MULTIPLECHOICE.Choosetheonealternativethatbestcompletesthestatementoranswersthequestion.

1) Iftwoeventsaremutuallyexclusive,whatistheprobabilitythatoneortheotheroccurs?
A) 0
B) 1.00
C) 0.50
D) cannotbedeterminedfromtheinformationgiven
2) IftwoequallylikelyeventsAandBaremutuallyexclusiveandcollectivelyexhaustive,whatistheprobability
thateventAoccurs?
A) 0
B) 1.00
C) 0.50
D) cannotbedeterminedfromtheinformationgiven
3) Iftwoeventsareindependent,whatistheprobabilitythattheybothoccur?
A) 0.50
B) 0
C) 1.00
D) cannotbedeterminedfromtheinformationgiven
4) Abusinessventurecanresultinthefollowingoutcomes(withtheircorrespondingchanceofoccurringin
parentheses):HighlySuccessful(10%),Successful(25%),BreakEven(25%),Disappointing(20%),andHighly
Disappointing(?).Ifthesearetheonlyoutcomespossibleforthebusinessventure,whatisthechancethatthe
businessventurewillbeconsideredHighlyDisappointing?
A) 25%
B) 20%
C) 10%
D) 15%
5) Arecentsurveyofbanksrevealedthefollowingdistributionfortheinterestratebeingchargedonahomeloan
(basedona30yearmortgagewitha10%downpayment).
InterestRate
Probability

7.0%
0.12

7.5%
0.23

8.0%
0.24

8.5%
0.35

>8.5%
0.06

Ifabankisselectedatrandomfromthisdistribution,whatisthechancethattheinterestratechargedona
homeloanwillexceed8.0%?
A) 0.41
B) 0.06
C) 1.00
D) 0.59
6) Theprobabilitythathousesaleswillincreaseinthenext6monthsisestimatedtobe0.25.Theprobabilitythat
theinterestratesonhousingloanswillgoupinthesameperiodisestimatedtobe0.74.Theprobabilitythat
housesalesorinterestrateswillgoupduringthenext6monthsisestimatedtobe0.89.Whatistheprobability
thatbothhousesalesandinterestrateswillincreaseduringthenext6months?
A) 0.185
B) 0.10
C) 0.705
D) 0.90
7) AccordingtoasurveyofAmericanhouseholds,theprobabilitythattheresidentsown2carsifannual
householdincomeisover$25,000is80%.Ofthehouseholdssurveyed,60%hadincomesover$25,000and70%
had2cars.Whatistheprobabilitythattheresidentsofahouseholddonotown2carsandhaveanincomeover
$25,000ayear?
A) 0.48
B) 0.12
C) 0.22
D) 0.18

8) Acompanyhas2machinesthatproducewidgets.Anoldermachineproduces23%defectivewidgets,whilethe
newmachineproducesonly8%defectivewidgets.Inaddition,thenewmachineproduces3timesasmany
widgetsastheoldermachinedoes.Givenarandomlychosenwidgetwastestedandfoundtobedefective,
whatistheprobabilityitwasproducedbythenewmachine?
A) 0.489
B) 0.15
C) 0.511
D) 0.08
TABLE41
MothersAgainstDrunkDrivingisaveryvisiblegroupwhosemainfocusistoeducatethepublicabouttheharmcausedby
drunkdrivers.Astudywasrecentlydonethatemphasizedtheproblemweallfacewithdrinkinganddriving.Fourhundred
accidentsthatoccurredonaSaturdaynightwereanalyzed.Twoitemsnotedwerethenumberofvehiclesinvolvedand
whetheralcoholplayedaroleintheaccident.Thenumbersareshownbelow:
NumberofVehicles
Involved
Didalcoholplayarole? 1 2 3 Totals
Yes
50 100 20
170
No
25
175
30
230
Totals
75
275
50
400
9) ReferringtoTable41,whatproportionofaccidentsinvolvedmorethanonevehicle?
A) 275/400or68.75%
B) 325/400or81.25%
C) 75/400or18.75%

D) 50/400or12.5%

10) ReferringtoTable41,whatproportionofaccidentsinvolvedalcoholandasinglevehicle?
A) 195/400or48.75%
B) 245/400or61.25%
C) 25/400or6.25%
D) 50/400or12.5%
11) ReferringtoTable41,whatproportionofaccidentsinvolvedalcoholorasinglevehicle?
A) 245/400or61.25%
B) 195/400or48.75%
C) 25/400or6.25%
D) 50/400or12.5%
12) ReferringtoTable41,giventhatmultiplevehicleswereinvolved,whatproportionofaccidentsinvolved
alcohol?
A) 120/400or30%
B) 120/170or70.59%
C) 120/325or36.92%
D) 120/230or52.17%
13) ReferringtoTable41,giventhat3vehicleswereinvolved,whatproportionofaccidentsinvolvedalcohol?
A) 20/170or11.77%
B) 20/30or66.67%
C) 20/400or5%
D) 20/50or40%
14) ReferringtoTable41,giventhatalcoholwasnotinvolved,whatproportionoftheaccidentsweremultiple
vehicle?
A) 50/170or29.41%
B) 120/170or70.59%
C) 25/230or10.87%
D) 205/230or89.13%
15) Acampusprogramevenlyenrollsundergraduateandgraduatestudents.Ifarandomsampleof4studentsis
selectedfromtheprogramtobeinterviewedabouttheintroductionofanewfastfoodoutletontheground
floorofthecampusbuilding,whatistheprobabilitythatall4studentsselectedareundergraduatestudents?
A) 0.0625
B) 1.00
C) 0.0256
D) 0.16
16) Wheneverp=0.1andnissmall,thebinomialdistributionwillbe
A) symmetric.
B) leftskewed.
C) rightskewed.

