# Business Statistics, 9e (Groebner/Shannon/Fry) Chapter 5 Discrete Probability Distributions

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1 Business Statistics, 9e (Groebner/Shannon/Fry) Chapter 5 Discrete Probability Distributions 1) A random variable is generated when a variableʹs value is determined by using classical probability. Answer: FALSE Diff: 1 Keywords: random, variable, probability 2) The only two types of random variables are discrete and continuous random variables. Diff: 1 Keywords: random, discrete, continuous 3) If a random variable is discrete, it means that the outcome for the random variable can take on only one of two possible values. Answer: FALSE Diff: 1 Keywords: random, discrete, variable 4) The random variable, number of customers entering a store between 9 AM and noon, is an example of a discrete random variable. Diff: 1 Keywords: discrete, random, variable 5) When a single value is randomly chosen from a discrete distribution, the different possible values are mutually exclusive. Keywords: discrete, random, variable 6) The graph of a discrete random variable looks like a histogram where the probability of each possible outcome is represented by a bar. Diff: 1 Keywords: discrete, random, variable 5 1

2 7) When a market research manager records the number of potential customers who were surveyed indicating that they like the product design, the random variable, number who like the design, is a discrete random variable. Diff: 1 Keywords: discrete, random, variable 8) The time required to assemble two components into a finished part is recorded for each employee at the plant. The resulting random variable is an example of a continuous random variable. Diff: 1 Keywords: continuous, random, variable 9) The Colbert Real Estate Agency has determined the number of home showings given by its agents is the same each day of the week. Then the variable, number of showings, is a continuous distribution. Answer: FALSE Diff: 1 Keywords: discrete, continuous, random, variable 10) The Cromwell Construction Company has the opportunity to enter into a contract to build a mountain road. The following table shows the probability distribution for the profit that could occur if it takes the contract: Profit Probability \$30, \$50, \$70, \$100, Based on this information, the probability of profit being at least \$70,000 is Diff: 1 Keywords: discrete, random, variable 5 2

3 11) The Cromwell Construction Company has the opportunity to enter into a contract to build a mountain road. The following table shows the probability distribution for the profit that could occur if it takes the contract: Profit Probability \$30, \$50, \$70, \$100, Based on this information, the expected profit for the company if it takes the contract is \$70,500. Keywords: mean, discrete, random, variable 12) The Cromwell Construction Company has the opportunity to enter into a contract to build a mountain road. The following table shows the probability distribution for the profit that could occur if it takes the contract: Profit Probability \$30, \$50, \$70, \$100, Based on this information, the expected profit for the company if it takes the contract is \$60,000. Answer: FALSE Keywords: mean, discrete random, variable 13) A probability distribution with an expected value greater than the expected value of a second probability distribution will also have a higher standard deviation. Answer: FALSE Keywords: discrete, random, standard deviation, expected value 5 3

4 14) The Cromwell Construction Company has the opportunity to enter into a contract to build a mountain road. The following table shows the probability distribution for the profit that could occur if it takes the contract: Profit Probability \$30, \$50, \$70, \$100, Based on this information, the probability of profit being at least \$50,000 is Answer: FALSE Diff: 1 Keywords: discrete, random 15) The Cromwell Construction Company has the opportunity to enter into a contract to build a mountain road. The following table shows the probability distribution for the profit that could occur if it takes the contract: Profit Probability \$30, \$50, \$70, \$100, Based on this information, the profit standard deviation for the company if it takes the contract is \$11,235. Answer: FALSE Keywords: discrete, random, standard deviation 5 4

5 16) The number of no shows each day for dinner reservations at the Cottonwood Grille is a discrete random variable with the following probability distribution: No shows Probability Based on this information, the expected number of no shows is 1.65 customers. Keywords: expected value, discrete 17) The number of no shows for dinner reservations at the Cottonwood Grille is a discrete random variable with the following probability distribution: No shows Probability Based on this information, the most likely number of no shows on any given day is 0 customers. Keywords: discrete distribution 5 5

6 18) The number of no shows each day for dinner reservations at the Cottonwood Grille is a discrete random variable with the following probability distribution: No shows Probability Based on this information, the standard deviation for the number of no shows is about 0.36 customers. Answer: FALSE Keywords: standard deviation, discrete 19) The Ski Patrol at Criner Mountain Ski Resort has determined the following probability distribution for the number of skiers that are injured each weekend: Injured Skiers Probability Based on this information, the expected number of injuries per weekend is Keywords: expected value, discrete 5 6

