Chapter (1)

1) A portion or part of a population is called a

A. random survey.
B. sample.
C. tally.
D. frequency distribution.

A sample is a subset of a population of interest.

2) Which word is not part of the definition of descriptive

statistics?
A. Organizing
B. Summarizing
C. Presenting
D. Predicting

In descriptive statistics, we organize, summarize, and present data. We do

not predict.

3) The general process of gathering, organizing,

summarizing, analyzing, and interpreting data is called
A. statistics.
B. descriptive statistics.
C. inferential statistics.
D. levels of measurement.
Statistics is the science of collecting, organizing, presenting,
analyzing, and interpreting data to assist in making more
effective decisions.

4) When statisticians analyze sample data in order to

draw conclusions about the characteristics of a
population, this is referred to as
 A. descriptive statistics.
B. statistical inference.
C. data analysis.
D. data summarization.

This is the definition of statistical inference, in which we infer

population parameters based on a sample taken from that
population.

5) The reported unemployment is 5.5% of the population.

What level of measurement is used to measure
unemployment?
A. Nominal
B. Ordinal
C. Interval
D. Ratio
Unemployment percentages have a true zero point (no
unemployment), and the ratio between two values is meaningful.
Consequently, this is ratio level data.

6) The incomes of 50 loan applicants are obtained. Which

level of measurement is income?
A. Nominal
B. Ordinal
C. Interval
D. Ratio
Incomes are measured on a ratio scale because the variable has
a zero point (no income) and the ratio between two values is
meaningful.
7) A bank asks customers to evaluate its drive-through
service as good, average, or poor. Which level of
measurement is this classification?
A. Nominal
B. Ordinal
C. Interval
D. Ratio
Ordinal is the correct answer because a "good" response is
better than an "average" one. However, the difference between
the responses is not a constant size.

8) A survey includes a question about marital status that has

the following responses: single, married, divorced,
separated, or widowed. What is the level of measurement
for this question?
A. Ratio
B. Interval
C. Ordinal
D. Nominal
Marital status is nominal because it has no natural order and
cannot be ranked or ordered.

9) What type of variable is the number of robberies reported

in your city?
A. Attribute
B. Continuous
C. Quantitative
D. Qualitative
The number of robberies is counted and must be a whole
number, such as 0, 500, or 3,125,874.
10) What type of variable is the number of auto accidents
reported in a given month?
A. Interval
B. Ratio
C. Continuous
D. Discrete
The number of auto accidents is counted and must be a whole
number, such as 0, 500, or 3,125,874.

True or false
1) A population is a collection of all individuals, objects, or
measurements of interest.
True
False

2) Statistics are used as a basis for making decisions.

True
False
3) The average number of passengers on commercial flights
between Egypt and New York City is an example of a
statistic.
True
False

4) Statistics is used to report the summary results of market

surveys.
True
False
 5) Descriptive statistics are used to find out something
about a population based on a sample.
True
False

6) There are four levels of measurement: qualitative,

quantitative, discrete, and continuous.
True
False

7) The ordinal level of measurement is considered the

"lowest" level of measurement.
True
False

The nominal scale is the "lowest" level of measurement.

8) Data measured on a nominal scale can only be classified

into categories.
True
False

9) A marketing research agency was hired to test a new

smartphone. Consumers rated it outstanding, very good,
fair, or poor. The level of measurement for this
experiment is ordinal.
True
False
10) If we select 100 persons from 25,000 registered voters
and question them about candidates and issues, the 100
persons are referred to as the population.
True
False
 Chapter 2
Part A
1) Monthly commissions of first-year insurance brokers are
$1,270, $1,310, $1,680, $1,380, $1,410, $1,570, $1,180, and
$1,420. These figures are referred to as

a. a histogram.
b. raw data.
c. a frequency distribution.
d. a frequency polygon.

Histograms, frequency distributions, and frequency polygons all summarize data. The
data in the question are individual observations or raw data that are not summarized.

2) When data are collected using a qualitative, nominal variable,

what is true about a frequency table that summarizes the data?

a. The upper and lower class limits must be calculated.

b. A pie chart can be used to summarize the data.
c. The number of classes is equal to the number of variable's
values plus 2.
d. The "5 to the k rule" can be applied.

3)A student was interested in the cigarette-smoking habits of college

students and collected data from an unbiased random sample of
students. The data are summarized in the following table.

Males who smoke 20

Males who do not smoke 30
Females who smoke 25
Females who do not smoke 50

What type of chart would best represent the data from this frequency
table?
a. Bar chart
b. Box plot
c. Scatterplot
d. Frequency polygon
The variables are nominal and qualitative. The frequency table is best
presented with a bar chart.

4)A student was interested in the cigarette-smoking habits of college

students and collected data from an unbiased random sample of
students. The data are summarized in the following table.

Males who smoke 20

Males who do not smoke 30
Females who smoke 25
Females who do not smoke 50

What type of chart best represents the relative class frequencies?

a. Box plot
b. Pie chart
c. Scatterplot
d. Frequency polygon

The variables are nominal and qualitative. Relative frequencies for a

qualitative, nominal variable are best summarized with a pie chart.

5) A group of 100 students were surveyed about their interest in a

new Economics major. Interest was measured in terms of high,
medium, or low. In the study, 30 students responded high interest, 50
students responded medium interest, and 20 students responded low
interest. What is the best way to illustrate the relative frequency of
student interest?
a. Use a cumulative frequency polygon.
b. Use a box plot.
c. Use a pie chart.
d. Use a frequency table.
Interest is a qualitative, ordinal variable. The relative frequencies for a qualitative,
ordinal variable are best summarized with a pie chart.

6) What is the following table called?

Ages Number of Ages

20 up to 30 16
30 up to 40 25
40 up to 50 51
50 up to 60 80
 Ages Number of Ages
60 up to 70 20
70 up to 80 8
a. Histogram
b. Frequency polygon
c. Cumulative frequency distribution
d. Frequency distribution
The table is not a graph, such as a histogram or a frequency polygon. The table shows
the number of people in each class.

The answer (30%) is found by dividing the frequency of the somewhat concerned
class by the total frequency, or 80/270.

7) Refer to the following breakdown of responses to a survey of "Are

you concerned about being tracked while connected to the Internet?":

Response Frequency
Very concerned 70
Somewhat concerned 80
No concern 120

What percentage of the responses indicated that users were

somewhat concerned?
80%
35%
30%
100%
True or false
1) A frequency table for qualitative data has class limits.
True
False

Qualitative data are not numeric, so there cannot be class limits

2) To summarize the gender of students attending a college, the

number of classes in a frequency table depends on the number of
students.
True
False
Gender is a nominal, qualitative variable that has two values.
Therefore, there will be only two classes: male and female.

3) In a bar chart, the horizontal axis is usually labeled with the values
of a qualitative variable.
True
False

Bar charts set up with vertical bars will put the quantitative variable on
the horizontal axis, while the frequency or counts will be on the
vertical axis.

