DOANE - STAT - Chap 006

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The text discusses different types of discrete probability distributions and their properties as well as rules for transforming random variables.

A discrete random variable is a variable that can take on a countable number of distinct values. It is used to model random phenomena that occur in countable units.

Some examples of discrete probability distributions discussed are the binomial, Poisson, hypergeometric, and geometric distributions.

Chapter 06

Discrete Probability Distributions

True / False Questions


1. A random variable is a function or rule that assigns a numerical value
to each outcome in the sample space of a stochastic (chance)
experiment.
True

False

2. A discrete random variable has a countable number of distinct values.


True

False

3. The expected value of a discrete random variable E(X) is the sum of all
X values weighted by their respective probabilities.
True

False

4. A discrete distribution can be described by its probability density


function (PDF) or by its cumulative distribution function (CDF).
True

False

5. A random variable may be discrete or continuous, but not both.


True

False

6. To describe the number of blemishes per sheet of white bond paper,


we would use a discrete uniform distribution.
True

False

7. The outcomes for the sum of two dice can be described as a discrete
uniform distribution.
True

False

8. A discrete binomial distribution is skewed right when > .50.


True

False

9. When = .70 the discrete binomial distribution is negatively skewed.


True

False

10 The Poisson distribution describes the number of occurrences within a


. randomly chosen unit of time or space.
True

False

11 The Poisson distribution can be skewed either left or right, depending


. on .
True

False

12 Although the shape of the Poisson distribution is positively skewed, it


. becomes more nearly symmetric as its mean becomes larger.
True

False

13 As a rule of thumb, the Poisson distribution can be used to approximate


. a binomial distribution when n 20 and .05.
True

False

14 The hypergeometric distribution is skewed right.


.
True False
15 The hypergeometric distribution assumes that the probability of a
. success remains the same from one trial to the next.
True

False

16 The hypergeometric distribution is not applicable if sampling is done


. with replacement.
True

False

17 As a rule of thumb, the binomial distribution can be used to


. approximate the hypergeometric distribution whenever the population
is at least 20 times as large as the sample.
True

False

18 An example of a geometric random variable is the number of pine


. trees with pine beetle infestation in a random sample of 15 pine trees
in Colorado.
True

False

19 Calculating the probability of getting three aces in a hand of five cards


. dealt from a deck of 52 cards would require the use of a
hypergeometric distribution.
True

False

20 The Poisson distribution is appropriate to describe the number of


. babies born in a small hospital on a given day.
True

False

21 The gender of a randomly chosen unborn child is a Bernoulli event.


.
True False
22 The Poisson distribution has only one parameter.
.
True False
23 The standard deviation of a Poisson random variable is the square root
. of its mean.
True

False

24 Customer arrivals per unit of time would tend to follow a binomial


. distribution.
True

False

25 The two outcomes (success, failure) in the Bernoulli model are equally
. likely.
True

False

26 The expected value of a random variable is its mean.


.
True False

Multiple Choice Questions


27 A discrete probability distribution:
.
A. is a listing of all possible values of the random variable.
B. assigns a probability to each possible value of the random variable.
C. can assume values between -1 and +1.
D. is independent of the parameters of the distribution.
28 The number of male babies in a sample of 10 randomly chosen babies
. is a:

A.
B.
C.
D.

continuous random variable.


Poisson random variable.
binary random variable.
binomial random variable.

29 A discrete random variable:


.
A. can be treated as continuous when it has a large range of values.
B.
cannot be treated as continuous.
C.
is best avoided if at all possible.
D.
is usually uniformly distributed.

30 Which is not a discrete random variable?


.
A. The number of defects in a 4 8 sheet of plywood
B. The number of female passengers who board a plane
C. The time until failure of a vehicle headlamp
D. The number of correct answers on a statistics exam
31 Which is a not a discrete random variable?
.
A.
B.
C.
D.

The number of births in a hospital on a given day


The number of fives obtained in four rolls of a die
The hourly earnings of a call center employee in Boston
The number of applicants applying for a civil service job

32 Which statement is incorrect?


.
A. The Poisson distribution is always skewed right.
B. The binomial distribution may be skewed left or right.
C. The discrete uniform distribution is always symmetric.
D. The hypergeometric distribution is symmetric.
33 The random variable X is the number of shots it takes before you make
. the first free throw in basketball. Assuming the probability of success
(making a free throw) is constant from trial to trial, what type of
distribution does X follow?

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

34 Which probability model is most nearly appropriate to describe the


. number of burned-out fluorescent tubes in a classroom with 12
fluorescent tubes, assuming a constant probability of a burned-out
tube?

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

35 Which distribution is most nearly appropriate to describe the number of


. fatalities in Texas in a given year due to poisonous snakebites?

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

36 Which model would you use to describe the probability that a call. center operator will make the first sale on the third call, assuming a
constant probability of making a sale?

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

37 In a randomly chosen week, which probability model would you use to


. describe the number of accidents at the intersection of two streets?

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

38 Which model best describes the number of nonworking web URLs


. ("This page cannot be displayed") you encounter in a randomly chosen
minute while surfing websites for Florida vacation rental condos?

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

39 Which probability model would you use to describe the number of


. damaged printers in a random sample of 4 printers taken from a
shipment of 28 printers that contains 3 damaged printers?

A.
B.
C.
D.

Poisson
Hypergeometric
Binomial
Uniform

40 Which model best describes the number of incorrect fare quotations by


. a well-trained airline ticket agent between 2 p.m. and 3 p.m. on a
particular Thursday.

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

41 Which model best describes the number of blemishes per sheet of


. white bond paper?

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

42 To ensure quality, customer calls for airline fare quotations are


. monitored at random. On a particular Thursday afternoon, ticket agent
Bob gives 40 fare quotations, of which 4 are incorrect. In a random
sample of 8 of these customer calls, which model best describes the
number of incorrect quotations Bob will make?

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

43 The number of people injured in rafting expeditions on the Colorado


. River on a randomly chosen Thursday in August is best described by
which model?

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

44 On a particular Thursday in August, 40 Grand Canyon tourists enter a


. drawing for a free mule ride. Ten of the entrants are European tourists.
Five entrants are selected at random to get the free mule ride. Which
model best describes the number of European tourists in the random
sample?

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

45 Which model best describes the number of births in a hospital until the
. first twins are delivered?

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

46 On a randomly chosen Wednesday, which probability model would you


. use to describe the number of convenience store robberies in Los
Angeles?

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

47 Which probability model would you use to describe the number of


. customers served at a certain California Pizza Kitchen until the first
customer orders split pea soup?

A.
B.
C.
D.

Binomial
Geometric
Uniform
Poisson

48 Which distribution has a mean of 5?


.
A.
B.
C.

Poisson with = 25.


Binomial with n = 200, = .05
Hypergeometric with N = 100, n = 10, s = 50

49 Of the following, the one that most resembles a Poisson random


. variable is the number of:

A.
B.
C.
D.

heads in 200 flips of a fair coin.


annual power failures at your residence.
face cards in a bridge hand of 13 cards.
defective CDs in a spool containing 15 CDs.

50 A charity raffle prize is $1,000. The charity sells 4,000 raffle tickets.
. One winner will be selected at random. At what ticket price would a
ticket buyer expect to break even?

A.
B.
C.
D.

$0.50
$0.25
$0.75
$1.00

51 A die is rolled. If it rolls to a 1, 2, or 3 you win $2. If it rolls to a 4, 5, or


. 6 you lose $1. Find the expected winnings.

A.
B.
C.
D.

$0.50
$3.00
$1.50
$1.00

52 A fair die is rolled. If it comes up 1 or 2 you win $2. If it comes up 3, 4,


. 5, or 6 you lose $1. Find the expected winnings.

A.
B.
C.
D.

$0.00
$1.00
$0.50
$0.25

53 A carnival has a game of chance: a fair coin is tossed. If it lands heads


. you win $1.00 and if it lands tails you lose $0.50. How much should a
ticket to play this game cost if the carnival wants to break even?

A.
B.
C.
D.

$0.25
$0.50
$0.75
$1.00

54 Ephemeral Services Corporation (ESCO) knows that nine other


. companies besides ESCO are bidding for a $900,000 government
contract. Each company has an equal chance of being awarded the
contract. If ESCO has already spent $100,000 in developing its bidding
proposal, what is its expected net profit?