7 20) The Ski Patrol at Criner Mountain Ski Resort has determined the following probability distribution for the number of skiers that are injured each weekend: Injured Skiers Probability Based on this information, the standard deviation for the number of injuries per weekend is Answer: FALSE Keywords: standard deviation, expected value, discrete 21) Holmstead Company owns two small engine repair stores. The expected value of the number of complaints received per month at store 1 is 4.5 complaints. Further, the expected number of complaints per month for store 1 and store 2 combined is This means the expected number of complaints per month at store 2 must be 9.1 complaints. Keywords: expected value, sum, discrete 22) In a Florida town, the probability distribution for the number of legitimate emergency calls per day for the Fire Department is given as follows. Also shown is the probability distribution for the number of false alarms: Given this information, the expected number of total calls to the fire department is 1.60 calls. Keywords: expected value, discrete 5 7

8 23) The Ace Construction Company has entered into a contract to widen a street in Boston. The possible payoffs for this project have been determined by management. The probabilities for these payoffs could be determined using a binomial distribution. Answer: FALSE Diff: 1 Keywords: probability, distribution 24) A construction company has found it has a probability of 0.10 of winning each time it bids on a project. The probability of winning a given number of projects out of 12 bids could be determined with a binomial distribution. Diff: 1 Keywords: binomial, distribution 25) Six managers at a company all enjoy golf. Each Saturday, four of the six get together for 18 holes of golf. They have decided to set up a schedule so that the same foursome does not play twice before all possible foursomes have played. The number of weekends that will pass before the same group would play twice is 15. Keywords: combination 26) Bill Price is a sales rep in northern California representing a line of athletic socks. Each day, he makes 10 sales calls. The chance of making a sale on each call is thought to be The probability that he will make exactly two sales is approximately Keywords: binomial formula, probability 27) One of the characteristics of the binomial distribution is that the probability of success for each trial depends on whether the previous trial was a success or not. Answer: FALSE Keywords: binomial distribution 5 8

9 28) Each week American Stores receives a shipment from a supplier. The contract specifies that the maximum allowable percent defective is 5 percent. When the shipment arrives, a sample of 20 parts is randomly selected. If 2 or more of the sampled parts are defective, the shipment is rejected and returned to the supplier. Assume that a shipment arrives that actually has 4 percent defective parts and the distribution of defective parts is described by a binomial distribution. The probability that the shipment is rejected is approximately Keywords: binomial formula, probability 29) Each week American Stores receives a shipment from a supplier. The contract specifies that the maximum allowable percent defective is 5 percent. When the shipment arrives, a sample of 20 parts is randomly selected. If 2 or more of the sampled parts are defective, the shipment is rejected and returned to the supplier. Assume that a shipment arrives that actually has 4 percent defective parts and the distribution of defective parts is described by a binomial distribution. The probability that the shipment is accepted is approximately 0.81 Keywords: binomial, probability 30) A pizza restaurant uses 7 different toppings on its pizzas. At lunch time it has a pizza buffet and makes pizzas with 2 toppings. If it wants to serve every possible combination of 2 toppings, it would need to make 14 different pizzas. Answer: FALSE Keywords: combinations 31) Ace Computer Manufacturer buys disk drives in lots of 5,000 units from a supplier in California. The contract calls for, at most, 3 percent of the disk drives to be defective. When a shipment arrives, a sample of n = 15 parts is selected. If zero defects are found in this sample, the shipment is accepted. If 3 or more defects are found, the shipment is rejected and sent back to the supplier. If the number of defects found is 1 or 2, a second sample of 15 parts is selected. If this sample yields 1 or fewer defects, the shipment is accepted; otherwise the shipment is rejected. Based on a binomial distribution, the probability that Ace will reject a shipment of parts that meets the contract requirements is approximately Keywords: binomial, probability 5 9

10 32) When using the binomial distribution, the maximum possible number of success is the number of trials. Diff: 1 Keywords: binomial, probability 33) The Nationwide Motel Company has determined that 70 percent of all calls for motel reservations request nonsmoking rooms. Recently, the customer service manager for the company randomly selected 25 calls. Assuming that the distribution of calls requesting nonsmoking rooms is described by a binomial distribution, the expected number of requests for nonsmoking rooms is 14. Answer: FALSE Diff: 1 Keywords: binomial, expected value 34) The Nationwide Motel Company has determined that 70 percent of all calls for motel reservations request nonsmoking rooms. Recently, the customer service manager for the company randomly selected 25 calls. Assuming that the distribution of calls requesting nonsmoking rooms is described by a binomial distribution, the standard deviation of requests for nonsmoking rooms is 5.25 customers. Answer: FALSE Keywords: binomial, standard deviation 35) The Nationwide Motel Company has determined that 70 percent of all calls for motel reservations request nonsmoking rooms. Recently, the customer service manager for the company randomly selected 25 calls. Assuming that the distribution of calls requesting nonsmoking rooms is described by a binomial distribution, the probability that more than 20 customers in the sample will request nonsmoking rooms is approximately Keywords: binomial, probability 5 10