4) In a bar chart, the heights of the bars represent the frequencies in

each class.
True
False

Bar charts set up with vertical bars will put the quantitative variable on
the horizontal axis, while the frequency or counts will be on the
vertical axis.

5) To convert a frequency distribution to a relative frequency

distribution, divide each class frequency by the number of classes.
True
False

Relative frequencies are computed by dividing class frequencies by

the total of the class frequencies.

6) A pie chart is similar to a relative frequency distribution.

True
False

Pie charts are essentially visual representations of relative

frequencies: these charts show the percentage or proportion of each
class relative to the total frequency.
7) A frequency polygon is a very useful graphic technique when
comparing two or more distributions.
True
False

This is a major advantage of using frequency polygons because you

can place the graphs on top of each other, something you can’t do
with histograms.
 Chapter two
Part B

1) When data are collected using a qualitative, nominal variable

(e.g., male or female), what is true about a frequency table that
summarizes the data?
a. The upper and lower class limits must be calculated.
b. Class midpoints can be computed.
c. The number of classes corresponds to the number of a
variable's values.
d. The "2 to the k rule" can be applied.

2) For a relative frequency distribution, relative frequency is

computed as
a. the class width divided by the class interval.
b. the class midpoint divided by the class frequency.
c. the class frequency divided by the class interval.
d. the class frequency divided by the number of observations.
By definition, relative frequency is computed as class frequency divided by total
frequency.

3) Refer to the following distribution of commissions.

Monthly Commissions Class Frequencies

$600 up to $800 3
800 up to 1,000 7
1,000 up to 1,200 11
1,200 up to 1,400 12
1,400 up to 1,600 40
1,600 up to 1,800 24
1,800 up to 2,000 9
2,000 up to 2,200 4

What is the relative frequency for salespeople who earn from $1,600
up to $1,800?
a. 0.02
b. 0.024
c. 0.20
 d. 0.24
The number 0.20 is found by 24/120. Here 120 is the total number of salespeople in the
distribution (the sum of the class frequencies).

4) Refer to the following distribution of commissions.

Monthly Commissions Class Frequencies

$600 up to $800 3
800 up to 1,000 7
1,000 up to 1,200 11
1,200 up to 1,400 12
1,400 up to 1,600 40
1,600 up to 1,800 24
1,800 up to 2,000 9
2,000 up to 2,200 4

For the preceding distribution, what is the midpoint of the class with
the greatest frequency?
a. 1,400
b. 1,500
c. 1,700
d. The midpoint cannot be determined.

The class with the greatest frequency is "1,400 up to 1,600." The class midpoint is the
lower limit (1,400) plus one half of the class interval (1/2 × 200 = 100) or 1,400 + 100 =
1,500.

5) Refer to the following distribution of commissions.

Monthly Commissions Class Frequencies

$600 up to $800 3
800 up to 1,000 7
1,000 up to 1,200 11
1,200 up to 1,400 12
1,400 up to 1,600 40
1,600 up to 1,800 24
1,800 up to 2,000 9
2,000 up to 2,200 4

What is the class interval?

a. 200
b. 300
c. 3,500
d. 400
The class interval is 200, found by calculating the difference between any consecutive
lower or upper class limits.

6) Refer to the following wage breakdown for a garment factory.

Hourly Wages Number of Employees

$4 up to $7 18
7 up to 10 36
10 up to 13 20
13 up to 16 6

What is the class interval for the preceding table of wages?

a. $2
b. $3
c. $4
d. $5
The class interval is $3, found by calculating the difference between any consecutive
lower or upper class limits.

7) The midpoint of a class is halfway between the lower and upper

limits.
True
False

The midpoint is the center of each class. To find it, you add the lower
and upper limits and divide by two.
 Chapter 3
1- The sum of the deviations of each data value from this measure of
central location will always be zero.

Mode
Mean
Median
Standard deviation

2- For any data set, which measures of central location have only one
value?

Mode and median

Mode and mean
Mode and standard deviation
Mean and median

3- Which measures of central location are not affected by extremely

small or extremely large values?

Mean and median

Mean and mode
Mode and median
Standard deviation and mean

4- What is the relationship among the mean, median, and mode in a

symmetric distribution?

They are all equal.

The mean is always the smallest value.
The mean is always the largest value.
The mode is the largest value.

5- For a data set, half of the observations are always greater than the
_______.

median
mode
mean
standard deviation
 6- For a data set with an odd number of observations that have been
sorted from smallest to largest values, where is the median located?

The average of the two middle observations

The number of observations divided by two
The observation in the middle
The number of observations multiplied by 0.5

7- Which one of the following is referred to as the population mean?

µ
s
σ
X

8- What is the median of 26, 30, 24, 32, 32, 31, 27, and 29?

32
29
30
29.5

9- The net incomes (in $millions) of a sample of steel fabricators are

$86, $67, $86, and $85. What is the modal net income?

$67
$85
$85.5
$86

10- During the past six months, a purchasing agent placed the following
three orders for coal:

Tons of Coal 1,200 3,000 500

Price per Ton $ 28.50 $ 87.25 $ 88.00

What is the weighted arithmetic mean price per ton?

$87.25
$72.33
$68.47
 $89.18

Multiply the tons of coal purchased by the price per ton and sum the results. Divide this result
by 4,700, the total tons purchased. [(1,200 × $28.5) + (3,000 × $87.25) + (500 ×
$88.00)]/(1,200 + 3,000 + 500) = $72.33.

11- A sample of single persons receiving Social Security payments

revealed these monthly benefits: $983, $991, $762, $777, $933, and
$979. How many observations are below the median?

1
2
3
3.5

12- Over the last six months, the following numbers of absences have
been reported: 16, 20, 6, 10, 4, and 12. What is the median number of
monthly absences?

16
11
4
23

13- Over the last six months, the following numbers of absences have
been reported: 6, 0, 10, 14, 8, and 0. What is the median number of
monthly absences?

6
7
8
3

14- A sample of the paramedical fees charged by clinics revealed these

amounts: $55, $49, $50, $45, $52, and $55. What is the median
charge?

$47.50
$51.00
$52.00
$55.00
15- The times (in minutes) that several underwriters took to review
applications for similar insurance coverage are 190, 150, 20, and 54.
What is the median length of time required to review an application?

102.00
85.00
93.00
74.00

16- A question in a market survey asks for a respondent’s favorite car

color. Which measure of central location should be used to
summarize this question?

Mode
Median
Mean
Standard deviation

17- Sometimes, a data set has two values that have the highest and
equal frequencies. In this case, the distribution of the data can best
be described as _______.

symmetric
bimodal (having two modes)
positively skewed
negatively skewed

18- The sum of the differences between sample observations and the
sample mean is equal to _______.

zero
the mean deviation
the range
the standard deviation

19- The sample mean

is always equal to the population mean.

is always smaller than the population mean.
is found by adding the data values and dividing them by (n − 1).
is found by adding all data values and dividing them by n.
 Chapter 3
1- The sum of the deviations of each data value from this measure of
central location will always be zero.