A.
B.
C.
D.

$100,000
$90,000
-$10,000
$0

55 The discrete random variable X is the number of students that show up


. for Professor Smith's office hours on Monday afternoons. The table
below shows the probability distribution for X. What is the expected
value E(X) for this distribution?

A.
B.
C.
D.

1.2
1.0
1.5
2.0

56 The discrete random variable X is the number of students that show up


. for Professor Smith's office hours on Monday afternoons. The table
below shows the probability distribution for X. What is the probability
that at least 1 student comes to office hours on any given Monday?

A.
B.
C.
D.

.30
.40
.50
.60

57 The discrete random variable X is the number of students that show up


. for Professor Smith's office hours on Monday afternoons. The table
below shows the probability distribution for X. What is the probability
that fewer than 2 students come to office hours on any given Monday?

A.
B.
C.
D.

.10
.40
.70
.90

58 The discrete random variable X is the number of passengers waiting at


. a bus stop. The table below shows the probability distribution for X.
What is the expected value E(X) for this distribution?

A.
B.
C.
D.

1.1
1.3
1.7
1.9

59 Given the following probability distribution, what is the expected value


. of the random variable X?

A.
B.
C.
D.

175
150
200
205

60 Which of the following characterizes a Bernoulli process?


.
A. A random experiment that has only two outcomes.
B. The probability of "success" varies with each trial.
C. Either outcome has the same chance of occurrence.
D. The "success" must be a desirable outcome.
61 The binomial distribution describes the number of:
.
A. trials to obtain the first "success" in a Bernoulli process.
B. trials to obtain n "successes" in a Bernoulli process.
C. "successes" or "failures" in a Bernoulli process.
D.
"successes" in n Bernoulli trials.
62 Which of the following is not a requirement of a binomial distribution?
.
A.
B.
C.
D.

Constant probability of success


Only two possible Bernoulli outcomes
Fixed number of trials
Equally likely outcomes

63 The binomial distribution is symmetrical when:


.
A.
B.
C.
D.

= 1 and 1 - = 0.
= and 1 - = .
= and 1 - = .
= 0 and 1 - = 1.

64 The variance will reach a maximum in a binomial distribution when:


.
A.
B.
C.
D.

= 1 and 1 - = 0.
= and 1 - = .
= and 1 - = .
= 0 and 1 - = 1.

65 Which distribution is most strongly right-skewed?


.
A.
B.
C.
D.

Binomial with n = 50, = .70


Binomial with n = 50, = .90
Binomial with n = 50, = .40
Binomial with n = 50, = .10

66 A random variable is binomially distributed with n = 16 and = .40.


. The expected value and standard deviation of the variables are:

A.
B.
C.
D.

2.00 and 1.24


4.80 and 4.00
6.40 and 1.96
2.00 and 1.20

67 The expected value (mean) of a binomial variable is 15. The number of


. trials is 20. The probability of "success" is:

A.
B.
C.
D.

.25
.50
.75
.30

68 If 90 percent of automobiles in Orange County have both headlights


. working, what is the probability that in a sample of eight automobiles,
at least seven will have both headlights working?

A.
B.
C.
D.

.6174
.3826
.8131
.1869

69 In Quebec, 90 percent of the population subscribes to the Roman


. Catholic religion. In a random sample of eight Quebecois, find the
probability that the sample contains at least five Roman Catholics.

A.
B.
C.
D.

.0050
.0331
.9950
.9619

70 Hardluck Harry has a batting average of .200 (i.e., a 20 percent chance


. of a hit each time he's at bat). Scouts for a rival baseball club secretly
observe Harry's performance in 12 random times at bat. What is the
probability that Harry will get more than 2 hits?

A.
B.
C.
D.

.2055
.2362
.7946
.4417

71 The probability that a visitor to an animal shelter will adopt a dog is .


. 20. Out of nine visits, what is the probability that at least one dog will
be adopted?

A.
B.
C.
D.

.8658
.3020
.5639
.1342

72 Based on experience, 60 percent of the women who request a


. pregnancy test at a certain clinic are actually pregnant. In a random
sample of 12 women, what is the probability that at least 10 are
pregnant?

A.
B.
C.
D.

.0639
.1424
.0196
.0835

73 If 5 percent of automobiles in Oakland County have one burned-out


. headlight, what is the probability that, in a sample of 10 automobiles,
none will have a burned-out headlight?

A.
B.
C.
D.

.5987
.3151
.0116
.1872

74 Jankord Jewelers permits the return of their diamond wedding rings,


. provided the return occurs within two weeks. Typically, 10 percent are
returned. If eight rings are sold today, what is the probability that
fewer than three will be returned?

A.
B.
C.
D.

.9950
.9619
.0331
.1488

75 The probability that an Oxnard University student is carrying a


. backpack is .70. If 10 students are observed at random, what is the
probability that fewer than 7 will be carrying backpacks?

A.
B.
C.
D.

.3504
.2001
.6177
.2668

76 An insurance company is issuing 16 car insurance policies. Suppose


. the probability for a claim during a year is 15 percent. If the binomial
probability distribution is applicable, then the probability that there will
be at least two claims during the year is equal to:

A.
B.
C.
D.

.5615
.2775
.7161
.0388

77 A random variable X is distributed binomially with n = 8 and = 0.70.


. The standard deviation of the variable X is approximately:

A.
B.
C.
D.

0.458
2.828
1.680
1.296

78 Suppose X is binomially distributed with n = 12 and = .20. The


. probability that X will be less than or equal to 3 is:

A.
B.
C.
D.

.5584
.7946
.2362
.7638

79 Which Excel function would generate a single random X value for a


. binomial random variable with parameters n = 16 and = .25?

A.
B.
C.
D.

=BINOM.DIST(RAND(), 16, .25, 0)


=BINOM.DIST(0, 16, .25, RAND())
=BINOM.INV(16, .25, RAND())
=BINOM.INV(0, 16, .25, RAND())

80 A network has three independent file servers, each with 90 percent


. reliability. The probability that the network will be functioning correctly
(at least one server is working) at a given time is:

A.
B.
C.
D.

99.9 percent.
97.2 percent.
95.9 percent.
72.9 percent.

81 Which statement concerning the binomial distribution is correct?


.
A. Its PDF covers all integer values of X from 0 to n.
B. Its PDF is the same as its CDF when = .50.
C. Its CDF shows the probability of each value of X.
D. Its CDF is skewed right when < .50.
82 Historically, 2 percent of the stray dogs in Southfield are unlicensed.
. On a randomly chosen day, the Southfield city animal control officer
picks up seven stray dogs. What is the probability that fewer than two
will be unlicensed?

A.
B.
C.
D.

.8681
.9921
.3670
.0076

83 The domain of X in a Poisson probability distribution is discrete and can


. include:

A.
B.
C.
D.

any real X value.


any integer X value.
any nonnegative integer X value.
any X value except zero.

84 On Saturday morning, calls arrive at TicketMaster at a rate of 108 calls


. per hour. What is the probability of fewer than three calls in a randomly
chosen minute?

A.
B.
C.
D.

.1607
.8913
.2678
.7306

85 On average, a major earthquake (Richter scale 6.0 or above) occurs


. three times a decade in a certain California county. Find the probability
that at least one major earthquake will occur within the next decade.

A.
B.
C.
D.

.7408
.1992
.1494
.9502

86 On average, an IRS auditor discovers 4.7 fraudulent income tax returns


. per day. On a randomly chosen day, what is the probability that she
discovers fewer than two?

A.
B.
C.
D.

.0518
.0427
.1005
.1523

87 On a Sunday in April, dog bite victims arrive at Carver Memorial


. Hospital at a historical rate of 0.6 victim per day. On a given Sunday in
April, what is the probability that exactly two dog bite victims will
arrive?

A.
B.
C.
D.

.0875
.0902
.0988
.0919

88 If tubing averages 16 defects per 100 meters, what is the probability of


. finding exactly 2 defects in a randomly chosen 10-meter piece of
tubing?