11 36) The Nationwide Motel Company has determined that 70 percent of all calls for motel reservations request nonsmoking rooms. Recently, the customer service manager for the company randomly selected 25 calls. Assuming that the distribution of calls requesting nonsmoking rooms is described by a binomial distribution, the probability that fewer than 5 customers will request smoking rooms is approximately Keywords: binomial, probability, complement 37) The distribution for the number of emergency calls to a cityʹs 911 emergency number in a one hour time period is likely to be described by a binomial distribution. Answer: FALSE Keywords: distribution, Poisson 38) One difference between the binomial distribution and Poisson distribution is that the binomialʹs upper bound is the number of trials while the Poisson has no particular upper bound. Keywords: binomial, Poisson 39) The number of defects discovered in a random sample of 100 products produced at the Berdan Manufacturing Company is binomially distributed with p =.03. Based on this, the standard deviation of the number of defects per sample of size 100 is Answer: FALSE Keywords: binomial, standard deviation 40) A direct marketing company believes that the probability of making a sale when a call is made to an individualʹs home is.02. The probability of making 2 or 3 sales in a sample of 20 calls is Keywords: binomial, combination 5 11

12 41) A company has 20 copy machines and every day there is a 5 percent chance for each machine that it will not be working that day. If the company wants to calculate the probability of, say, 2 machines not working, it should use the Poisson distribution. Answer: FALSE Keywords: binomial, Poisson 42) The Hawkins Company randomly samples 10 items from every large batch before the batch is packaged and shipped. According to the contract specifications, 5 percent of the items shipped can be defective. If the inspectors find 1 or fewer defects in the sample of 10, they ship the batch without further inspection. If they find 2 or more, the entire batch is inspected. Based on this sampling plan, the probability that a batch that meets the contract requirements will be shipped without further inspection is approximately Keywords: binomial, combination 43) The Hawkins Company randomly samples 10 items from every large batch before the batch is packaged and shipped. According to the contract specifications, 5 percent of the items shipped can be defective. If the inspectors find 1 or fewer defects in the sample of 10, they ship the batch without further inspection. If they find 2 or more, the entire batch is inspected. Based on this sampling plan, the probability that a batch that contains twice the amount of defects allowed by the contract requirements will be shipped without further inspection is approximately Answer: FALSE Keywords: binomial, combination 44) The Hawkins Company randomly samples 10 items from every large batch before the batch is packaged and shipped. According to the contract specifications, 5 percent of the items shipped can be defective. If the inspectors find 1 or fewer defects in the sample of 10, they ship the batch without further inspection. If they find 2 or more, the entire batch is inspected. Based on this sampling plan, the probability that a batch that meets the contract requirements will end up being 100 percent inspected is approximately Answer: FALSE Keywords: binomial, combination 5 12

13 45) The probability of the outcome changes from trial to trial in a binomial experiment. Answer: FALSE Keywords: discrete, binomial 46) The primary difference between the binomial distribution and the Poisson distribution is that the Poisson is used to describe a continuous random variable and the binomial is used for discrete random variables. Answer: FALSE Diff: 1 Keywords: binomial, Poisson, distribution 47) The number of calls to an Internet service provider during the hour between 6:00 and 7:00 p.m. is described by a Poisson distribution with mean equal to 15. Given this information, the expected number of calls in the first 30 minutes is 7.5 calls. Diff: 1 Keywords: Poisson, expected value 48) The number of calls to an Internet service provider during the hour between 6:00 and 7:00 p.m. is described by a Poisson distribution with mean equal to 15. Given this information, the standard deviation for the call distribution is about 3.87 calls. Keywords: Poisson, standard deviation 49) The number of customers who arrive at a fast food business during a one hour period is known to be Poisson distributed with a mean equal to The probability that exactly 8 customers will arrive in a one hour period is Diff: 1 Keywords: Poisson, probability 5 13

14 50) The number of customers who arrive at a fast food business during a one hour period is known to be Poisson distributed with a mean equal to The probability that more than 4 customers will arrive in a 30 minute period is Answer: FALSE Keywords: Poisson, probability 51) The number of customers who arrive at a fast food business during a one hour period is known to be Poisson distributed with a mean equal to The probability that between 2 and 3 customers inclusively will arrive in one hour is Keywords: Poisson, probability 52) The Brockingham Carpet Company prides itself on high quality carpets. At the end of each day, the company quality managers select 3 square yards for inspection. The quality standard requires an average of no more than 2.3 defects per square yard. The expected number of defects that the inspector will find during the inspection is 6.9. Keywords: Poisson, expected value 53) The Brockingham Carpet Company prides itself on high quality carpets. At the end of each day, the company quality managers select 3 square yards for inspection. The quality standard requires an average of no more than 2.3 defects per square yard. Last night, the inspector found 8 defects in the sample of 3 square yards. The chance of finding 8 or more defects in the sample is Answer: FALSE Keywords: Poisson, probability 54) The makers of Crustfree Bread in Boston have a quality standard that allows no more than 3 burned loaves per batch on average. Recently, the manager inspected a batch and found 5 burned loaves. She did not appear to be upset at the production meeting. This is because the chance of exactly 5 burned loaves occurring is Keywords: Poisson 5 14