Mode
Mean
Median
Standard deviation

2- For any data set, which measures of central location have only one
value?

Mode and median

Mode and mean
Mode and standard deviation
Mean and median

3- Which measures of central location are not affected by extremely

small or extremely large values?

Mean and median

Mean and mode
Mode and median
Standard deviation and mean

4- What is the relationship among the mean, median, and mode in a

symmetric distribution?

They are all equal.

The mean is always the smallest value.
The mean is always the largest value.
The mode is the largest value.

5- For a data set, half of the observations are always greater than the
_______.

median
mode
mean
standard deviation
 6- For a data set with an odd number of observations that have been
sorted from smallest to largest values, where is the median located?

The average of the two middle observations

The number of observations divided by two
The observation in the middle
The number of observations multiplied by 0.5

7- Which one of the following is referred to as the population mean?

µ
s
σ
̅

8- What is the median of 26, 30, 24, 32, 32, 31, 27, and 29?

32
29
30
29.5

9- The net incomes (in $millions) of a sample of steel fabricators are

$86, $67, $86, and $85. What is the modal net income?

$67
$85
$85.5
$86

10- During the past six months, a purchasing agent placed the following
three orders for coal:

Tons of Coal 1,200 3,000 500

Price per Ton $ 28.50 $ 87.25 $ 88.00

What is the weighted arithmetic mean price per ton?

$87.25
$72.33
$68.47
$89.18
Multiply the tons of coal purchased by the price per ton and sum the results. Divide this result
by 4,700, the total tons purchased. [(1,200 × $28.5) + (3,000 × $87.25) + (500 ×
$88.00)]/(1,200 + 3,000 + 500) = $72.33.

11- A sample of single persons receiving Social Security payments

revealed these monthly benefits: $983, $991, $762, $777, $933, and
$979. How many observations are below the median?

1
2
3
3.5

12- Over the last six months, the following numbers of absences have
been reported: 16, 20, 6, 10, 4, and 12. What is the median number of
monthly absences?

16
11
4
23

13- Over the last six months, the following numbers of absences have
been reported: 6, 0, 10, 14, 8, and 0. What is the median number of
monthly absences?

6
7
8
3

14- A sample of the paramedical fees charged by clinics revealed these

amounts: $55, $49, $50, $45, $52, and $55. What is the median
charge?

$47.50
$51.00
$52.00
$55.00

15- The times (in minutes) that several underwriters took to review
applications for similar insurance coverage are 190, 150, 20, and 54.
What is the median length of time required to review an application?
102.00
85.00
93.00
74.00

16- A question in a market survey asks for a respondent’s favorite car

color. Which measure of central location should be used to
summarize this question?

Mode
Median
Mean
Standard deviation

17- Sometimes, a data set has two values that have the highest and
equal frequencies. In this case, the distribution of the data can best
be described as _______.

symmetric
bimodal (having two modes)
positively skewed
negatively skewed

18- The sum of the differences between sample observations and the
sample mean is equal to _______.

zero
the mean deviation
the range
the standard deviation

19- The sample mean

is always equal to the population mean.

is always smaller than the population mean.
is found by adding the data values and dividing them by (n − 1).
is found by adding all data values and dividing them by n.

20- For a sample of similar-sized all-electric homes, the March electric bills were (to the
nearest dollar): $212, $191, $176, $129, $106, $92, $108, $109, $103, $121, $175,
and $194. What is the range?

$100
$130
$120
$112
The ages of all the patients in the isolation ward of the hospital are 38, 26, 13, 41, and 22.
What is the population variance?

106.8
91.4
240.3
42.4

A sample of small bottles and their contents has the following weights (in grams): 4, 2, 5, 4,
5, 2, and 6. What is the sample variance of bottle weight?

6.92
4.80
1.96
2.33

The sample variance of hourly wages was 10. What is the sample standard deviation?

$1.96
$4.67
$3.16
$10.00

What is a disadvantage of the range as a measure of dispersion?

It is based on only two observations.
It can be distorted by a large mean.
It is not in the same units as the original data.
It has no disadvantage.

True (or) False

1- A value that is typical or representative of the data is referred to as a measure

of central location.

True

False

2- The arithmetic mean is the sum of the quantitative observations divided by the total
number of observations.

True

False

3- A set of ordinal-, interval-, or ratio-level data may have only one mode.

True
 False

A set of observations may have more than one mode. For example, the following set of data
has two modes, 3 and 7: 1, 2, 3, 3, 3, 4, 4, 5, 7, 7, 7, 10.

4- The mode is the value of the observation that appears most frequently.
True

False

This is the definition of the mode.

5- Extremely high or low scores affect the value of the median.

True
False

A median is the middle observation in a sorted list of data. The values do not have any effect
on the median. Arithmetic means are impacted by high or low values, however.

6- For any distribution, there is an equal number of values above and below the mean.
True

False

There is an equal number of observations above and below the median.

7- Variation describes the degree of dispersion in the data.

True

False

Measures of variation quantify how much the data are dispersed.

8- The variance is the mean of the sum of the squared deviations between each
observation and the median.
True

False

The variance is the mean of the sum of the squared deviations between each observation
and the mean.

9- The standard deviation is the positive square root of the variance.

True

False

The variance must be a positive number as it is based on the squared deviations from the
mean. The standard deviation is the square root of the variance.
 1- A dot plot is best applied for a data set with __________.

1,000 observations
50 observations
more than one variable
one mode
Dot plots are most useful for smaller data sets, whereas histograms tend to be most useful
for large data sets.

2- A dot plot shows ____________.

the general shape of a distribution

the mean, median, and mode
the relationship between two variables
the interquartile range

3- A dot plot is best applied when _____________________.

the mean, median, and mode are equal

the general shape of a distribution is symmetric
the relationship between two variables is summarized
a single variable is summarized

4- A dot plot can be used to show _________________.

the mean, median, and mode

the general shape of a distribution for a nominal qualitative variable
the distribution for a quantitative variable
the interquartile range

A dot plot "piles" or "stacks" observations on top of each other. This allows us to see the
shape of the distribution.

5- The following graph is a ____________.

dot plot
stem-and-leaf diagram
box plot
contingency table
A dot plot "piles" or "stacks" observations on top of each other. This allows us to see the
shape of the distribution.
 6- The test scores for a class of 163 students are computed. What is the location of the
test score associated with the third quartile?

123
41
82
83
After ranking or ordering the data from minimum to maximum, the third quartile is at rank or
location (163 + 1)(75/100) = 123.

7- The test scores for a class of 147 students are computed. What is the location of the
test score associated with the third quartile?

111
37
74
75
After ranking or ordering the data from minimum to maximum, the third quartile is at rank or
location (147 + 1)(75/100) = 111.

8- Quartiles divide a distribution into ___________.

