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Basic Business Statistics Study Set 3
Exam 6: The Normal Distribution and Other Continuous Distributions
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Question 141
Short Answer
SCENARIO 6-3 Suppose the time interval between two consecutive defective light bulbs from a production line has a uniform distribution over an interval from 0 to 90 minutes. -Referring to Scenario 6-3,what is the probability that the time interval between two consecutive defective light bulbs will be at least 80 minutes?
Question 142
Short Answer
The amount of time necessary for assembly line workers to complete a product is a normal variable with a mean of 15 minutes and a standard deviation of 2 minutes.The probability is that a product is assembled in between 14 and 16 minutes.
Question 143
Short Answer
SCENARIO 6-6 According to Investment Digest,the arithmetic mean of the annual return for common stocks over an 85-year period was 9.5% but the value of the variance was not mentioned.Also 25% of the annual returns were below 8% while 65% of the annual returns were between 8% and 11.5%.The article claimed that the distribution of annual return for common stocks was bell-shaped and approximately symmetric.Assume that this distribution is normal with the mean given above.Answer the following questions without the help of a calculator,statistical software or statistical table. -Referring to Scenario 6-6,75% of the annual returns will be lower than what value?
Question 144
Short Answer
SCENARIO 6-2 John has two jobs.For daytime work at a jewelry store he is paid $15,000 per month,plus a commission.His monthly commission is normally distributed with mean $10,000 and standard deviation $2000.At night he works occasionally as a waiter,for which his monthly income is normally distributed with mean $1,000 and standard deviation $300.John's income levels from these two sources are independent of each other. -Referring to Scenario 6-2,for a given month,what is the probability that John's commission from the jewelry store is between $5,000 and $7,000?
Question 145
Short Answer
You were told that the mean score on a statistics exam is 75 with the scores normally distributed.In addition,you know the probability of a score between 55 and 60 is 4.41% and that the probability of a score greater than 90 is 6.68%.What is the probability of a score between 60 and 75?
Question 146
Short Answer
SCENARIO 6-3 Suppose the time interval between two consecutive defective light bulbs from a production line has a uniform distribution over an interval from 0 to 90 minutes. -Referring to Scenario 6-3,the probability is 50% that the time interval between two consecutive defective light bulbs will fall between which two values that are the same distance from the mean?
Question 147
Short Answer
SCENARIO 6-1 The number of column inches of classified advertisements appearing on Mondays in a certain daily newspaper is normally distributed with population mean of 320 and population standard deviation of 20 inches. -Referring to Scenario 6-1,for a randomly chosen Monday,what is the probability there will be between 280 and 360 column inches of classified advertisement?
Question 148
Short Answer
You were told that the mean score on a statistics exam is 75 with the scores normally distributed.In addition,you know the probability of a score between 55 and 60 is 4.41% and that the probability of a score greater than 90 is 6.68%.What is the probability of a score between 90 and 95?
Question 149
Short Answer
SCENARIO 6-6 According to Investment Digest,the arithmetic mean of the annual return for common stocks over an 85-year period was 9.5% but the value of the variance was not mentioned.Also 25% of the annual returns were below 8% while 65% of the annual returns were between 8% and 11.5%.The article claimed that the distribution of annual return for common stocks was bell-shaped and approximately symmetric.Assume that this distribution is normal with the mean given above.Answer the following questions without the help of a calculator,statistical software or statistical table. -Referring to Scenario 6-6,find the probability that the annual return of a random year will be less than 7.5%.
Question 150
Short Answer
The true length of boards cut at a mill with a listed length of 10 feet is normally distributed with a mean of 123 inches and a standard deviation of 1 inch.What proportion of the boards will be between 121 and 124 inches?
Question 151
Short Answer
A company that sells annuities must base the annual payout on the probability distribution of the length of life of the participants in the plan.Suppose the probability distribution of the lifetimes of the participants is approximately a normal distribution with a mean of 68 years and a standard deviation of 3.5 years.What proportion of the plan recipients would receive payments beyond age 75?
Question 152
Short Answer
The amount of time between successive TV watching by first graders follows an exponential distribution with a mean of 10 hours.The probability that a given first grader spends between 10 and 15 hours between successive TV watching is .
Question 153
True/False
A normal probability plot may be used to assess the assumption of normality for a set of data.
Question 154
Multiple Choice
The owner of a fish market determined that the mean weight for a catfish is 3.2 pounds with a standard deviation of 0.8 pound.A citation catfish should be one of the top 2% in weight.Assuming the weights of catfish are normally distributed,at what weight (in pounds) should the citation designation be established?
Question 155
Short Answer
A company that sells annuities must base the annual payout on the probability distribution of the length of life of the participants in the plan.Suppose the probability distribution of the lifetimes of the participants is approximately a normal distribution with a mean of 68 years and a standard deviation of 3.5 years.What proportion of the plan recipients die before they reach the standard retirement age of 65?
Question 156
Short Answer
The amount of tea leaves in a can from a production line is normally distributed with μ= 110 grams and σ= 25 grams.Approximately 83% of the can will have at least how many grams of tea leaves?