15 55) The makers of Crustfree Bread in Boston have a quality standard that allows for no more than 3 burned loaves per batch on average. Assuming that the average of 3 per batch is being met, the standard deviation for the number of burned loaves in 4 batches is approximately 1.73 loaves. Answer: FALSE Keywords: standard deviation, Poisson 56) The primary application for the hypergeometric probability distribution is in situations where the sampling is done without replacement from a finite population. Diff: 1 Keywords: hypergeometric, sampling, replacement 57) A warehouse contains 5 parts made by the Stafford Company and 8 parts made by the Wilson Company. If an employee selects 3 of the parts from the warehouse at random, the probability that none of the 3 parts is from the Wilson Company is approximately Keywords: hypergeometric, sample 58) A warehouse contains 5 parts made by the Stafford Company and 8 parts made by the Wilson Company. If an employee selects 3 of the parts from the warehouse at random, the probability that all 3 parts are from the Wilson Company is approximately Keywords: hypergeometric, sample 59) The city council consists of 3 Democrats, 5 Republicans and 3 independents. Subcommittees are supposed to be randomly assigned from the council. Suppose the 5 member planning and zoning subcommittee is composed of 3 Democrats and 2 Republicans. The probability of this happening by chance alone is approximately Answer: FALSE Keywords: hypergeometric, sample 5 15

16 60) A company has 20 cars that are available for use by company executives for official business purposes. Six of these cars are SUVs, 8 are luxury type cars, and the rest are basic sedans. Suppose the cars are randomly assigned each week. If 5 cars are put into use, the chance that none of the SUVs or luxury cars will be in the group is approximately Keywords: hypergeometric sample 61) When dealing with the number of occurrences of an event over a specified interval of time or space, the appropriate probability distribution is hypergeometric. Answer: FALSE Keywords: Poisson, hypergeometric 62) The following probability distribution has been assessed for the number of accidents that occur in a Midwestern city each day: Accidents Probability The probability of having less than 2 accidents on a given day is: A) 0.30 B) 0.75 C) 0.45 D) 0.25 Answer: C Diff: 1 Keywords: discrete, random variable 5 16

17 63) The following probability distribution has been assessed for the number of accidents that occur in a Midwestern city each day: Accidents Probability This distribution is an example of: A) a uniform distribution. B) a continuous probability distribution. C) a discrete probability distribution. D) an expected value distribution. Answer: C Diff: 1 64) The following probability distribution has been assessed for the number of accidents that occur in a Midwestern city each day: Accidents Probability Based on this distribution, the expected number of accidents in a given day is: A) 0.30 B) 1.65 C) 2.00 D) 2.50 Answer: B Keywords: expected value, discrete distribution 5 17

18 65) The following probability distribution has been assessed for the number of accidents that occur in a Midwestern city each day: Accidents Probability Based on this probability distribution, the standard deviation in the number of accidents per day is: A) 2.0 B) 1.63 C) 2.65 D) 1.28 Answer: D Keywords: standard deviation, discrete distribution 66) A sales rep for a national clothing company makes 4 calls per day. Based on historical records, the following probability distribution describes the number of successful calls each day: Successful Calls Probability Based on this information, the probability that the sales rep will have a total of 2 successful calls in a two day period is: A) 0.60 B) 0.09 C) 0.15 D) 0.06 Answer: C Keywords: discrete, probability 5 18

19 67) A sales rep for a national clothing company makes 4 calls per day. Based on historical records, the following probability distribution describes the number of successful calls each day: Successful Calls Probability The expected number of successful sales calls per day is: A) 2.00 B) 1.15 C) 1.90 D) 2.50 Answer: C Keywords: expected value, discrete distribution 68) A sales rep for a national clothing company makes 4 calls per day. Based on historical records, the following probability distribution describes the number of successful calls each day: Successful Calls Probability Based on the information provided, what is the probability of having at least 2 successful calls in one day? A) 0.60 B) 0.20 C) 0.30 D) 0.10 Answer: A Diff: 1 Keywords: discrete distribution 5 19