A.
B.
C.
D.

.8795
.2674
.3422
.2584

89 Cars are arriving at a toll booth at a rate of four per minute. What is
. the probability that exactly eight cars will arrive in the next two
minutes?

A.
B.
C.
D.

0.0349
0.1396
0.9666
0.0005

90 Arrival of cars per minute at a toll booth may be characterized by the


. Poisson distribution if:

A.
the arrivals are independent.
B. no more than one arrival can occur in a minute.
C. there is only one lane leading to the booth.
D.
the mean arrival rate is at least 30.
91 The coefficient of variation for a Poisson distribution with = 5 is:
.
A.
B.
C.
D.

35.2 percent.
58.9 percent.
44.7 percent.
31.1 percent.

92 The coefficient of variation for a Poisson distribution with = 4 is:


.
A.
B.
C.
D.

35.2 percent.
58.9 percent.
50.0 percent.
26.4 percent.

93 For which binomial distribution would a Poisson approximation be


. unacceptable?

A.
B.
C.
D.

n = 30, = 0.02
n = 50, = 0.03
n = 200, = 0.10
n = 500, = 0.01

94 For which binomial distribution would a Poisson approximation be


. acceptable?

A.
B.
C.
D.

n = 60, = 0.08
n = 100, = 0.15
n = 40, = 0.03
n = 20, = 0.20

95 For which binomial distribution would a Poisson approximation not be


. acceptable?

A.
B.
C.
D.

n = 35, = 0.07
n = 95, = 0.01
n = 80, = 0.02
n = 50, = 0.03

96 The true proportion of accounts receivable with some kind of error is .


. 02 for Venal Enterprises. If an auditor randomly samples 200 accounts
receivable, what is the approximate Poisson probability that fewer than
two will contain errors?

A.
B.
C.
D.

.1038
.0916
.1465
.0015

97 The probability that a rental car will be stolen is 0.0004. If 3500 cars
. are rented, what is the approximate Poisson probability that 2 or fewer
will be stolen?

A.
B.
C.
D.

.3452
.2417
.5918
.8335

98 The probability that a customer will use a stolen credit card to make a
. purchase at a certain Target store is 0.003. If 400 purchases are made
in a given day, what is the approximate Poisson probability that 4 or
fewer will be with stolen cards?

A.
B.
C.
D.

.0053
.0076
.9923
.0555

99 The probability that a ticket holder will miss a flight is .005. If 180
. passengers take the flight, what is the approximate Poisson probability
that at least 2 will miss the flight?

A.
B.
C.
D.

.9372
.0628
.1647
.2275

100 The probability that a certain daily flight's departure from ORD to LAX
.
is delayed is .02. Over six months, this flight departs 180 times. What
is the approximate Poisson probability that it will be delayed fewer
than 2 times?

A.
B.
C.
D.

.4471
.3028
.1257
.1771

101 If X is a discrete uniform random variable ranging from 0 to 12, find


.
P(X 10).

A.
B.
C.
D.

.1126
.1666
.2308
.2500

102 If X is a discrete uniform random variable ranging from one to eight,


.
find P(X < 6).

A.
B.
C.
D.

.6250
.5000
.7500
.3750

103 If X is a discrete uniform random variable ranging from one to eight,


.
its mean is:

A.
B.
C.
D.

4.0
4.5
5.0
5.5

104 If X is a discrete uniform random variable ranging from 12 to 24, its


.
mean is:

A.
B.
C.
D.

18.5.
16.0.
18.0.
19.5.

105 At Ersatz University, the graduating class of 480 includes 96 guest


.
students from Latvia. A sample of 10 students is selected at random
to attend a dinner with the Board of Governors. Use the binomial
model to obtain the approximate hypergeometric probability that the
sample contains at least three Latvian students.

A.
B.
C.
D.

.3222
.1209
.8791
.6778

106 There are 90 passengers on a commuter flight from SFO to LAX, of


.
whom 27 are traveling on business. In a random sample of five
passengers, use the binomial model to find the approximate
hypergeometric probability that there is at least one business
passenger.

A.
B.
C.
D.

.3087
.1681
.3602
.8319

107 Use the binomial model to find the approximate hypergeometric


.
probability of at least two damaged flash drives in a sample of five
taken from a shipment of 150 that contains 30 damaged flash drives.

A.
B.
C.
D.

0.9421
0.0579
0.7373
0.2627

108 On a particular day, 112 of 280 passengers on a particular DTW-LAX


.
flight used the e-ticket check-in kiosk to obtain boarding passes. In a
random sample of eight passengers, use the binomial model to find
the approximate hypergeometric probability that four will have used
the e-ticket check-in kiosk to obtain boarding passes.

A.
B.
C.
D.

.2322
.8263
.2926
.5613

109 A clinic employs nine physicians. Five of the physicians are female.
.
Four patients arrive at once. Assuming the doctors are assigned
randomly to patients, what is the probability that all of the assigned
physicians are female?

A.
B.
C.
D.

.0397
.0295
.0808
.0533

110 There is a .02 probability that a customer's Visa charge will be


.
rejected at a certain Target store because the transaction exceeds the
customer's credit limit. What is the probability that the first such
rejection occurs on the third Visa transaction?

A.
B.
C.
D.

.0192
.0025
.0247
.0200

111 Ten percent of the corporate managers at Axolotl Industries majored


.
in humanities. What is the probability that the first humanities major
is the fifth manager you meet?

A.
B.
C.
D.

.0656
.8561
.5904
.4095

112 Ten percent of the corporate managers at Axolotl Industries majored


.
in humanities. What is the expected number of managers to be
interviewed until finding the first one with a humanities major?

A.
B.
C.
D.

15
20
10
17

113 When you send out a resume, the probability of being called for an
.
interview is .20. What is the probability that the first interview occurs
on the fourth resume that you send out?

A.
B.
C.
D.

.4096
.1024
.2410
.0016

114 When you send out a resume, the probability of being called for an
.
interview is .20. What is the expected number of resumes you send
out until you get the first interview?

A.
B.
C.
D.

5
7
10
12

115 When you send out a resume, the probability of being called for an
.
interview is .20. What is the probability that you get your first
interview within the first five resumes that you send out?

A.
B.
C.
D.

.6723
.1024
.2410
.0016

116 There is a .02 probability that a customer's Visa charge will be


.
rejected at a certain Target store because the transaction exceeds the
customer's credit limit. What is the probability that the first such
rejection occurs within the first 20 Visa transactions?

A.
B.
C.
D.

.1362
.4000
.3324
.4538

117 There is a .02 probability that a customer's Visa charge will be


.
rejected at a certain Target store because the transaction exceeds the
customer's credit limit. What is the expected number of Visa
transactions until the first one is rejected?

A.
B.
C.
D.

10
20
50
98

118 The geometric distribution best describes:


.
A. the number of successes in a sample of n trials.
B. the number of trials until the first success.
C. the number of events in a given unit of time.
D. the process of sampling without replacement.
119 The CDF for the geometric distribution shows:
.
A. the probability of success in a random experiment consisting of n
independent trials.
B. the probability that the first success will occur within a given
number of trials.
C. the probability that no success will be obtained in a given Bernoulli
trial.
D. the probability of more than one success in the first n trials.
120 If the probability of success is .25, what is the probability of obtaining
.
the first success within the first three trials?

A.
B.
C.
D.

.4218
.5781
.1406
.2228

121 If the probability of success is .30, what is the probability of obtaining


.
the first success within the first five trials?

A.
B.
C.
D.

.0024
.8319
.1681
.9976

122 A project has three independent stages that must be completed in


.
sequence. The time to complete each stage is a random variable. The
expected times to complete the stages are 1 = 23, 2 = 11, 3 = 17.
The expected project completion time is:

A.
B.
C.
D.

51.
23.
40.
32.

123 A project has 3 independent stages that must be completed in


.
sequence. The time to complete each stage is a random variable. The
standard deviations of the completion times for the stages are 1 = 5,
2 = 4, 3 = 6. The standard deviation of the overall project
completion time is:

A.
B.
C.
D.

8.77
15.0
14.2
9.24

124 A stock portfolio consists of two stocks X and Y. Their daily closing
.
prices are independent random variables with standard deviations X
= 2.51 and Y = 5.22. What is the standard deviation of the sum of
the closing prices of these two stocks?