2 equal parts
4 equal parts
10 equal parts
100 equal parts

9- In a distribution, the second quartile corresponds with the __________.

mean
median
mode
variance

The second quartile is the value that separates the 50% of lower values from the 50% of the
higher values, which corresponds to the median or 50th percentile.

10- Percentiles divide a distribution into _____________.

2 equal parts
4 equal parts
10 equal parts
100 equal parts
 11- To locate the percentile for a given observation in a data set, the data must be
___________.

sorted and listed from the minimum to the maximum values

displayed in a histogram
summarized in a frequency distribution
distributed symmetrically around the mean

Sorting or ranking the data is necessary to determine percentiles.

12- In the following set of data: (3, 4, 5, 6, 7, 49, 100), what are the first, second, and
third quartiles?

rev: 11_05_2021_QC_CS-284201

3, 6, and 100
4, 5, and 49
4, 6, and 49
3, 5, and 100
The first quartile is located at position (7 + 1)(25/100) = 2, which corresponds with the data
value, 4.
The second quartile is located at position (7 + 1)(50/100) = 4, which corresponds with the
data value, 6.
The third quartile is located at position (7 + 1)(75/100) = 6, which corresponds with the data
value, 49.

13- The following graph is a __________.

dot plot
stem-and-leaf display
box plot
contingency table

A box plot is a graphical display based on the minimum, maximum, median, and the first and
third quartile values.
 14- What statistics are needed to draw a box plot?

The minimum, maximum, median, first and third quartiles

The median, mean, and standard deviation
The median and interquartile range
The mean and standard deviation

A box plot requires minimum, maximum, median, and the first and third quartile values.

15- A box plot shows ___________.

the mean and variance

the relative symmetry of a distribution for a set of data
the 10th and 90th percentiles of a distribution
the deciles of a distribution

A box plot shows the relative symmetry of a distribution with relative sizes of the rectangles
on either side of the median and the lengths of the "whiskers."

16- What does the interquartile range describe?

The range of the lower 50% of the observations

The range of the middle 50% of the observations
The range of the upper 50% of the observations
The ranges of the lower 25% and the upper 25% of the observations

The interquartile range represents the range of the middle 50% of the observations, which is
determined by the values of the first and third quartiles.

17- Using the following statistics to describe a distribution of data, what is the
interquartile range?

Minimum = 10
Q1 = 25
Median = 50
Q3 = 75
Maximum = 95

85
50
15
20
The interquartile range is the distance between the first and third quartiles, or 75 − 25 = 50.
 18- If Pearson’s coefficient of skewness is equal to zero, the shape of the distribution is
________.

negatively skewed
symmetric
positively skewed
unknown

19- The following graph is _______________.

positively skewed
negatively skewed
symmetric
uniformly distributed

20-A large oil company is studying the number of gallons of gasoline purchased per
customer at self-service pumps. The mean number of gallons is 12.0, with a standard
deviation of 3.0 gallons. The median is 13.25 gallons. What is Pearson's coefficient of
skewness in this instance?
rev: 09_29_2022_QC_CS-316907

−1.00
−1.25
+1.25
+1.00
Pearson's coefficient of skewness is computed by 3(12.0 − 13.25)/3.0 = −1.25.

21-What is the value of the Pearson coefficient of skewness for a distribution with a
mean of 17, a median of 12, and a standard deviation of 6?

+2.5
−2.5
+0.83
−0.83
Pearson's coefficient of skewness is computed by 3(17 − 12)/6 = 2.5.
22- What is the possible range of values for Pearson's coefficient of skewness?

−1 and +1
−3 and +3
0% and 100%
Unlimited values
The Pearson coefficient of skewness can range from −3 up to 3.

23- The following graph is a ___________.

dot plot
stem-and-leaf display
box plot
scatter diagram

24- The following graph illustrates _______________.

a positive or direct relationship

a negative or inverse relationship
no relationship
a distribution for a single variable
When two variables are positively related, an increase in the value of one variable
corresponds with increases in the value of the other variable.
25- In a scatter diagram, we describe the relationship between __________.

two variables measured at the ordinal level

two variables, one measured as an ordinal variable and the other as a ratio variable
two variables measured at the interval or ratio level
a variable measure on the interval or ratio level and time
A scatter plot shows the relationship between two variables measured at the interval or ratio
scales.

26- In a contingency table, we describe the relationship between ________.

two variables measured at the ordinal or nominal level

two variables, one measured as an ordinal variable and the other as a ratio variable
two variables measured at the interval or ratio level
a variable measured on the interval or ratio level and time
A contingency table is used to summarize data measured on a nominal or ordinal scale.

27- A contingency table would be used to summarize data such as ________.

company employees by gender and organizational title

company employees by gender and age
company employees by compensation and age
company employees by compensation and years with the company
A contingency table is used to summarize data measured on a nominal or ordinal scale.
Gender and organization title are both nominal variables. Age, compensation, and years with
the company are ratio level data.

28-Which of the following statements is true about the correlation coefficient?

A negative correlation coefficient indicates a direct relationship between two quantitative

variables.
A positive correlation coefficient indicates an indirect relationship between two
quantitative variables.
A correlation coefficient of zero means that two quantitative variables are not linearly
related to each other.
The correlation coefficient ranges in value from −3 to +3.

29- A correlation coefficient is calculated and found to be equal to −1.0. Which of the
following statements is true?

The points in a scatter plot of the two variables will be in a straight line with a negative
slope.
The points in a scatter plot of the two variables will be in a straight line with a positive
slope.
The scatter plot will show no relationship between the two variables.
The points in the scatter plot of the two variables will slope downward from left to right
but will not be in a straight line.
A correlation coefficient of −1.0 indicates perfect negative correlation between the two
variables, which means that the points will be in a straight line with a negative slope.

30- Which of the following is true about the correlation coefficient based on the graph below
of variables X and Y?

The correlation coefficient must be positive.

The correlation coefficient must be negative.
The correlation coefficient will be close to zero.
The correlation coefficient will be close to +1.0.

31-The median of a sample will always equal the ________.

mode
mean
50th percentile
All of these answers are correct.

32- The 75th percentile is referred to as the ________.

first quartile
second quartile
third quartile
fourth quartile
33- The 67th percentile is ________.

the value above which 67% of the observations occur

a value one less than 67% of the observations
the value below which 67% of the observations occur
the value of the observation at the 67th location
 Chapter 5

If the variance is 4.1 grams, what is the standard deviation?

1.100
2.025
11.000
16.810

The standard deviation is the square root of the variance; the square root of 4.1 is 2.025.

If the variance is 3.6 grams, what is the standard deviation?

0.600
1.897
6.000
12.96
The standard deviation is the square root of the variance; the square root of 3.6 is 1.897.

A total of 60% of the customers of a fast-food chain order a hamburger, French fries, and a
drink. If a random sample of 15 cash register receipts is selected, what is the probability that
10 or more will show that the above three food items were ordered?