20 69) Consider the following two probability distributions: Which of the following is an accurate statement regarding these two distributions? A) Distribution A has a higher variance. B) Distribution B has a higher variance. C) Both distributions are positively skewed. D) Both distributions are uniform. Answer: A Keywords: discrete distribution, variance 70) Which of the following statements is incorrect? A) The expected value of a discrete probability distribution is the long run average value assuming the experiment will be repeated many times. B) The standard deviation of a discrete probability distribution measures the average deviation of the random variable from the mean. C) The distribution is considered uniform if all the probabilities are equal. D) The mean of the probability distribution is equal to the square root of the variance. Answer: D Keywords: probability distribution, expected value 71) The probability function for random variable X is specified as: The expected value of X is A) B) C) D) Answer: D Keywords: probability distribution, expected value 5 20

21 72) Which of the following is not a condition of the binomial distribution? A) Two possible outcomes for each trial B) The trials are independent. C) The standard deviation is equal to the square root of the mean. D) The probability of a success remains constant from trial to trial. Answer: C Diff: 1 Keywords: binomial distribution, standard deviation 73) A package delivery service claims that no more than 5 percent of all packages arrive at the address late. Assuming that the conditions for the binomial hold, if a sample of size 10 packages is randomly selected, and the 5 percent rate holds, what is the probability that exactly 2 packages in the sample arrive late? A) B) C) D) Answer: A Keywords: binomial distribution, probability 74) A package delivery service claims that no more than 5 percent of all packages arrive at the address late. Assuming that the conditions for the binomial hold, if a sample of size 10 packages is randomly selected and the 5 percent rate holds, what is the probability that more than 2 packages will be delivered late? A) B) C) D) Answer: A Keywords: binomial distribution, probability 5 21

22 75) The Vardon Exploration Company is getting ready to leave for South America to explore for oil. One piece of equipment requires 10 batteries that must operate for more than 2 hours. The batteries being used have a 15 percent chance of failing within 2 hours. The exploration leader plans to take 15 batteries. Assuming that the conditions of the binomial apply, the probability that the supply of batteries will contain enough good ones to operate the equipment is: A) B) C) D) Answer: B Keywords: binomial distribution, probability 76) The Vardon Exploration Company is getting ready to leave for South America to explore for oil. One piece of equipment requires 10 batteries that must operate for more than 2 hours. The batteries being used have a 15 percent chance of failing within 2 hours. The exploration leader plans to take 15 batteries. Assuming that the conditions of the binomial apply, the probability that the supply of batteries will not contain enough good ones to operate the equipment is: A) B) C) D) Answer: D Keywords: binomial distribution, probability 77) Previous research shows that 60 percent of adults who drink non diet cola prefer Coca Cola to Pepsi. Recently, an independent research firm questioned a random sample of 25 adult non diet cola drinkers. That chance that 20 or more of these people will prefer Coca Cola is: A) essentially zero. B) C) D) None of the above Answer: C Keywords: binomial, probability 5 22

25 84) Which of the following statements is true? A) A binomial distribution with n = 20 and p = 0.05 will be right skewed. B) A binomial distribution with n = 6 and p = 0.50 will be symmetric. C) A binomial distribution with n = 20 and p = 0.05 has an expected value equal to 1. D) A, B, and C are all true. Answer: D Keywords: binomial, symmetric, expected value 85) If the number of defective items selected at random from a parts inventory is considered to follow a binomial distribution with n = 50 and p = 0.10, the expected number of defective parts is: A) 5 B) approximately 2.24 C) more than 10 D) 0.5 Answer: A Diff: 1 Keywords: binomial, expected value 86) If the number of defective items selected at random from a parts inventory is considered to follow a binomial distribution with n = 50 and p = 0.10, the standard deviation of the number of defective parts is: A) 5 B) 4.5 C) 45 D) about 2.12 Answer: D Keywords: binomial, standard deviation 87) The probability that a product is found to be defective is If we examine 50 products, which of the following has the highest probability? A) 3 defective products are found. B) 4 defective products are found. C) 5 defective products are found. D) 6 defective products are found. Answer: C Keywords: binomial, expected value 5 25

26 88) If a study is set up in such a way that a sample of people is surveyed to determine whether they have ever used a particular product, the likely probability distribution that would describe the random variable, the number who say yes, is a: A) binomial distribution. B) Poisson distribution. C) uniform distribution. D) continuous distribution. Answer: A Keywords: binomial, distribution 89) Assuming that potholes occur randomly along roads, the number of potholes per mile of road could best be described by the: A) binomial distribution. B) Poisson distribution. C) hypergeometric distribution. D) continuous distribution Answer: B Keywords: Poisson distribution 90) The number of visible defects on a product container is thought to be Poisson distributed with a mean equal to 3.5. Based on this, the probability that 2 containers will contain a total of less than 2 defects is: A) B) C) D) Answer: C Keywords: Poisson distribution 91) The number of visible defects on a product container is thought to be Poisson distributed with a mean equal to 3.5. Based on this, how many defects should be expected if 3 containers are inspected? A) 10.5 B) Approximately 3.24 C) Between 4 and 7 D) 3.5 Answer: A Diff: 1 Keywords: Poisson, expected value 5 26