D) noneoftheabove

17) IftheoutcomesofarandomvariablefollowaPoissondistribution,thentheir
A) meanequalsthestandarddeviation.
B) medianequalsthevariance.
C) meanequalsthevariance.
D) medianequalsthestandarddeviation.
18) Astudywasrecentlydoneinwhich500peoplewereaskedtoindicatetheirpreferencesforoneofthree
products.Thefollowingtableshowsthebreakdownoftheresponsesbygenderoftherespondents.
ProductPreference
A
B
C
80
20
10
200
70
120

Gender
Male
Female

Basedonthesedata,theprobabilitythatapersoninthepopulationwillpreferproductAcanbeassessedas:
A) 0.56
B) 0.18
C) 0.286
D) 0.16
19) Alaborders100ratsaweekforeachofthe52weeksintheyearforexperimentsthatthelabconducts.Prices
for100ratsfollowthefollowingdistribution:
Price:
Probability:

$10.00
0.35

$12.50
0.40

$15.00
0.25

Howmuchshouldthelabbudgetfornextyearsratordersbe,assumingthisdistributiondoesnotchange?
A) $650
B) $520
C) $637
D) $780
20) Apackagedeliveryserviceclaimsthatnomorethan5percentofallpackagesarriveattheaddresslate.
Assumingthattheconditionsforthebinomialhold,ifasampleofsize10packagesisrandomlyselectedand
the5percentrateholds,whatistheprobabilitythatmorethan2packageswillbedeliveredlate?
A) 0.0862
B) 0.0105
C) 0.0746
D) 0.0116
21) ThenumberofvisibledefectsonaproductcontaineristhoughttobePoissondistributedwithameanequalto
3.5.Basedonthis,theprobabilitythat2containerswillcontainatotaloflessthan2defectsis:
A) 0.0073.
B) 0.1359.
C) 0.0223.
D) 0.1850.
22) Asmallcityhastwotaxicompanies(AandB).Eachtaxicompanyhas5taxis.Amotelhastoldthese
companiesthattheywillrandomlyselectataxicompanywhenoneofitscustomersneedsacab.Thismorning
3cabswereneeded,assumingthatnooneindividualtaxicanbeusedmorethanonce,whatistheprobability
that2ofthecabsselectedwillbefromCompanyAandtheotherwillbefromB?
A) 0.583
B) 0.25
C) 0.5
D) 0.417
23) Thirtysixofthestaffof80teachersatalocalintermediateschoolarecertifiedinCardioPulmonary
Resuscitation(CPR).In180daysofschool,abouthowmanydayscanweexpectthattheteacheronbusduty
willlikelybecertifiedinCPR?
A) 65days
B) 5days
C) 45days
D) 81days
24) Aprobabilitydistributionisanequationthat
A) assignsavaluetothevariabilityinthesamplespace.
B) associatesaparticularprobabilityofoccurrencewitheachoutcomeinthesamplespace.
C) assignsavaluetothecenterofthesamplespace.
D) measuresoutcomesandassignsvaluesofX tothesimpleevents.

25) Whichofthefollowingaboutthebinomialdistributionisnot atruestatement?

A) Eachoutcomeisindependentoftheother.
B) Therandomvariableofinterestiscontinuous.
C) Eachoutcomemaybeclassifiedaseithereventofinterestornoteventofinterest.
D) Theprobabilityofeventofinterestmustbeconstantfromtrialtotrial.
26) Whattypeofprobabilitydistributionwillmostlikelybeusedtoanalyzethenumberofchocolatechippartsper
cookieinthefollowingproblem?
ThequalitycontrolmanagerofMarilynsCookiesisinspectingabatchofchocolatechipcookies.Whenthe
productionprocessisincontrol,theaveragenumberofchocolatechippartspercookieis6.0.Themanageris
interestedinanalyzingtheprobabilitythatanyparticularcookiebeinginspectedhasfewerthan5.0chipparts.
A) Poissondistribution
B) hypergeometricdistribution
D) noneoftheabove
C) binomialdistribution
27) IfeventAandeventBcannotoccuratthesametime,theneventsA andB aresaidtobe
A) statisticallyindependent.
B) collectivelyexhaustive.
C) mutuallyexclusive.
D) noneoftheabove
28) Thecollectionofallpossibleeventsiscalled
A) asimpleprobability.
C) thenullset.

B) asamplespace.
D) ajointprobability.

29) Themethodofprobabilityassessmentthatreliesonanexaminationofhistoricaldatafromsimilarsituationsis:
A) historicalassessment.
C) classicalassessment.

B) subjectiveassessment.
D) relativefrequencyofoccurrence.

30) HarrisonWaterSportshasthreeretailoutlets:Seattle,Portland,andPhoenix.TheSeattlestoredoes50percent
ofthetotalsalesinayear,whilethePortlandstoredoes35percentofthetotalsales.Furtheranalysisindicates
thatofthesalesinSeattle,20percentareinboataccessories.ThepercentageofboataccessoriesatthePortland
storeis30andthepercentageis25atthePhoenixstore.Overall,theprobabilitythatasalebyHarrisonWater
Sportswillbeforaboataccessoryis:
A) 0.2425.
B) 0.75.
C) 0.105.
D) Noneoftheabove.

AnswerKey
Testname:120MID2

1) D
2) C
3) D
4) B
5) A
6) B
7) B
8) C
9) B
10) D
11) B
12) C
13) D
14) D
15) A
16) C
17) C
18) A
19) C
20) D
21) A
22) D
23) D
24) B
25) B
26) A
27) C
28) B
29) D
30) A