A.
B.
C.
D.

33.55
6.48
7.73
5.79

125 A stock portfolio consists of two stocks X and Y. Their daily closing
.
prices are correlated random variables with variances X2 = 3.51 and
Y2 = 5.22, and covariance XY = -1.55. What is the standard deviation
of the sum of the closing prices of these two stocks?

A.
B.
C.
D.

5.63
7.18
8.73
2.68

126 The expected value of a random variable X is 140 and the standard
.
deviation is 14. The standard deviation of the random variable Y = 3X
- 10 is:

A.
B.
C.
D.

42
6.48
14
32

127 The expected value of a random variable X is 10 and the standard


.
deviation is 2. The standard deviation of the random variable Y = 2X 10 is:

A.
B.
C.
D.

2
4
-10
-6

Chapter 06 Discrete Probability Distributions Answer Key

True / False Questions


1.

A random variable is a function or rule that assigns a numerical


value to each outcome in the sample space of a stochastic (chance)
experiment.
TRUE
Review definition of random variable.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-01 Define a discrete random variable.
Topic: Discrete Distributions

2.

A discrete random variable has a countable number of distinct


values.
TRUE
Review definition of random variable.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-01 Define a discrete random variable.
Topic: Discrete Distributions

3.

The expected value of a discrete random variable E(X) is the sum of


all X values weighted by their respective probabilities.
TRUE
Review definition of expected value.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Discrete Distributions

4.

A discrete distribution can be described by its probability density


function (PDF) or by its cumulative distribution function (CDF).
TRUE
Review definition of PDF and CDF.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-03 Define probability distribution; PDF; and CDF.
Topic: Discrete Distributions

5.

A random variable may be discrete or continuous, but not both.


TRUE
Review definition of discrete and continuous.
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-01 Define a discrete random variable.
Topic: Discrete Distributions

6.

To describe the number of blemishes per sheet of white bond paper,


we would use a discrete uniform distribution.
FALSE
Not all X values would be equally likely (Poisson distribution would be
better).
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

7.

The outcomes for the sum of two dice can be described as a discrete
uniform distribution.
FALSE
The sum of two uniforms is a triangular distribution, as shown in the
textbook example.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 06-04 Know the mean and variance of a uniform discrete model.
Topic: Uniform Distribution

8.

A discrete binomial distribution is skewed right when > .50.


FALSE
Most outcomes would be on the right, so a longer left tail exists.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

9.

When = .70 the discrete binomial distribution is negatively


skewed.
TRUE
Most outcomes would be on the right, so a longer left tail exists.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

10.

The Poisson distribution describes the number of occurrences within


a randomly chosen unit of time or space.
TRUE
Poisson describes events per unit of time.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

11.

The Poisson distribution can be skewed either left or right, depending


on .
FALSE
Poisson is always right-skewed.
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

12.

Although the shape of the Poisson distribution is positively skewed, it


becomes more nearly symmetric as its mean becomes larger.
TRUE
Although always right-skewed, the Poisson approaches a normal as
the mean increases.
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

13.

As a rule of thumb, the Poisson distribution can be used to


approximate a binomial distribution when n 20 and .05.
TRUE
The Poisson is a better approximation to binomial when n is large
and is small.
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-07 Use the Poisson approximation to the binomial (optional).
Topic: Poisson Distribution

14.

The hypergeometric distribution is skewed right.


FALSE
The hypergeometric is skewed right if s/N < .50 (and conversely).
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution

15.

The hypergeometric distribution assumes that the probability of a


success remains the same from one trial to the next.
FALSE
The point of the hypergeometric is that is not constant.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution

16.

The hypergeometric distribution is not applicable if sampling is done


with replacement.
TRUE
The hypergeometric is used when there is no replacement in
sampling from a finite population
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution

17.

As a rule of thumb, the binomial distribution can be used to


approximate the hypergeometric distribution whenever the
population is at least 20 times as large as the sample.
TRUE
The rule is to use the approximation if n/N < .05.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution

18.

An example of a geometric random variable is the number of pine


trees with pine beetle infestation in a random sample of 15 pine
trees in Colorado.
FALSE
This is a binomial experiment, assuming is constant.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)

19.

Calculating the probability of getting three aces in a hand of five


cards dealt from a deck of 52 cards would require the use of a
hypergeometric distribution.
TRUE
This is a hypergeometric experiment (no replacement).
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution

20.

The Poisson distribution is appropriate to describe the number of


babies born in a small hospital on a given day.
TRUE
Events per unit of time with no clear upper limit.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Poisson Distribution

21.

The gender of a randomly chosen unborn child is a Bernoulli event.


TRUE
Two outcomes (0 or 1).
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Bernoulli Distribution

22.

The Poisson distribution has only one parameter.


TRUE
The one parameter is the mean.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

23.

The standard deviation of a Poisson random variable is the square


root of its mean.
TRUE
Review Poisson model.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

24.

Customer arrivals per unit of time would tend to follow a binomial


distribution.
FALSE
This would be a Poisson (arrivals per unit of time).
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

25.

The two outcomes (success, failure) in the Bernoulli model are


equally likely.
FALSE
The probability of success need not be .50.
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Bernoulli Distribution

26.

The expected value of a random variable is its mean.


TRUE
The mean is another name for expected value.
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Discrete Distributions

Multiple Choice Questions

27.

A discrete probability distribution:

A. is a listing of all possible values of the random variable.


B. assigns a probability to each possible value of the random
variable.
C. can assume values between -1 and +1.
D. is independent of the parameters of the distribution.
A discrete PDF assigns a probability to each X value.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 06-03 Define probability distribution; PDF; and CDF.
Topic: Discrete Distributions

28.

The number of male babies in a sample of 10 randomly chosen


babies is a:

A.
B.
C.
D.

continuous random variable.


Poisson random variable.
binary random variable.
binomial random variable.

Constant probability of success in n trials.


AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Binomial Distribution

29.

A discrete random variable:

A. can be treated as continuous when it has a large range of values.


B.
cannot be treated as continuous.
C.
is best avoided if at all possible.
D.
is usually uniformly distributed.
Review definitions of discrete distributions.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 06-01 Define a discrete random variable.
Topic: Discrete Distributions

30.

Which is not a discrete random variable?

A. The number of defects in a 4 8 sheet of plywood


B. The number of female passengers who board a plane
C. The time until failure of a vehicle headlamp
D. The number of correct answers on a statistics exam
Time is continuous.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-01 Define a discrete random variable.
Topic: Discrete Distributions

31.

Which is a not a discrete random variable?

A.
B.
C.
D.

The number of births in a hospital on a given day


The number of fives obtained in four rolls of a die
The hourly earnings of a call center employee in Boston
The number of applicants applying for a civil service job

Someone's earnings would be more like a continuous measurement.


AACSB: Analytic
Blooms: Apply

Difficulty: 1 Easy
Learning Objective: 06-01 Define a discrete random variable.
Topic: Discrete Distributions

32.

Which statement is incorrect?

A.
B.
C.
D.

The Poisson distribution is always skewed right.


The binomial distribution may be skewed left or right.
The discrete uniform distribution is always symmetric.
The hypergeometric distribution is symmetric.

Review characteristics of the distributions. A hypergeometric is


symmetric only if s/N = .50.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution

33.

The random variable X is the number of shots it takes before you


make the first free throw in basketball. Assuming the probability of
success (making a free throw) is constant from trial to trial, what
type of distribution does X follow?

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

Geometric model describes the number of trials until the first


success.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Geometric Distribution (Optional)

34.

Which probability model is most nearly appropriate to describe the


number of burned-out fluorescent tubes in a classroom with 12
fluorescent tubes, assuming a constant probability of a burned-out
tube?

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

n = 12 Bernoulli trials with fixed probability of success would be a


binomial model.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Binomial Distribution

35.

Which distribution is most nearly appropriate to describe the number


of fatalities in Texas in a given year due to poisonous snakebites?

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

Events per unit of time with no clear upper limit would resemble a
Poisson distribution.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Poisson Distribution

36.

Which model would you use to describe the probability that a callcenter operator will make the first sale on the third call, assuming a
constant probability of making a sale?

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

Geometric describes the number of trials to first success.


AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Geometric Distribution (Optional)

37.

In a randomly chosen week, which probability model would you use


to describe the number of accidents at the intersection of two
streets?

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

Events per unit of time with no clear upper limit would resemble a
Poisson distribution.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Poisson Distribution

38.

Which model best describes the number of nonworking web URLs


("This page cannot be displayed") you encounter in a randomly
chosen minute while surfing websites for Florida vacation rental
condos?

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

Events per unit of time with no clear upper limit would resemble a
Poisson distribution.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Poisson Distribution

39.

Which probability model would you use to describe the number of


damaged printers in a random sample of 4 printers taken from a
shipment of 28 printers that contains 3 damaged printers?

A.
B.
C.
D.

Poisson
Hypergeometric
Binomial
Uniform

Sampling (n = 4 printers) without replacement with known number


of "successes" (s = 3 damaged printers) in the population (N = 28
printers).
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Hypergeometric Distribution

40.

Which model best describes the number of incorrect fare quotations


by a well-trained airline ticket agent between 2 p.m. and 3 p.m. on a
particular Thursday.

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

Events per unit of time with no clear upper limit would resemble a
Poisson distribution.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Poisson Distribution

41.

Which model best describes the number of blemishes per sheet of


white bond paper?

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

Events per unit of area with no clear upper limit would resemble a
Poisson distribution.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Poisson Distribution

42.

To ensure quality, customer calls for airline fare quotations are


monitored at random. On a particular Thursday afternoon, ticket
agent Bob gives 40 fare quotations, of which 4 are incorrect. In a
random sample of 8 of these customer calls, which model best
describes the number of incorrect quotations Bob will make?

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

Sampling (n = 8 calls selected) without replacement with known


number of "successes" (s = 4 incorrect quotes) in the population (N
= 40 quotes).
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Hypergeometric Distribution

43.

The number of people injured in rafting expeditions on the Colorado


River on a randomly chosen Thursday in August is best described by
which model?

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

Independent events per unit of time with no clear upper limit would
be Poisson.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Poisson Distribution

44.

On a particular Thursday in August, 40 Grand Canyon tourists enter


a drawing for a free mule ride. Ten of the entrants are European
tourists. Five entrants are selected at random to get the free mule
ride. Which model best describes the number of European tourists in
the random sample?

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

Sampling (n = 5 tourists selected) without replacement with known


number of "successes" (s = 10 Europeans) in the population (N =
40).
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Hypergeometric Distribution

45.

Which model best describes the number of births in a hospital until


the first twins are delivered?

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

Geometric distribution describes the number of trials until the first


success.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Geometric Distribution (Optional)

46.

On a randomly chosen Wednesday, which probability model would


you use to describe the number of convenience store robberies in
Los Angeles?

A.
B.
C.
D.

Binomial
Poisson
Hypergeometric
Geometric

Events per unit of time with no clear upper limit.


AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Poisson Distribution

47.

Which probability model would you use to describe the number of


customers served at a certain California Pizza Kitchen until the first
customer orders split pea soup?

A.
B.
C.
D.

Binomial
Geometric
Uniform
Poisson

Geometric distribution describes the number of trials until the first


success.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Geometric Distribution (Optional)

48.

Which distribution has a mean of 5?

A.
B.
C.

Poisson with = 25.


Binomial with n = 200, = .05
Hypergeometric with N = 100, n = 10, s = 50

Review model parameters. The hypergeometric mean is ns/N = (10)


(50)/100 = 5.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution

49.

Of the following, the one that most resembles a Poisson random


variable is the number of:

A.
B.
C.
D.

heads in 200 flips of a fair coin.


annual power failures at your residence.
face cards in a bridge hand of 13 cards.
defective CDs in a spool containing 15 CDs.

Independent arrivals per unit of time with no clear upper limit would
be Poisson.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

50.

A charity raffle prize is $1,000. The charity sells 4,000 raffle tickets.
One winner will be selected at random. At what ticket price would a
ticket buyer expect to break even?

A.
B.
C.
D.

$0.50
$0.25
$0.75
$1.00

Expected winning is (1/4000) $1000 = $0.25.


AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Discrete Distributions

51.

A die is rolled. If it rolls to a 1, 2, or 3 you win $2. If it rolls to a 4, 5,


or 6 you lose $1. Find the expected winnings.

A.
B.
C.
D.

$0.50
$3.00
$1.50
$1.00

E(X) = (3/6) $2 + (3/6) (-$1) = $0.50.


AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Discrete Distributions

52.

A fair die is rolled. If it comes up 1 or 2 you win $2. If it comes up 3,


4, 5, or 6 you lose $1. Find the expected winnings.

A.
B.
C.
D.

$0.00
$1.00
$0.50
$0.25

E(X) = (2/6) $2 + (4/6) (-$1) = $0.6667 - $0.6667 = 0.


AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Discrete Distributions

53.

A carnival has a game of chance: a fair coin is tossed. If it lands


heads you win $1.00 and if it lands tails you lose $0.50. How much
should a ticket to play this game cost if the carnival wants to break
even?

A.
B.
C.
D.

$0.25
$0.50
$0.75
$1.00

E(X) = (.5) $1 + (.5) (-$.50) = $0.50 - $0.25 = $0.25.


AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Discrete Distributions

54.

Ephemeral Services Corporation (ESCO) knows that nine other


companies besides ESCO are bidding for a $900,000 government
contract. Each company has an equal chance of being awarded the
contract. If ESCO has already spent $100,000 in developing its
bidding proposal, what is its expected net profit?

A.
B.
C.
D.

$100,000
$90,000
-$10,000
$0

E(X) = (1/9) $900,000 = $100,000. ESCO only can expect to cover


its sunk cost (no profit).
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Discrete Distributions

55.

The discrete random variable X is the number of students that show


up for Professor Smith's office hours on Monday afternoons. The
table below shows the probability distribution for X. What is the
expected value E(X) for this distribution?

A.
B.
C.
D.

1.2
1.0
1.5
2.0

For each X, multiply X time P(X) and sum the values.


AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Discrete Distributions

56.

The discrete random variable X is the number of students that show


up for Professor Smith's office hours on Monday afternoons. The
table below shows the probability distribution for X. What is the
probability that at least 1 student comes to office hours on any given
Monday?

A.
B.
C.
D.

.30
.40
.50
.60

P(X 1) = 1 - P(X = 0) = 1 - .40 = .60.


AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Discrete Distributions

57.

The discrete random variable X is the number of students that show


up for Professor Smith's office hours on Monday afternoons. The
table below shows the probability distribution for X. What is the
probability that fewer than 2 students come to office hours on any
given Monday?

A.
B.
C.
D.

.10
.40
.70
.90

P(X < 2) = P(X = 0) + P(X = 1) = .40 + .30 = .70.


AACSB: Analytic
Blooms: Apply

Difficulty: 1 Easy
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Discrete Distributions

58.

The discrete random variable X is the number of passengers waiting


at a bus stop. The table below shows the probability distribution for
X. What is the expected value E(X) for this distribution?

A.
B.
C.
D.

1.1
1.3
1.7
1.9

For each X, multiply X time P(X) and sum the values.


AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Discrete Distributions

59.

Given the following probability distribution, what is the expected


value of the random variable X?

A.
B.
C.
D.

175
150
200
205

For each X, multiply X time P(X) and sum the values.


AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Discrete Distributions

60.

Which of the following characterizes a Bernoulli process?

A.
B.
C.
D.

A random experiment that has only two outcomes.


The probability of "success" varies with each trial.
Either outcome has the same chance of occurrence.
The "success" must be a desirable outcome.

Review characteristics of the Bernoulli process.


AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Bernoulli Distribution

61.

The binomial distribution describes the number of:

A. trials to obtain the first "success" in a Bernoulli process.


B. trials to obtain n "successes" in a Bernoulli process.
C. "successes" or "failures" in a Bernoulli process.
D.
"successes" in n Bernoulli trials.
Review characteristics of the binomial distribution.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

62.

Which of the following is not a requirement of a binomial


distribution?

A.
B.
C.
D.

Constant probability of success


Only two possible Bernoulli outcomes
Fixed number of trials
Equally likely outcomes

Review characteristics of the binomial distribution.


AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

63.

The binomial distribution is symmetrical when:

A.
B.
C.
D.

= 1 and 1 - = 0.
= and 1 - = .
= and 1 - = .
= 0 and 1 - = 1.

Review characteristics of the binomial distribution.


AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

64.

The variance will reach a maximum in a binomial distribution when:

A.
B.
C.
D.

= 1 and 1 - = 0.
= and 1 - = .
= and 1 - = .
= 0 and 1 - = 1.

Review formula for the binomial distribution standard deviation.


AACSB: Analytic
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

65.

Which distribution is most strongly right-skewed?

A.
B.
C.
D.

Binomial
Binomial
Binomial
Binomial

with
with
with
with

n
n
n
n

=
=
=
=

50,
50,
50,
50,

=
=
=
=

.70
.90
.40
.10

Review characteristics of the binomial distribution.


AACSB: Analytic
Blooms: Understand

Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

66.

A random variable is binomially distributed with n = 16 and = .40.


The expected value and standard deviation of the variables are:

A.
B.
C.
D.

2.00
4.80
6.40
2.00

and
and
and
and

1.24
4.00
1.96
1.20

Review characteristics of the binomial distribution.


AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

67.

The expected value (mean) of a binomial variable is 15. The number


of trials is 20. The probability of "success" is:

A.
B.
C.
D.

.25
.50
.75
.30

Set E(X) = n = (20) = 15 and solve for .


AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

68.

If 90 percent of automobiles in Orange County have both headlights


working, what is the probability that in a sample of eight
automobiles, at least seven will have both headlights working?

A.
B.
C.
D.

.6174
.3826
.8131
.1869

Use Appendix A with n = 8 and = .90 to find P(X 7) or else use


the Excel function =1-BINOM.DIST(6,8,.90,1) = .8131.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

69.

In Quebec, 90 percent of the population subscribes to the Roman


Catholic religion. In a random sample of eight Quebecois, find the
probability that the sample contains at least five Roman Catholics.

A.
B.
C.
D.

.0050
.0331
.9950
.9619

Use Appendix A with n = 8 and = .90 to find P(X 5) or else use


the Excel function =1-BINOM.DIST(4,8,.90,1) = .99498.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

70.

Hardluck Harry has a batting average of .200 (i.e., a 20 percent


chance of a hit each time he's at bat). Scouts for a rival baseball club
secretly observe Harry's performance in 12 random times at bat.
What is the probability that Harry will get more than 2 hits?

A.
B.
C.
D.

.2055
.2362
.7946
.4417

Use Appendix A with n = 12 and = .20 to find P(X 3) or else use


the Excel function =1-BINOM.DIST(2,12,.20,1) = .44165.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

71.

The probability that a visitor to an animal shelter will adopt a dog is .


20. Out of nine visits, what is the probability that at least one dog
will be adopted?

A.
B.
C.
D.

.8658
.3020
.5639
.1342

Use Appendix A with n = 9 and = .20 to find P(X 1) or else use


the Excel function =1-BINOM.DIST(0,9,.20,1) = .865778.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

72.

Based on experience, 60 percent of the women who request a


pregnancy test at a certain clinic are actually pregnant. In a random
sample of 12 women, what is the probability that at least 10 are
pregnant?

A.
B.
C.
D.

.0639
.1424
.0196
.0835

Use Appendix A with n = 12 and = .60 to find P(X 10) or else use
the Excel function =1-BINOM.DIST(9,12,.60,1) = .08344.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

73.

If 5 percent of automobiles in Oakland County have one burned-out


headlight, what is the probability that, in a sample of 10
automobiles, none will have a burned-out headlight?

A.
B.
C.
D.

.5987
.3151
.0116
.1872

Use Appendix A with n = 10 and = .05 find P(X = 0) or else use the
Excel function =BINOM.DIST(0,10,.05,0) = .59874.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

74.

Jankord Jewelers permits the return of their diamond wedding rings,


provided the return occurs within two weeks. Typically, 10 percent
are returned. If eight rings are sold today, what is the probability that
fewer than three will be returned?

A.
B.
C.
D.

.9950
.9619
.0331
.1488

Use Appendix A with n = 8 and = .10 to find P(X < 3) or else use
the Excel function =BINOM.DIST(2,8,.1,1) = .96191.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

75.

The probability that an Oxnard University student is carrying a


backpack is .70. If 10 students are observed at random, what is the
probability that fewer than 7 will be carrying backpacks?

A.
B.
C.
D.

.3504
.2001
.6177
.2668

Use Appendix A with n = 10 and = .70 to find P(X < 7) or else use
the Excel function =BINOM.DIST(6,10,.7,1) = .35039.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

76.

An insurance company is issuing 16 car insurance policies. Suppose


the probability for a claim during a year is 15 percent. If the binomial
probability distribution is applicable, then the probability that there
will be at least two claims during the year is equal to:

A.
B.
C.
D.

.5615
.2775
.7161
.0388

Use Appendix A with n = 16 and = .15 to find P(X 2) or else use


the Excel function =1-BINOM.DIST(1,16,.15,1) = .7161.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

77.

A random variable X is distributed binomially with n = 8 and =


0.70. The standard deviation of the variable X is approximately:

A.
B.
C.
D.

0.458
2.828
1.680
1.296

Use the formula for the binomial standard deviation.


AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

78.

Suppose X is binomially distributed with n = 12 and = .20. The


probability that X will be less than or equal to 3 is:

A.
B.
C.
D.

.5584
.7946
.2362
.7638

Use Appendix A with n = 12 and = .20 to find P(X 3) or else use


the Excel function =BINOM.DIST(3,12,.2,1) = .79457.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

79.

Which Excel function would generate a single random X value for a


binomial random variable with parameters n = 16 and = .25?

A.
B.
C.
D.

=BINOM.DIST(RAND(), 16, .25, 0)


=BINOM.DIST(0, 16, .25, RAND())
=BINOM.INV(16, .25, RAND())
=BINOM.INV(0, 16, .25, RAND())

This is the Excel 2010 function for the inverse of a binomial.


AACSB: Technology
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

80.

A network has three independent file servers, each with 90 percent


reliability. The probability that the network will be functioning
correctly (at least one server is working) at a given time is:

A.
B.
C.
D.

99.9
97.2
95.9
72.9

percent.
percent.
percent.
percent.

Use Appendix A with n = 3 and = .90.


AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

81.

Which statement concerning the binomial distribution is correct?

A. Its PDF covers all integer values of X from 0 to n.


B. Its PDF is the same as its CDF when = .50.
C. Its CDF shows the probability of each value of X.
D. Its CDF is skewed right when < .50.
Review definitions of the binomial distribution. The binomial domain
is X = 0, 1, ..., n.
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-03 Define probability distribution; PDF; and CDF.
Topic: Binomial Distribution

82.

Historically, 2 percent of the stray dogs in Southfield are unlicensed.


On a randomly chosen day, the Southfield city animal control officer
picks up seven stray dogs. What is the probability that fewer than
two will be unlicensed?

A.
B.
C.
D.

.8681
.9921
.3670
.0076

Use Appendix A with n = 7 and = .02.


AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

83.

The domain of X in a Poisson probability distribution is discrete and


can include:

A.
B.
C.
D.

any real X value.


any integer X value.
any nonnegative integer X value.
any X value except zero.

For a Poisson random variable, X = 0, 1, 2, (no upper limit).


AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

84.

On Saturday morning, calls arrive at TicketMaster at a rate of 108


calls per hour. What is the probability of fewer than three calls in a
randomly chosen minute?

A.
B.
C.
D.

.1607
.8913
.2678
.7306

Use Appendix B with = 108/60 = 1.8.


AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

85.

On average, a major earthquake (Richter scale 6.0 or above) occurs


three times a decade in a certain California county. Find the
probability that at least one major earthquake will occur within the
next decade.

A.
B.
C.
D.

.7408
.1992
.1494
.9502

Use Appendix B with = 3.0.


AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

86.

On average, an IRS auditor discovers 4.7 fraudulent income tax


returns per day. On a randomly chosen day, what is the probability
that she discovers fewer than two?

A.
B.
C.
D.

.0518
.0427
.1005
.1523

Use Appendix B with = 4.7.


AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

87.

On a Sunday in April, dog bite victims arrive at Carver Memorial


Hospital at a historical rate of 0.6 victim per day. On a given Sunday
in April, what is the probability that exactly two dog bite victims will
arrive?

A.
B.
C.
D.

.0875
.0902
.0988
.0919

Use Appendix B with = 0.6.


AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

88.

If tubing averages 16 defects per 100 meters, what is the probability


of finding exactly 2 defects in a randomly chosen 10-meter piece of
tubing?

A.
B.
C.
D.

.8795
.2674
.3422
.2584

Use Appendix B with = 16/10 = 1.6.


AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

89.

Cars are arriving at a toll booth at a rate of four per minute. What is
the probability that exactly eight cars will arrive in the next two
minutes?

A.
B.
C.
D.

0.0349
0.1396
0.9666
0.0005

Use Appendix B with = 4.0.


AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

90.

Arrival of cars per minute at a toll booth may be characterized by the


Poisson distribution if:

A.
the arrivals are independent.
B. no more than one arrival can occur in a minute.
C. there is only one lane leading to the booth.
D.
the mean arrival rate is at least 30.
Events per unit of time with no clear upper limit.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

91.

The coefficient of variation for a Poisson distribution with = 5 is:

A.
B.
C.
D.

35.2
58.9
44.7
31.1

percent.
percent.
percent.
percent.

Use the coefficient of variation with standard deviation equal to the


square root of the mean.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

92.

The coefficient of variation for a Poisson distribution with = 4 is:

A.
B.
C.
D.

35.2
58.9
50.0
26.4

percent.
percent.
percent.
percent.

The Poisson standard deviation is the square root of the mean.


AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

93.

For which binomial distribution would a Poisson approximation be


unacceptable?

A.
B.
C.
D.

n = 30, = 0.02
n = 50, = 0.03
n = 200, = 0.10
n = 500, = 0.01

We want n 20 and .05.


AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-07 Use the Poisson approximation to the binomial (optional).
Topic: Poisson Distribution

94.

For which binomial distribution would a Poisson approximation be


acceptable?

A.
B.
C.
D.

n = 60, = 0.08
n = 100, = 0.15
n = 40, = 0.03
n = 20, = 0.20

We want n 20 and .05 for an acceptable Poisson


approximation.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-07 Use the Poisson approximation to the binomial (optional).
Topic: Poisson Distribution

95.

For which binomial distribution would a Poisson approximation not be


acceptable?

A.
B.
C.
D.

n
n
n
n

=
=
=
=

35,
95,
80,
50,

=
=
=
=

0.07
0.01
0.02
0.03

We want n 20 and .05 for an acceptable Poisson


approximation.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-07 Use the Poisson approximation to the binomial (optional).
Topic: Poisson Distribution

96.

The true proportion of accounts receivable with some kind of error


is .02 for Venal Enterprises. If an auditor randomly samples 200
accounts receivable, what is the approximate Poisson probability
that fewer than two will contain errors?

A.
B.
C.
D.

.1038
.0916
.1465
.0015

Since n 20 and .05 we can set = n = (200)(.02) = 4.0 and


use Appendix B to find P(X 1), or else use the Excel cumulative
distribution function =POISSON.DIST(1,4.0,1) = .09158.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-07 Use the Poisson approximation to the binomial (optional).
Topic: Poisson Distribution

97.

The probability that a rental car will be stolen is 0.0004. If 3500 cars
are rented, what is the approximate Poisson probability that 2 or
fewer will be stolen?

A.
B.
C.
D.

.3452
.2417
.5918
.8335

Since n 20 and .05 we can set = n = (3500)(.0004) = 1.4


and use Appendix B to find P(X 2), or else use the Excel
cumulative distribution function =POISSON.DIST(2,1.4,1) = .8335.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-07 Use the Poisson approximation to the binomial (optional).
Topic: Poisson Distribution

98.

The probability that a customer will use a stolen credit card to make
a purchase at a certain Target store is 0.003. If 400 purchases are
made in a given day, what is the approximate Poisson probability
that 4 or fewer will be with stolen cards?

A.
B.
C.
D.

.0053
.0076
.9923
.0555

Since n 20 and .05 we can set = n = (400)(.003) = 1.2 and


use Appendix B, or else use the Excel cumulative distribution
function =POISSON.DIST(4,.003*400,1) = .9923.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-07 Use the Poisson approximation to the binomial (optional).
Topic: Poisson Distribution

99.

The probability that a ticket holder will miss a flight is .005. If 180
passengers take the flight, what is the approximate Poisson
probability that at least 2 will miss the flight?

A.
B.
C.
D.

.9372
.0628
.1647
.2275

Since n 20 and .05 we can set = n = (.005)(180) = 0.9 and


use Appendix B to find P(X 2), or else use the Excel cumulative
distribution function = 1-POISSON.DIST(1,0.9,1) = .2275.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-07 Use the Poisson approximation to the binomial (optional).
Topic: Poisson Distribution

100. The probability that a certain daily flight's departure from ORD to
LAX is delayed is .02. Over six months, this flight departs 180 times.
What is the approximate Poisson probability that it will be delayed
fewer than 2 times?

A.
B.
C.
D.

.4471
.3028
.1257
.1771

Since n 20 and .05 we can set = n = (180)(.02) = 3.6 and


use Appendix B to find P(X 1) or else use the Excel cumulative
distribution function =POISSON.DIST(1,3.6,1) = .12569.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-07 Use the Poisson approximation to the binomial (optional).
Topic: Poisson Distribution

101. If X is a discrete uniform random variable ranging from 0 to 12, find


P(X 10).

A.
B.
C.
D.

.1126
.1666
.2308
.2500

3 out of 13 outcomes (don't forget to count 0 as an outcome).


AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-04 Know the mean and variance of a uniform discrete model.
Topic: Uniform Distribution

102. If X is a discrete uniform random variable ranging from one to eight,


find P(X < 6).

A.
B.
C.
D.

.6250
.5000
.7500
.3750

We count five out of eight outcomes that meet this requirement.


AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-04 Know the mean and variance of a uniform discrete model.
Topic: Uniform Distribution

103. If X is a discrete uniform random variable ranging from one to eight,


its mean is:

A.
B.
C.
D.

4.0
4.5
5.0
5.5

The mean is halfway between the lower and upper limits 1 and 8.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-04 Know the mean and variance of a uniform discrete model.
Topic: Uniform Distribution

104. If X is a discrete uniform random variable ranging from 12 to 24, its


mean is:

A.
B.
C.
D.

18.5.
16.0.
18.0.
19.5.

The mean is halfway between the lower and upper limits 12 and 24.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-04 Know the mean and variance of a uniform discrete model.
Topic: Uniform Distribution

105. At Ersatz University, the graduating class of 480 includes 96 guest


students from Latvia. A sample of 10 students is selected at random
to attend a dinner with the Board of Governors. Use the binomial
model to obtain the approximate hypergeometric probability that the
sample contains at least three Latvian students.

A.
B.
C.
D.

.3222
.1209
.8791
.6778

Since n/N < .05 we can use Appendix A with n = 10 and = 96/480
= .20 to find P(X 3).
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution

106. There are 90 passengers on a commuter flight from SFO to LAX, of


whom 27 are traveling on business. In a random sample of five
passengers, use the binomial model to find the approximate
hypergeometric probability that there is at least one business
passenger.

A.
B.
C.
D.

.3087
.1681
.3602
.8319

Since n/N < .05 we can use Appendix A with n = 5 and = 27/90 = .
30 to find P(X 1).
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution

107. Use the binomial model to find the approximate hypergeometric


probability of at least two damaged flash drives in a sample of five
taken from a shipment of 150 that contains 30 damaged flash
drives.

A.
B.
C.
D.

0.9421
0.0579
0.7373
0.2627

Since n/N < .05 we can use Appendix A with n = 5 and = 30/150 =
.20 to find P(X 2).
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution

108. On a particular day, 112 of 280 passengers on a particular DTW-LAX


flight used the e-ticket check-in kiosk to obtain boarding passes. In a
random sample of eight passengers, use the binomial model to find
the approximate hypergeometric probability that four will have used
the e-ticket check-in kiosk to obtain boarding passes.