1.000
0.186
0.403
0.000
Applying the binomial distribution, go to the binomial probability table, find the case where
the number of trials is n = 15, and the probability of success is π = 0.60. Find the row
where x, the number of successes, is 10. Finally, add the probabilities for 10 through 15
successes (0.186 + 0.127 + 0.063 + 0.022 + 0.005 + 0.000). The result is 0.403.

Judging from recent experience, 5% of the computer keyboards produced by an automatic,

high-speed machine are defective. If six keyboards are randomly selected, what is the
probability that none of the keyboards are defective?

0.001
0.167
0.735
0.500
Applying the binomial distribution, go to the binomial probability table, find the case where
the number of trials is n = 6, and the probability of success is π = 0.05. Find the row where x,
the number of successes, is 0. The answer is 0.735.
The probability distribution for the number of automobiles lined up at a Lakeside Olds dealer
at opening time (7:30 AM) for service is:

Number Probability
1 0.10
2 0.25
3 0.45
4 0.20

On a typical day, how many automobiles should Lakeside Olds expect to be lined up at
opening time?

6.00
2.11
1.20
2.75
To find the expected number of cars or the expected value, use formula 6-1: µ = 1(0.10) +
2(0.25) + 3(0.45) + 4(0.20) = 2.75.

On a very hot summer day, 5% of the production employees at Midland States Steel are
absent from work. The production employees are randomly selected for a special in-depth
study on absenteeism. What is the probability of randomly selecting 10 production
employees on a hot summer day and finding that none of them are absent?

0.002
0.344
0.599
0.100
Applying the binomial distribution, go to the binomial probability table, find the case where
the number of trials is n = 10, and the probability of success is π = 0.05. Find the row
where x, the number of successes, is 0. The probability is 0.599.

Sweetwater & Associates write weekend trip insurance at a very nominal charge. Records
show that the probability that a motorist will have an accident during the weekend and file a
claim is 0.0020. Suppose they wrote 600 policies for the coming weekend, what is the
probability that exactly two claims will be filed?

0.3012
1.2500
0.2169
0.0024
In this case, we use the Poisson distribution by first computing the mean, µ = 600 × 0.0020 =
1.20. Then, go to the Poisson probability distribution table. Find the column where µ = 1.20
and go down the left column to the row where x = 2. The value at the intersection is 0.2169.

Sweetwater & Associates write weekend trip insurance at a very nominal charge. Records
show that the probability that a motorist will have an accident during the weekend and file a
claim is 0.0005. Suppose they wrote 400 policies for the coming weekend, what is the
probability that exactly two claims will be filed?

0.8187
0.2500
0.0164
0.0001
In this case, we use the Poisson distribution by first computing the mean, µ = 400 × 0.0005 =
0.20. Then, go to the Poisson probability distribution table. Find the column where µ = 0.2,
go down the left column to the row where x = 2. The value at the intersection is 0.0164.

A listing of all possible outcomes of an experiment and their corresponding probabilities of

occurrence is called a ____________.

random variable
probability distribution
subjective probability
frequency distribution
By definition, a probability distribution shows the probability of all the possible outcomes of
an experiment. The outcomes are measured based on a random variable.

Which one of the following is not a condition of the binomial distribution?

Independent trials
Only two outcomes
The probability of success remains constant from trial to trial.
Sampling at least 10 trials
All are conditions for a binomial distribution except that there is no requirement regarding the
number of trials.

Which is true for a binomial distribution?

There are 10 or more possible outcomes.

 The probability of success remains the same from trial to trial.
The value of π is equal to 1.50.
It approximates the Poisson distribution.
In the set of answers, all are false except that the probability of success is the same for each
trial in a binomial distribution.

Which shape describes a Poisson distribution?

Positively skewed
Negatively skewed
Symmetrical
All of these answers are correct.
A Poisson distribution is positively skewed. However, as the value of µ increases, the
distribution approaches a symmetric distribution.

Sponsors of a local charity decided to attract wealthy patrons to its $500-a-plate dinner by
allowing each patron to buy a set of 24 tickets for the gaming tables. The chance of winning
a prize for each of the 24 plays is 45–55. If you bought 24 tickets, what is the chance of
winning 19 or more prizes?

0.264
0.001
0.005
0.792
Apply the binomial distribution where the number of trials is n = 24, and the probability of
success is π = 0.45. Use the binomial probability formula to find the probabilities of winning
19 or more prizes. That is 0.0006 + 0.0001 + 0 + 0 + 0 = 0.0007, or about 0.001.

Sponsors of a local charity decided to attract wealthy patrons to its $500-a-plate dinner by
allowing each patron to buy a set of 20 tickets for the gaming tables. The chance of winning
a prize for each of the 20 plays is 50–50. If you bought 20 tickets, what is the chance of
winning 15 or more prizes?

0.250
0.021
0.006
0.750
Apply the binomial distribution where the number of trials is n = 20, and the probability of
success is π = 0.50. Use the binomial probability formula to find the probabilities of winning
15 or more prizes. That is 0.0148 + 0.0046 + 0.0011 + 0.0002 + 0.00000 = 0.0207, or about
0.021.

What kind of distributions are the binomial and Poisson probability distributions?

Discrete
Continuous
Both discrete and continuous
Neither discrete nor continuous

Both are discrete distributions that show the probability of a discrete random variable. The
random variable is the number of successes in a fixed number of trials. The random variable
will be whole number values. For example, three successes in four trials. There cannot be
3.33 successes in four trials.

Which of the following is correct about a probability distribution?

The sum of all possible outcomes must equal 1.0.

The outcomes must be mutually exclusive.
The probability of each outcome must be between 0.0 and 1.0 inclusive.
All of these answers are correct.
All of these statements are characteristics of a probability distribution.

Data show that the weight of an offensive linesman may be any weight between 200 and 350
pounds. The distribution of weight is based on a ______________.

continuous random variable

discrete random variable
qualitative variable
All of these answers are correct.
The random variable, weight, can be measured to an infinite degree of precision. Therefore,
the random variable can be any value between 200 and 350.

Carlson Jewelers permits the return of their diamond wedding rings, provided the return
occurs within two weeks of the purchase date. Their records reveal that 10% of the diamond
wedding rings are returned. Five different customers buy a wedding ring. What is the
probability that none of the customers return a ring?

0.250
0.073
0.590
0.500
Applying the binominal probability distribution, go to the binomial probability table, find the
case where the number of trials is n = 5, and the probability of success is π = 0.10. Find the
row where x, the number of successes, is 0. The result is 0.590.
In a large metropolitan area, past records revealed that 30% of all the high school graduates
go to college. From 20 graduates selected at random, what is the probability that exactly 8
will go to college?

0.114
0.887
0.400
0.231
Applying the binomial probability distribution, the number of trials is n = 20, and the
probability of success is π = 0.30. Using the binomial probability formula, the answer is
0.114.

Chances are 50–50 that a newborn baby will be a girl. For families with five children, what is
the probability that all the children are girls?

0.900
0.031
0.001
0.250
Applying the binominal probability distribution, go to the binomial probability table, find the
case where the number of trials is n = 5, and the probability of success is π = 0.50. Find the
row where x, the number of successes, is 5. The result is 0.031.

