 
D) median equals the variance.

Question 19

Instruction 5-3
The following table contains the probability distribution for X = the number of retransmissions necessary to successfully transmit a 1024K data package through a double satellite media.
 $$\begin{array} { | c | c | c | c | c | } 
\hline X & 0 & 1 & 2 & 3 \
\hline P ( X ) & 0.35 & 0.35 & 0.25 & 0.05 \
\hline
\end{array}$$
-Referring to Instruction 5-3,the variance for the number of retransmissions is ________.

Accepted Answer

The answer of Instruction 5-3
The following table contains the probability...

Question 20

Suppose that past history shows that 60% of university students prefer Brand C cola.A sample of 5 students is to be selected.The variance of the number that prefer Brand C is ________.

Accepted Answer

The answer of Suppose that past history shows that 60%...

The covariance between two investments is equal to the sum of the variances of the investments.

In a Poisson distribution,the mean and variance are equal.

The number of power outages at a nuclear power plant has a Poisson distribution with a mean of 6 outages per year.The probability that there will be at least 1 power outage in a year is ________.

If n = 10 and p = 0.70,then the mean of the binomial distribution is

The number of 000 calls in Hobart has a Poisson distribution with a mean of 10 calls a day.The probability of 2 or more 000 calls in a day is ________.

Whenever p = 0.5,the binomial distribution will

The largest value that a Poisson random variable X can have is n.

If n = 10 and p = 0.70,then the standard deviation of the binomial distribution is

If the outcomes of a random variable follow a Poisson distribution,then their

Suppose that past history shows that 60% of university students prefer Brand C cola.A sample of 5 students is to be selected.The variance of the number that prefer Brand C is ________.

Introduction and Data Collection

Presenting Data in Tables and Charts

Numerical Descriptive Measures

Basic Probability

The Normal Distribution and Other Continuous Distributions

Sampling Distributions

Confidence Interval Estimation

Fundamentals of Hypothesis Testing: One-Sample Tests

Hypothesis Testing: Two Sample Tests

Analysis of Variance

Simple Linear Regression

Introduction to Multiple Regression

Time-Series Forecasting and Index Numbers

Chi-Square Tests

Multiple Regression Model Building

Decision Making

Statistical Applications in Quality and Productivity Management

Further Non-Parametric Tests

Filters

Exam 5: Some Important Discrete Probability Distributions

The covariance between two investments is equal to the sum of the variances of the investments.

In a Poisson distribution,the mean and variance are equal.

The number of power outages at a nuclear power plant has a Poisson distribution with a mean of 6 outages per year.The probability that there will be at least 1 power outage in a year is ________.

If n = 10 and p = 0.70,then the mean of the binomial distribution is

The number of 000 calls in Hobart has a Poisson distribution with a mean of 10 calls a day.The probability of 2 or more 000 calls in a day is ________.

Whenever p = 0.5,the binomial distribution will

The largest value that a Poisson random variable X can have is n.

If n = 10 and p = 0.70,then the standard deviation of the binomial distribution is

If the outcomes of a random variable follow a Poisson distribution,then their

Suppose that past history shows that 60% of university students prefer Brand C cola.A sample of 5 students is to be selected.The variance of the number that prefer Brand C is ________.

Introduction and Data Collection

Presenting Data in Tables and Charts

Numerical Descriptive Measures

Basic Probability

The Normal Distribution and Other Continuous Distributions

Sampling Distributions

Confidence Interval Estimation

Fundamentals of Hypothesis Testing: One-Sample Tests

Hypothesis Testing: Two Sample Tests

Analysis of Variance

Simple Linear Regression

Introduction to Multiple Regression

Time-Series Forecasting and Index Numbers

Chi-Square Tests

Multiple Regression Model Building

Decision Making

Statistical Applications in Quality and Productivity Management

Further Non-Parametric Tests

Filters