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Basic Statistics for Business Economics
Exam 6: Continuous Probability Distributions
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Question 121
Multiple Choice
The total area of a normal probability distribution is
Question 122
Multiple Choice
(i. The proportion of the area under a normal curve to the right of z = -1.21 is 0.8869. (ii) The proportion of the area under a normal curve to the left of z = 0.50 is 0.6941. (iii) The proportion of the area under a normal curve to the left of z = -2.10 is 0.1179.
Question 123
Multiple Choice
Normally distributed observations such as a person's weight, height or shoe size occur quite frequently in nature. Business people who are aware of this use it to their advantage. A purchasing agent for a college bookstore buying 300 golf shirts used the normal curve to decide on the order quantities for the various sizes. If men's average shirt size is 15.5 with a standard deviation of.50, how many shirts should be ordered in sizes over 16.5?
Question 124
Multiple Choice
A sample of 500 evening students revealed that their annual incomes from employment in industry during the day were normally distributed with a mean income of $30,000 and a standard deviation of $3,000. (i) 250 students earned more than $30,000. (ii. 500 students earned between $20,000 and $40,000. (iii) 11 students earned more than $36,000.
Question 125
Multiple Choice
What is the area under the normal curve between z = 0.0 and z = 2.0?
Question 126
Multiple Choice
A sample of 500 evening students revealed that their annual incomes were normally distributed with a mean income of $50,000 and a standard deviation of $4,000. What is the income that separates the top 5% from the lower 95% of the incomes?
Question 127
Multiple Choice
The mean of any uniform probability distribution is
Question 128
Multiple Choice
i. Asymptotic, means that the normal curve gets closer and closer to the X-axis but never actually touches it. ii. When referring to the normal probability function, there is not just one of them; there is a "family" of them. iii. Some normal probability distributions have different arithmetic means and different standard deviations.
Question 129
Multiple Choice
Suppose a tire manufacturer wants to set a mileage guarantee on its new XB 70 tire. Life test revealed that the mean mileage is 47,900 and the standard deviation of the normally distributed distribution of mileage is 2,050 miles. The manufacturer wants to set the guaranteed mileage so that no more than 5 percent of the tires will have to be replaced. What guaranteed mileage should the manufacturer announce?
Question 130
Multiple Choice
Determine the z-score associated with an area of 0.48 from the mean of a normal distribution to that positive z-score.
Question 131
Multiple Choice
A major credit card company has determined that customers charge between $100 and $1,100 per month. Given that the average monthly amount charged is uniformly distributed, what percent of monthly charges are between $600 and $889?
Question 132
Multiple Choice
Replacement times for TV sets are normally distributed with a mean of 8.2 years and a standard deviation of 1.1 years, (based on data from "Getting Things Fixed, "Consumer Reports) . (i) The replacement time that separated the top 20% from the bottom 80% is 9.124 years. (ii. The probability that a randomly selected TV will be replaced after more than 10.0 years is 0.0505.
Question 133
Multiple Choice
Tabulation of a strike vote showed that 90% of those voting cast their ballot in favour of strike action. You take a sample of 50 voters. Assume this to be a binomial distribution. What is the mean for this distribution?
Question 134
Multiple Choice
A cola-dispensing machine is set to dispense a mean of 2.02 litres into a container labelled 2 liters. Actual quantities dispensed vary and the amounts are normally distributed with a standard deviation of 0.015 litres. What is the probability a container will have less than 2 litres?
Question 135
Multiple Choice
A sample of 500 evening students revealed that their annual incomes were normally distributed with a mean income of $50,000 and a standard deviation of $4,000. How many students earned between $47,000 and $53,000?