A new car was put into production. It involved many assembly tasks. Each car was inspected
at the end of the assembly line and the number of defects per unit was recorded. For the first
100 cars produced, there were 40 defective cars. Some of the cars had no defects, a few
had one defect, and so on. The distribution of defects followed a Poisson distribution. Based
on the first 100 cars produced, about how many out of every 1,000 cars assembled should
have one or more defects?

About 660
About 165
About 630
About 330
Applying the Poisson probability distribution, first find the mean fraction defective, µ = 40/100
= 0.40. Then, go to the Poisson probability distribution tables. Find the column where µ =
0.4, go down the left column to the row where x = 0, and read the value at the intersection. It
is 0.6703. This is the probability of no defects. Applying the complement rule of probability,
the probability of at least one defect is 1 − 0.6703 = 0.3297. To estimate the number of
defects in the first 1,000 cars, multiply 1,000 by the probability of at least one defect,
(1,000)(0.3297) = 329.7. So based on the Poisson probability distribution, we expect that
about 330 of the first 1,000 cars will have at least one defect.

The production department has installed a new spray machine to paint automobile doors. As
is common with most spray guns, unsightly blemishes often appear because of improper
mixtures or other problems. A worker counted the number of blemishes on each door. Most
doors had no blemishes; a few had one; a very few had two; and so on. The average number
was 0.5 per door. The distribution of blemishes followed the Poisson distribution. Out of
10,000 doors painted, about how many would have no blemishes?

About 6,065
About 3,935
About 5,000
About 500
Applying the Poisson probability distribution, go to the Poisson probability distribution tables.
Find the column where µ = 0.50, find the row where the number of x = 0, that corresponds to
0 defects, and read the value at the intersection. It is 0.6065. Applying the probability, out of
10,000 doors, there will be 10,000(0.6065) = 6,065 doors with no blemishes.

A manufacturer of headache medicine claims it is 70% effective within a few minutes. That
is, out of every 100 users, 70 get relief within a few minutes. A group of 12 patients are given
the medicine. If the claim is true, what is the probability that eight have relief within a few
minutes?

0.001
0.168
0.667
0.231
Applying the binomial distribution, go to the binomial probability table, find the case where
the number of trials is n = 12, and the probability of success is π = 0.70. Find the row
where x, the number of successes, is 8. The probability that 8 of 12 people have relief is
0.231.

A true/false test consists of six questions. If you guess the answer to each question, what is
the probability of getting all six questions correct?

0
0.016
0.062
0.250
Applying the binomial distribution, go to the binomial probability table, find the case where
the number of trials is n = 6 and the probability of success is π = 0.50. Find the row where x,
the number of successes, is 6. The probability of getting all six correct is 0.016.

A farmer who grows genetically engineered corn is experiencing trouble with corn borers. A
random check of 5,000 ears revealed the following: many of the ears contained no borers,
some ears had one borer, a few had two borers, and so on. The distribution of the number of
borers per ear approximated the Poisson distribution. The farmer counted 1,000 borers in the
5,000 ears. What is the probability that an ear of corn selected at random will contain no
borers?
 0.6697
0.8187
1.3221
0.0131
First, find the mean fraction defective, µ = 1,000/5,000 = 0.20. Then, go to the Poisson
probability distribution tables, find the column where µ = 0.20, go down the left column to the
row where x = 0, and read the value at the intersection. It is 0.8187. The probability of
randomly selecting an ear of corn without borers is 0.8187.

A farmer who grows genetically engineered corn is experiencing trouble with corn borers. A
random check of 5,000 ears revealed the following: many of the ears contained no borers.
some ears had one borer. A few had two borers, and so on. The distribution of the number of
borers per ear approximated the Poisson distribution. The farmer counted 3,500 borers in the
5,000 ears. What is the probability that an ear of corn selected at random will contain no
borers?

0.3476
0.4966
1.000
0.0631
First, find the mean fraction defective, µ = 3,500/5,000 = 0.70. Go to the Poisson probability
distribution tables. Find the column where µ = 0.7, go down the left column to the row where
x = 0, and read the value at the intersection. It is 0.4966. The probability of randomly
selecting an ear of corn without borers is 0.4966.

A tennis match requires that a player win three of five sets to win the match. If a player wins
the first two sets, what is the probability that the player wins the match, assuming that each
player is equally likely to win each set?

0.500
0.125
0.875
0.000
The only way the winner of the first two sets can lose is to lose all three remaining sets. The
probability of that is given by a binomial distribution with x = 0, n = 3, and π = 0.5 for a
probability of 0.125. The complement of losing all three is to win at least 1, with a probability
of 1 − 0.125 = 0.875.

A machine shop has 200 drill presses and other machines in constant use. The probability
that a machine will become inoperative during a given day is 0.002. During some days, no
machines are inoperative, but on other days, one, two, three, or more are broken down.
What is the probability that fewer than two machines will be inoperative during a particular
day?

0.0200
0.2681
0.6703
0.9384
Applying the Poisson probability distribution, first find the mean number of machines down
per day, which is µ = 200(0.002) = 0.400. Using the Poisson probability distribution table, find
the column where µ = 0.400, go down the left column to the rows where x = 0 and x = 1.
These probabilities correspond to the probability that none or one machine is inoperative.
Applying the special rule of addition, add these two probabilities together, so the probability
is 0.6703 + 0.2681 = 0.9384.

A machine shop has 100 drill presses and other machines in constant use. The probability
that a machine will become inoperative during a given day is 0.002. During some days, no
machines are inoperative, but on other days, one, two, three, or more are broken down.
What is the probability that fewer than two machines will be inoperative during a particular
day?

0.0200
0.1637
0.8187
0.9824
Applying the Poisson probability distribution, first find the mean number of machines down
per day, which is µ = 100(0.002) = 0.20. Using the Poisson probability distribution table, find
the column where µ = 0.2, go down the left column to the row where x = 0 and x = 1. These
probabilities correspond to the probability that none or one machine is inoperative. Applying
the special rule of addition, add these two probabilities together, so the probability is 0.8187
+ 0.1637 = 0.9824.

A coin is tossed three times. The following table summarizes the experiment. What is the
following table called?

Number of Heads Probability of the Outcome

0 1/8 = 0.125
1 3/8 = 0.375
2 3/8 = 0.375
3 1/8 = 0.125
Probability distribution
Cumulative frequency distribution
Standard deviation
Frequency table
This is a probability distribution. The outcomes are collectively exhaustive and mutually
exclusive; the probabilities of the outcomes are between 0 and 1, and sum to 1.

Which of the following is NOT a characteristic of a binomial probability distribution?

Each outcome is mutually exclusive.

Each trial is independent.
The probability of success remains constant from trial to trial.
The number of trials is limited to two.
The binomial distribution is not limited to two trials.
What must you know to develop a binomial probability distribution?