A.
B.
C.
D.

.2322
.8263
.2926
.5613

Since n/N < .05 we can use Appendix A with n = 8 and = 112/280
= .40 to find P(X = 4).
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution

109. A clinic employs nine physicians. Five of the physicians are female.
Four patients arrive at once. Assuming the doctors are assigned
randomly to patients, what is the probability that all of the assigned
physicians are female?

A.
B.
C.
D.

.0397
.0295
.0808
.0533

You can't use the binomial approximation because we have sampled


more than 5% of the population (n/N = 4/9 = .444) so use the
hypergeometric formula with x = 4, n = 4, s = 5, N = 9 or use the
Excel function =HYPGEOM.DIST(4,4,5,9,0) = .03938.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution

110. There is a .02 probability that a customer's Visa charge will be


rejected at a certain Target store because the transaction exceeds
the customer's credit limit. What is the probability that the first such
rejection occurs on the third Visa transaction?

A.
B.
C.
D.

.0192
.0025
.0247
.0200

Use the formulas for the geometric PDF (not the CDF) with = .02 to
find P(X = 3) = .02(1 - .02)3-1 = .02(.98)2 = .02(.9604) = .019208.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)

111. Ten percent of the corporate managers at Axolotl Industries majored


in humanities. What is the probability that the first humanities major
is the fifth manager you meet?

A.
B.
C.
D.

.0656
.8561
.5904
.4095

Use the formulas for the geometric PDF (not the CDF) with = .10 to
find P(X = 5) = .10(1 - .10)5-1 = .10(.90)4 = .10(.6561) = .06561.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)

112. Ten percent of the corporate managers at Axolotl Industries majored


in humanities. What is the expected number of managers to be
interviewed until finding the first one with a humanities major?

A.
B.
C.
D.

15
20
10
17

The geometric mean is 1/ = 1/(.10) = 10.


AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)

113. When you send out a resume, the probability of being called for an
interview is .20. What is the probability that the first interview occurs
on the fourth resume that you send out?

A.
B.
C.
D.

.4096
.1024
.2410
.0016

Use the formulas for the geometric PDF (not the CDF) with = .20 to
find P(X = 4) = .20(1 - .20)4-1 = .20(.80)3 = .20(.512) = .1024.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)

114. When you send out a resume, the probability of being called for an
interview is .20. What is the expected number of resumes you send
out until you get the first interview?

A.
B.
C.
D.

5
7
10
12

The geometric mean is 1/ = 1/(.20) = 5.


AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)

115. When you send out a resume, the probability of being called for an
interview is .20. What is the probability that you get your first
interview within the first five resumes that you send out?

A.
B.
C.
D.

.6723
.1024
.2410
.0016

Use the formulas for the geometric CDF (not the PDF) with = .20 to
find P(X 5) = 1 -(1-.20)5 = = 1 - (.80)5 = 1 - .32678 = .67232.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)

116. There is a .02 probability that a customer's Visa charge will be


rejected at a certain Target store because the transaction exceeds
the customer's credit limit. What is the probability that the first such
rejection occurs within the first 20 Visa transactions?

A.
B.
C.
D.

.1362
.4000
.3324
.4538

Use the formulas for the geometric CDF (not the PDF) with = .02 to
find P(X 20) = 1 -(1-.02)20 = = 1 - (.98)20 = 1 - .6676 = .3324.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)

117. There is a .02 probability that a customer's Visa charge will be


rejected at a certain Target store because the transaction exceeds
the customer's credit limit. What is the expected number of Visa
transactions until the first one is rejected?

A.
B.
C.
D.

10
20
50
98

The geometric mean is 1/ = 1/(.02) = 50.


AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)

118. The geometric distribution best describes:

A. the number of successes in a sample of n trials.


B. the number of trials until the first success.
C. the number of events in a given unit of time.
D. the process of sampling without replacement.
Review the definition of geometric distribution.
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)

119. The CDF for the geometric distribution shows:

A. the probability of success in a random experiment consisting of n


independent trials.
B. the probability that the first success will occur within a given
number of trials.
C. the probability that no success will be obtained in a given
Bernoulli trial.
D. the probability of more than one success in the first n trials.
Review the definition of geometric distribution.
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)

120. If the probability of success is .25, what is the probability of


obtaining the first success within the first three trials?

A.
B.
C.
D.

.4218
.5781
.1406
.2228

Use the formulas for the geometric CDF (not the PDF) with = .25 to
find P(X 3) = 1 -(1-.25)3 = 1 - (.75)3 = 1 - .421875 = .578125.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)

121. If the probability of success is .30, what is the probability of


obtaining the first success within the first five trials?

A.
B.
C.
D.

.0024
.8319
.1681
.9976

Use the formulas for the geometric CDF (not the PDF) with = .30 to
find P(X 5) = 1 -(1-.30)5 = 1 - (.70)5 = 1 - .16807 = .83193.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)

122. A project has three independent stages that must be completed in


sequence. The time to complete each stage is a random variable.
The expected times to complete the stages are 1 = 23, 2 = 11, 3
= 17. The expected project completion time is:

A.
B.
C.
D.

51.
23.
40.
32.

The means can be summed because the stages are independent.


AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-11 Apply rules for transformations of random variables (optional).
Topic: Transformations of Random Variables (Optional)

123. A project has 3 independent stages that must be completed in


sequence. The time to complete each stage is a random variable.
The standard deviations of the completion times for the stages are 1
= 5, 2 = 4, 3 = 6. The standard deviation of the overall project
completion time is:

A.
B.
C.
D.

8.77
15.0
14.2
9.24

The variances can be summed because the stages are independent


(Rule 4). You have to square the standard deviations to get the
variances 12 = 25, 22 = 16, 32 = 36, then add them and take the
square root of the sum. Be careful - the standard deviations cannot
be summed.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-11 Apply rules for transformations of random variables (optional).
Topic: Transformations of Random Variables (Optional)

124. A stock portfolio consists of two stocks X and Y. Their daily closing
prices are independent random variables with standard deviations X
= 2.51 and Y = 5.22. What is the standard deviation of the sum of
the closing prices of these two stocks?

A.
B.
C.
D.

33.55
6.48
7.73
5.79

The variances can be summed because the stages are independent


(Rule 4). You have to square the standard deviations to get the
variances X2 = 6.3001 and Y2 = 27.2484, then add them and take
the square root of the sum. Be careful - the standard deviations
cannot be summed.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-11 Apply rules for transformations of random variables (optional).
Topic: Transformations of Random Variables (Optional)

125. A stock portfolio consists of two stocks X and Y. Their daily closing
prices are correlated random variables with variances X2 = 3.51 and
Y2 = 5.22, and covariance XY = -1.55. What is the standard
deviation of the sum of the closing prices of these two stocks?

A.
B.
C.
D.

5.63
7.18
8.73
2.68

Use the formula for the variance of correlated (nonindependent)


events. We sum the variances and covariance, and then take the
square root: X+Y = [X2 + Y2 + XY ]1/2 = [3.51 + 5.22 - 1.55]1/2 =
[7.18]1/2 = 2.67955.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-11 Apply rules for transformations of random variables (optional).

Topic: Transformations of Random Variables (Optional)

126. The expected value of a random variable X is 140 and the standard
deviation is 14. The standard deviation of the random variable Y =
3X - 10 is:

A.
B.
C.
D.

42
6.48
14
32

Use the rule for functions of a random variable (Rule 2) to get Y =


3X = (3)(14) = 42. The constant -10 merely shifts the distribution
and has no effect on the standard deviation. The mean of Y is not
requested.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-11 Apply rules for transformations of random variables (optional).
Topic: Transformations of Random Variables (Optional)

127. The expected value of a random variable X is 10 and the standard


deviation is 2. The standard deviation of the random variable Y = 2X
- 10 is:

A.
B.
C.
D.

2
4
-10
-6

Use the rule for functions of a random variable (Rule 2) to get Y =


2X = (2)(2) = 4. The constant -10 merely shifts the distribution and
has no effect on the standard deviation. The mean of Y is not
requested.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-11 Apply rules for transformations of random variables (optional).
Topic: Transformations of Random Variables (Optional)

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