27 92) The number of customers who enter a bank is thought to be Poisson distributed with a mean equal to 10 per hour. What are the chances that no customers will arrive in a 15 minute period? A) Approximately zero B) C) D) Answer: C Keywords: Poisson, expected value 93) The number of customers who enter a bank is thought to be Poisson distributed with a mean equal to 10 per hour. What are the chances that 2 or 3 customers will arrive in a 15 minute period? A) B) C) D) Answer: B Keywords: Poisson, probability 94) If cars arrive to a service center randomly and independently at a rate of 5 per hour on average, what is the probability of 0 cars arriving in a given hour? A) B) C) D) Answer: B Keywords: Poisson, probability 95) If cars arrive to a service center randomly and independently at a rate of 5 per hour on average, what is the probability that exactly 5 cars will arrive during a given hour? A) B) C) D) Essentially zero Answer: A Keywords: Poisson, probability 5 27

28 96) The number of weeds that remain living after a specific chemical has been applied averages 1.3 per square yard and follows a Poisson distribution. Based on this, what is the probability that a 1 square yard section will contain less than 4 weeds? A) B) C) Nearly D) Answer: D Keywords: Poisson, probability 97) The number of weeds that remain living after a specific chemical has been applied averages 1.3 per square yard and follows a Poisson distribution. Based on this, what is the probability that a 3 square yard section will contain less than 4 weeds? A) B) C) D) Answer: A Keywords: Poisson, probability 98) Which of the following statements is true with respect to a Poisson distribution? A) The Poisson distribution is symmetrical when the mean is close to 5. B) The Poisson distribution is more right skewed for smaller values of the mean. C) The variance of the Poisson distribution is equal to the square root of the expected value. D) The Poisson distribution is an example of a continuous probability distribution. Answer: B Keywords: Poisson, skewed 5 28

29 99) The manager of a movie theater has determined that the distribution of customers arriving at the concession stand is Poisson distributed with a standard deviation equal to 2 people per 10 minutes. What is the probability that more than 3 customers arrive during a 10 minute period? A) B) C) D) Answer: B Keywords: Poisson, probability 100) The manager of a movie theater has determined that the distribution of customers arriving at the concession stand is Poisson distributed with a standard deviation equal to 2 people per 10 minutes. What is the probability that 0 customers arrive during a 10 minute period? A) B) C) D) Essentially 0 Answer: B Keywords: Poisson, probability 101) If the standard deviation for a Poisson distribution is known to be 3, the expected value of that Poison distribution is: A) 3 B) about 1.73 C) 9 D) Canʹt be determined without more information. Answer: C Keywords: Poisson, expected value, mean, standard deviation 5 29

30 102) If a distribution is considered to be Poisson with a mean equal to 11, the most frequently occurring value for the random variable will be: A) 10.5 B) 11 C) 10 and 11 D) 22 Answer: C Keywords: Poisson, mean, distribution 103) The hypergeometric probability distribution is used rather than the binomial or the Poisson when: A) the sampling is performed with replacement. B) the sampling is performed without replacement from an infinite population. C) the sampling is performed without replacement from a finite population. D) the sampling is performed with replacement from a finite population. Answer: C Keywords: hypergeometric, sampling, replacement 104) A small city has two taxi companies (A and B). Each taxi company has 5 taxis. A motel has told these companies that they will randomly select a taxi company when one of its customers needs a cab. This morning 3 cabs were needed. Assuming that no one individual taxi can be used more than once, what is the probability that 2 of the cabs selected will be from Company A and the other will be from B? A) B) 0.25 C) D) 0.5 Answer: A Keywords: hypergeometric, probability 5 30

31 105) A local paint store carries 4 brands of paint (W, X, Y, and Z). The store has 5 cans of W, 3 cans of X, 6 cans of Y, and 15 cans of Z, all in white. It is thought that customers have no preference for one of these brands over another. If this is the case, what is the probability that the next 5 customers will select 1 can of W, X, Y and 2 cans of brand Z? A) About.23 B) Approximately.08 C) Over.30 D) 0.25 Answer: B Keywords: hypergeometric, probability 106) The random variable x is the number of customers arriving at the service desk of a local car dealership over an interval of 10 minutes. It is known that the average number of arrivals in 10 minutes is 5.3. The probability that there are less than 3 arrivals in any 10 minutes is: A).0659 B).0948 C).1016 D).1239 Answer: C Keywords: Poisson, distribution 5 31