The probability of success

The probability of success and the number of trials
The probability of success and the number of successes
The number of trials and the number of successes
By definition, a particular binomial distribution is specified by n, the number of trials, and π,
the probability of a successful trial.

David's gasoline station offers 4 cents off per gallon if the customer pays in cash and does
not use a credit card. Past evidence indicates that 40% of all customers pay in cash. During
a one-hour period, 15 customers buy gasoline at this station. What is the probability that at
least 10 pay in cash?

0.024
0.033
0.009
0.976
Applying the binomial distribution, go to the binomial probability table, find the case where
the number of trials is n = 15 and the probability of success is π = 0.40. Find the rows
where x, the number of successes, is 10, 11, 12, 13, 14, and 15. Find the corresponding
probabilities and sum them: 0.024 + 0.007 + 0.002 + 0.00 + 0.00 + 0.00 = 0.033.

David's gasoline station offers 4 cents off per gallon if the customer pays in cash and does
not use a credit card. Past evidence indicates that 40% of all customers pay in cash. During
a one-hour period, 15 customers buy gasoline at this station. What is the probability that all
15 pay in cash?

0.000
0.100
0.900
1.000
Applying the binomial distribution, go to the binomial probability table, find the case where
the number of trials is n = 15 and the probability of success is π = 0.40. Find the row
where x, the number of successes, is 15. Find the corresponding probability of 0.000.

David's gasoline station offers 4 cents off per gallon if the customer pays in cash and does
not use a credit card. Past evidence indicates that 40% of all customers pay in cash. During
a one-hour period, 15 customers buy gasoline at this station. What is the probability that
more than 8 and less than 12 customers pay in cash?

0.210
0.212
0.092
0.562
Applying the binomial distribution, go to the binomial probability table, find the case where
the number of trials is n = 15 and the probability of success is π = 0.40. Find the rows
where x, the number of successes, is 9, 10, and 11. Sum the corresponding probabilities of
0.061 + 0.024 + 0.007 = 0.092.

David's gasoline station offers 4 cents off per gallon if the customer pays in cash and does
not use a credit card. Past evidence indicates that 40% of all customers pay in cash. During
a one-hour period, 15 customers buy gasoline at this station. This situation is an example of
what type of discrete probability distribution?

Continuous probability distribution

Poisson probability distribution
Binomial probability distribution
Hypergeometric probability distribution
This situation meets the binomial criteria. There is a constant probability of success (0.40), a
fixed number of trials (15), the trials are independent, and we count the number of successful
trials.

A statistics professor receives an average of five e-mail messages per day from students.
Assume the number of messages approximates a Poisson distribution. What is the
probability that on a randomly selected day she will have no messages?

0.0067
0
0.0335
It is impossible to have no messages.
Applying the Poisson probability distribution, the mean of the distribution is 5. Referring to
the Poisson probability tables or using the Poisson probability formula for x = 0 and a mean
of 5, the probability of no messages is 0.0067.

A statistics professor receives an average of five e-mail messages per day from students.
Assume the number of messages approximates a Poisson distribution. What is the
probability that on a randomly selected day she will have five messages?

0.0067
0.8750
0.1755
1.0000
Applying the Poisson probability distribution, the mean of the distribution is 5. Referring to
the Poisson probability tables or using the Poisson probability formula for x = 5 and a mean
of 5, the probability of five messages is 0.1755.

A statistics professor receives an average of five e-mail messages per day from students.
Assume the number of messages approximates a Poisson distribution. What is the
probability that on a randomly selected day she will have two messages?

0.0067
0.0014
 0.4200
0.0842
Applying the Poisson probability distribution, the mean of the distribution is 5. Referring to
the Poisson probability tables or using the Poisson probability formula for x = 2 and a mean
of 5, the probability of no messages is 0.0842.

A company is studying the number of monthly absences among its 125 employees. The
following probability distribution shows the likelihood that people were absent 0, 1, 2, 3, 4, or
5 days last month.

Number of Days Absent Probability

0 0.60
1 0.20
2 0.12
3 0.04
4 0.04
5 0.00

What is the mean number of days absent?

1.00
0.40
0.72
2.5
To find the mean: µ = 0(0.60) + 1(0.20) + 2(0.12) + 3(0.04) + 4(0.04) + 5(0.00) = 0.72. So the
average number of days absent is 0.72 days per employee per month.

A company is studying the number of monthly absences among its 125 employees. The
following probability distribution shows the likelihood that people were absent 0, 1, 2, 3, 4, or
5 days last month.

Number of Days Absent Probability

0 0.60
1 0.20
2 0.12
3 0.04
4 0.04
5 0.00

What is the variance of the number of days absent?

1.1616
1.41
5.00
55.52
We must first calculate the mean: µ = 0(0.60) + 1(0.20) + 2(0.12) + 3(0.04) + 4(0.04) +
5(0.00) = 0.72. Next, to find the variance we must calculate the deviation away from the
mean for each number of days absent, square these deviations, multiply each squared
deviation by the probability, and add them up: σ2 = (0 − 0.72)2(0.60) + (1 − 0.72)2(0.20) + (2
− 0.72)2(0.12) + (3 − 0.72)2(0.04) + (4 − 0.72)2(0.04) + (5 − 0.72)2(0.00) = 1.1616.
A company is studying the number of monthly absences among its 125 employees. The
following probability distribution shows the likelihood that people were absent 0, 1, 2, 3, 4, or
5 days last month.

Number of Days Absent Probability

0 0.60
1 0.20
2 0.12
3 0.04
4 0.04
5 0.00

Given the probability distribution, which of the following predictions is correct?

60% of the employees will have more than one day absent per month.
There is a 0.04 probability that an employee will be absent one day per month.
There is a 0.12 probability that an employee will be absent two days per month.
There is a 0.50 probability that an employee will be absent 0.72 days per month.
Given the probability distribution, the probability of two days absent corresponds with a
probability of 0.12.

A company is studying the number of monthly absences among its 125 employees. The
following probability distribution shows the likelihood that people were absent 0, 1, 2, 3, 4, or
5 days last month.

Number of Days Absent Probability

0 0.60
1 0.20
2 0.12
3 0.04
4 0.04
5 0.00

What is the mode of the distribution?

0.72 days
2.5 days
0 days
3 days
The mode is the value of the random variable that has the highest probability. The number of
days absent with the highest probability is 0. Therefore, 0 days absent is the mode of the
probability distribution.

A company is studying the number of monthly absences among its 125 employees. The
following probability distribution shows the likelihood that people were absent 0, 1, 2, 3, 4, or
5 days last month.

Number of Days Absent Probability

0 0.60
1 0.20
2 0.12
3 0.04
4 0.04
5 0.00

What is the standard deviation of the number of days absent?

1.1616
0
1.6595
1.0778
We must first calculate the mean: µ = 0(0.60) + 1(0.20) + 2(0.12) + 3(0.04) + 4(0.04) +
5(0.00) = 0.72. Next, to find the variance we must calculate the deviation away from the
mean for each number of days absent, square these deviations, multiply each squared
deviation by the probability, and add them up: To find the variance: σ 2 = (0 − 0.72)2(0.60) +
(1 − 0.72)2(0.20) + (2 − 0.72)2(0.12) + (3 − 0.72)2(0.04) + (4 − 0.72)2(0.04) + (5 −
0.72)2(0.00) = 1.1616. The standard deviation is the square root of the variance, or the
square root of 1.1616, which is 1.0778.

For the following distribution:

x P(x)
0 0.130
1 0.346
2 0.346
3 0.154
4 0.026

What is the mean of the distribution?

1.346
2.521
1.604
3.154
To find the mean: µ = 0(0.13) + 1(0.346) + 2(0.346) + 3(0.154) + 4(0.026) = 1.604.

Reference the following table:

x P(x)
0 0.160
1 0.316
2 0.316
3 0.124
 x P(x)
4 0.084

What is the variance of the distribution?

1.2216
1.2977
0.9220
1.0000
To find the variance: σ2 = (0 − 1.656)2(0.160) + (1 − 1.656) 2(0.316) + (2 − 1.656)2(0.316) + (3
− 1.656)2(0.124) + (4 − 1.656)2(0.084) = 1.2977.

Reference the following table:

x P(x)
0 0.130
1 0.346
2 0.346
3 0.154
4 0.026

What is the variance of the distribution?

1.1616
0.9643
0.9820
1.0000
To find the variance: σ2 = (0 − 1.604)2(0.13) + (1 − 1.604)2(0.346) + (2 − 1.604)2(0.346) + (3
− 1.604)2(0.154) + (4 − 1.604)2(0.026) = 0.9643.

The following is a binomial probability distribution with n = 3 and π = 0.20:

x P(x)
0 0.512
1 0.384
2 0.096
3 0.008

The variance of the distribution is _________.

1.500
0.895
0.690
0.480
The variance of a binomial distribution is found by σ2 = nπ(1 − π) = 3(0.20)(1 − 0.20) = 0.48.
If the mean of Poisson probability distribution is with µ = 0.40, what is the variance of the
distribution?

1.0000
0.8986
3.0000
0.4000
The mean and variance of a Poisson distribution are the same. The mean of this Poisson
distribution is stated to be µ = 0.40, so the variance is also 0.4000.

For a binomial distribution, the mean is 0.6 and n = 2. What is π for this distribution?

0.5
1.00
0.3
0.1
The mean of a binomial distribution is found by µ = nπ. Hence, 0.60 = 2(π) and π = 0.60/2 =
0.30.

For a binomial distribution, the mean is 4.8 and n = 8. What is π for this distribution?

0.6
1.1
4.8
0.1
The mean of a binomial distribution is found by µ = nπ. Therefore, 4.8 = 8(π), so π = 4.8/8 =
0.6.

For a binomial distribution, the mean is 4.0 and n = 8. What is π for this distribution?

0.5
1.00
4.0
0.1
The mean of a binomial distribution is found by µ = nπ. Therefore, 4 = 8(π), so π = 4/8 =
0.50.

An insurance agent has appointments with 5 prospective clients tomorrow. From past
experience the agent knows that the probability of making a sale on any appointment is 0.21.
Using the rules of probability, what is the likelihood that the agent will sell a policy to exactly
four of the five prospective clients?

0.200
0.400
0.310
0.008
This is a binomial distribution with x = 4, n = 5, and π = 0.21, so the probability that agent will
sell a policy to 4 of the 5 is 0.008.

An insurance agent has appointments with four prospective clients tomorrow. From past
experience the agent knows that the probability of making a sale on any appointment is one
out of five. Using the rules of probability, what is the likelihood that the agent will sell a policy
to exactly three of the four prospective clients?

0.250
0.500
0.410
0.026
This is a binomial distribution with x = 3, n = 4, and π = 0.2, so the probability that agent will
sell a policy to 3 of the 4 is 0.026.

A type of probability distribution that shows the probability of x successes in n trials, where
the probability of success remains the same from trial to trial, is referred to as a
___________.

hypergeometric probability distribution

uniform probability distribution
normal probability distribution
binomial probability distribution
The binomial distribution has a constant probability of success from trial to trial. The
hypergeometric does not, because selection is without replacement.

A measure of the long-run average value of a random variable used to represent the central
location of a probability distribution is called a(n) _____________.

population variance
population standard deviation
expected value
coefficient of variation
The mean, or expected value, is the typical value representing the central location of a
probability distribution. It also represents the long-run average value of the random variable.

An experiment consists of making 80 telephone calls in order to sell a particular insurance

policy. The random variable in this experiment is a ___________.

discrete random variable

continuous random variable
 complex random variable
simple random variable
The number of phone calls made is a discrete random variable as it can assume only a
certain number of separated values. For example, counting the number of sales will only
result in a whole number (no decimal numbers).

A random variable represents the outcome of an experiment.

True
False

Random variables are defined as a quantity resulting from an experiment that, by chance,
can assume different values.

The probability of a particular outcome must always be between 0.0 and 1.0 inclusive.

True
False

Probability always varies between zero and one. It cannot be negative, nor can it be larger
than one, or 100%.

The random variable for a Poisson probability distribution can assume an infinite number of
values.

True
False

In a Poisson distribution, the random variable has no upper limit. The probability may be very
small for larger values of X, but theoretically those values are possible.

To construct a binomial probability distribution, the mean must be known.

True
False

To construct a binomial probability distribution, the number of trials and the probability of a
success must be known.

To construct a binomial distribution, it is necessary to know the total number of trials and the
probability of success on each trial.

True
False

In order to use the binomial formula or table to calculate probabilities, we need to know the
number of trials, n, and the probability of a success on each trial, π.
The mean of a probability distribution is called its expected value.

True
False

Expected value is another name for the mean of a probability distribution.

The variance of a probability distribution is based on the sum of squared differences from the
mean multiplied by the probability of X.

True
False

To calculate the variance, we subtract each value of X from the mean, square each of those
differences, multiply by the probability of each X value, and sum them.

The variance measures the skewness of a probability distribution.

True
False

The variance measures the dispersion of a probability distribution.

The variance measures the skewness of a probability distribution.

True
False

The variance measures the dispersion of a probability distribution.

The variance of a binomial distribution is found by nπ(1 − π).

True
vFalse

For a binomial distribution, σ2 = nπ(1 − π).

In a Poisson distribution, the probability of success may vary from trial to trial.

True
False

For the Poisson distribution, the probability of success is constant from trial to trial.

The binomial probability distribution is always negatively skewed.

True
False

The shape of the binomial distribution can be positively skewed, negatively skewed, or
symmetric. The shape varies based on the probability of success and the number of trials.

In the binomial probability formula, nCxπx(1 − π)(n − x)

, π is equal to 3.14159.

True
False

π represents the probability of success.

In the binomial probability formula, nCxπx(1 − π)(n − x)

, C is equal to a constant value.

True
False

C represents a “combination.”