32 107) Because of bad weather, the number of days next week that the captain of a charter fishing boat can leave port is uncertain. Let x = number of days that the boat is able to leave port per week. The following probability distribution for the variable, x, was determined based on historical data when the weather was poor: x P(x) Based on the probability distribution, what is the expected number of days per week the captain can leave port? A) 3.7 B) 4.5 C) 2.8 D) 1.7 Answer: A Diff:

33 108) The roll of a pair of dice has the following probability distribution, where the random variable is the sum of the values produced by each die: x P(x) 2 1/36 3 2/36 4 3/36 5 4/36 6 5/36 7 6/36 8 5/36 9 4/ / / /36 Calculate the expected value of x. A) 6 B) 7 C) 8 D) 9 Answer: B 5 33

34 109) The roll of a pair of dice has the following probability distribution, where the random variable is the sum of the values produced by each die: x P(x) 2 1/36 3 2/36 4 3/36 5 4/36 6 5/36 7 6/36 8 5/36 9 4/ / / /36 Calculate the variance of x. A) B) C) D) Answer: A 5 34

35 110) The roll of a pair of dice has the following probability distribution, where the random variable is the sum of the values produced by each die: x P(x) 2 1/36 3 2/36 4 3/36 5 4/36 6 5/36 7 6/36 8 5/36 9 4/ / / /36 Calculate the standard deviation of x. A) B) C) D) Answer: D 5 35

36 111) The U.S. Census Bureau (Annual Social & Economic Supplement) collects demographics concerning the number of people in families per household. Assume the distribution of the number of people per household is shown in the following table: x P(x) Calculate the expected number of people in families per household in the United States. A) 2.71 B) 3.33 C) 3.51 D) 4.33 Answer: C 112) The U.S. Census Bureau (Annual Social & Economic Supplement) collects demographics concerning the number of people in families per household. Assume the distribution of the number of people per household is shown in the following table: x P(x) Compute the variance and standard deviation of the number of people in families per household. A) Variance=1.6499, standard deviation= B) Variance=1.2845, standard deviation= C) Variance=6.7182, standard deviation= D) Variance=2.5919, standard deviation= Answer: A 5 36

37 113) Jennings Assembly in Hartford, Connecticut, uses a component supplied by a company in Brazil. The component is expensive to carry in inventory and consequently is not always available in stock when requested. Furthermore, shipping schedules are such that the lead time for transportation of the component is not a constant. Using historical records, the manufacturing firm has developed the following probability distribution for the productʹs lead time. The distribution is shown here, where the random variable is the number of days between the placement of the replenishment order and the receipt of the item. x P(x) What is the average lead time for the component? A) B) C) D) Answer: D 5 37

38 114) Jennings Assembly in Hartford, Connecticut, uses a component supplied by a company in Brazil. The component is expensive to carry in inventory and consequently is not always available in stock when requested. Furthermore, shipping schedules are such that the lead time for transportation of the component is not a constant. Using historical records, the manufacturing firm has developed the following probability distribution for the productʹs lead time. The distribution is shown here, where the random variable is the number of days between the placement of the replenishment order and the receipt of the item. x P(x) What is the coefficient of variation for delivery lead time? A) % B) % C) % D) % Answer: B 5 38

39 115) Cramerʹs Bar and Grille in Dallas can seat 130 people at a time. The manager has been gathering data on the number of minutes a party of four spends in the restaurant from the moment they are seated to when they pay the check. Number of Minutes Probability What is the mean number of minutes for a dinner party of four? A) 65.5 B) 67.5 C) 85.5 D) 75.5 Answer: C 116) Cramerʹs Bar and Grille in Dallas can seat 130 people at a time. The manager has been gathering data on the number of minutes a party of four spends in the restaurant from the moment they are seated to when they pay the check. Number of Minutes Probability What is the variance and standard deviation? A) Variance = , standard deviation = B) Variance = , standard deviation = C) Variance = , standard deviation = D) Variance = , standard deviation = Answer: D 5 39

40 117) The manager for State Bank and Trust has recently examined the credit card account balances for the customers of her bank and found that 20% have an outstanding balance at the credit card limit. Suppose the manager randomly selects 15 customers and finds 4 that have balances at the limit. Assume that the properties of the binomial distribution apply. What is the probability of finding 4 customers in a sample of 15 who have ʺmaxed outʺ their credit cards? A) B) C) D) Answer: A Keywords: binomial distribution, probability 118) The manager for State Bank and Trust has recently examined the credit card account balances for the customers of her bank and found that 20% have an outstanding balance at the credit card limit. Suppose the manager randomly selects 15 customers and finds 4 that have balances at the limit. Assume that the properties of the binomial distribution apply. What is the probability that 4 or fewer customers in the sample will have balances at the limit of the credit card? A) B) C) D) Answer: B Keywords: binomial distribution, probability 119) For a binomial distribution with a sample size equal to 10 and a probability of a success equal to 0.30, what is the probability that the sample will contain exactly three successes? Use the binomial formula to determine the probability. A) B) C) D) Answer: C Keywords: binomial distribution, probability 5 40

41 120) If a binomial distribution applies with a sample size of n = 20, find the probability of 5 successes if the probability of a success is A) B) C) D) Answer: C Keywords: binomial distribution, probability 121) If a binomial distribution applies with a sample size of n = 20, find the probability of at least 7 successes if the probability of a success is A) B) C) D) Answer: B Keywords: binomial distribution, probability 122) If a binomial distribution applies with a sample size of n = 20, find the expected value, n = 20, p = A) 2 B) 3 C) 4 D) 5 Answer: C Keywords: binomial distribution, probability 123) If a binomial distribution applies with a sample size of n = 20, find the standard deviation, n = 20, p = A) B) C) D) Answer: A Keywords: binomial distribution, probability 5 41

42 124) Given a binomial distribution with n = 8 and p = 0.40, obtain the mean. A) 2.8 B) 3.2 C) 3.6 D) 4.2 Answer: B Diff: 1 Keywords: binomial distribution, probability 125) Given a binomial distribution with n = 8 and p = 0.40, obtain the standard deviation. A) B) C) D) Answer: B Keywords: binomial distribution, probability 126) Given a binomial distribution with n = 8 and p = 0.40, obtain the probability that the number of successes is larger than the mean. A) B) C) D) Answer: A Keywords: binomial distribution, probability 127) Given a binomial distribution with n = 8 and p = 0.40, obtain the probability that the number of successes is within 2 standard deviations of the mean. A) B) C) D) Answer: D Keywords: binomial distribution, probability 5 42

43 128) Magic Valley Memorial Hospital administrators have recently received an internal audit report that indicates that 15% of all patient bills contain an error of one form or another. After spending considerable effort to improve the hospitalʹs billing process, the administrators are convinced that things have improved. They believe that the new error rate is somewhere closer to 0.05.Suppose that recently the hospital randomly sampled 10 patient bills and conducted a thorough study to determine whether an error exists. It found 3 bills with errors. Assuming that managers are correct that they have improved the error rate to 0.05, what is the probability that they would find 3 or more errors in a sample of 10 bills? A) B) C) D) Answer: A Keywords: binomial distribution, probability 129) Dell Computers receives large shipments of microprocessors from Intel Corp. It must try to ensure the proportion of microprocessors that are defective is small. Suppose Dell decides to test five microprocessors out of a shipment of thousands of these microprocessors. Suppose that if at least one of the microprocessors is defective, the shipment is returned. If Intel Corp.ʹs shipment contains 10% defective microprocessors, calculate the probability the entire shipment will be returned. A) B) C) D) Answer: C Keywords: binomial distribution, probability 130) Dell Computers receives large shipments of microprocessors from Intel Corp. It must try to ensure the proportion of microprocessors that are defective is small. Suppose Dell decides to test five microprocessors out of a shipment of thousands of these microprocessors. Suppose that if at least one of the microprocessors is defective, the shipment is returned. If Intel and Dell agree that Intel will not provide more than 5% defective chips, calculate the probability that the entire shipment will be returned even though only 5% are defective. A) B) C) D) Answer: A Keywords: binomial distribution, probability 5 43

44 131) Dell Computers receives large shipments of microprocessors from Intel Corp. It must try to ensure the proportion of microprocessors that are defective is small. Suppose Dell decides to test five microprocessors out of a shipment of thousands of these microprocessors. Suppose that if at least one of the microprocessors is defective, the shipment is returned. Calculate the probability that the entire shipment will be kept by Dell even though the shipment has 10% defective microprocessors. A) B) C) D) Answer: C Keywords: binomial distribution, probability 132) The mean number of errors per page made by a member of the word processing pool for a large company is thought to be 1.5 with the number of errors distributed according to a Poisson distribution. If three pages are examined, what is the probability that more than 3 errors will be observed? A) B) C) D) Answer: A 133) Arrivals to a bank automated teller machine (ATM) are distributed according to a Poisson distribution with a mean equal to three per 15 minutes.determine the probability that in a given 15 minute segment no customers will arrive at the ATM. A) B) C) D) Answer: D 5 44

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