SB Test Bank Chapter 6

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SB Test Bank Chapter 6
Xác suất thống kê (Trường Đại học Kinh tế - Tài chính Thành phố Hồ Chí Minh)
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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

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8. A discrete binomial distribution is skewed right when π > .50.
True False
9. When π = .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

. λ.
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 π ≤ .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

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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

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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. continuous random
variable.
B. Poisson random
variable.
C. binary random
variable.
D. binomial random
variable.

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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. The number of births in a hospital on a

given day
B. The number of fives obtained in four rolls
of a die
C. The hourly earnings of a call center employee in
Boston
D. The number of applicants applying for a civil
service job

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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. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
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. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic

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

. fatalities in Texas in a given year due to poisonous snakebites?
A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
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. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
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. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic

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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. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
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. Poisso
n
B. Hypergeomet
ric
C. Binomi
al
D. Unifor
m
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. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic

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41 Which model best describes the number of blemishes per sheet of white
. bond paper?
A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
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. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
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. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic

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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. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
45 Which model best describes the number of births in a hospital until the
. first twins are delivered?
A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
46 On a randomly chosen Wednesday, which probability model would you

. use to describe the number of convenience store robberies in Los
Angeles?
A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic

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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. Binomi
al
B. Geometr
ic
C. Unifor
m
D. Poisso
n
48 Which distribution has a mean of 5?

.
A. Poisson with λ =
25.
B. Binomial with n = 200, π
= .05
C. 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. heads in 200 flips of a fair

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

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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. $0.5
0
B. $0.2
5
C. $0.7
5
D. $1.0
0
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. $0.5
0
B. $3.0
0
C. $1.5
0
D. $1.0
0
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. $0.0
0
B. $1.0
0
C. $0.5
0
D. $0.2
5

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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. $0.2
5
B. $0.5
0
C. $0.7
5
D. $1.0
0
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. $100,00
0
B. $90,00
0
C. -
$10,00
0
D. $
0

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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. 1.
2
B. 1.
0
C. 1.
5
D. 2.
0

shows the probability distribution for X. What is the probability that at
least 1 student comes to office hours on any given Monday?
A. .
30
B. .
40
C. .
50
D. .
60

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shows the probability distribution for X. What is the probability that fewer
than 2 students come to office hours on any given Monday?
A. .
10
B. .
40
C. .
70
D. .
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. 1.
1
B. 1.
3
C. 1.
7
D. 1.
9

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

. the random variable X?
A. 17
5
B. 15
0
C. 20
0
D. 20
5
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.

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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. Constant probability of
success
B. Only two possible Bernoulli
outcomes
C. Fixed number of
trials
D. Equally likely
outcomes
63 The binomial distribution is symmetrical when:

.
A. π = 1 and 1 - π =
0.
B. π = ¼ and 1 - π =
¾.
C. π = ½ and 1 - π =
½.
D. π = 0 and 1 - π =
1.

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

.
A. π = 1 and 1 - π =
0.
B. π = ¼ and 1 - π =
¾.
C. π = ½ and 1 - π =
½.
D. π = 0 and 1 - π =
1.
65 Which distribution is most strongly right-skewed?

.
A. Binomial with n = 50, π

= .70
= .90
C. Binomial with n = 50, π
= .40
D. Binomial with n = 50, π
= .10
66 A random variable is binomially distributed with n = 16 and π = .40. The

. expected value and standard deviation of the variables are:
A. 2.00 and
1.24
B. 4.80 and
4.00
C. 6.40 and
1.96
D. 2.00 and
1.20

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

. trials is 20. The probability of "success" is:
A. .
25
B. .
50
C. .
75
D. .
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. .
617
4
B. .
382
6
C. .
813
1
D. .
186
9

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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. .
005
0
B. .
033
1
C. .
995
0
D. .
961
9
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. .
205
5
B. .
236
2
C. .
794
6
D. .
441
7

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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. .
865
8
B. .
302
0
C. .
563
9
D. .
134
2
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. .
063
9
B. .
142
4
C. .
019
6
D. .
083
5

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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. .
598
7
B. .
315
1
C. .
011
6
D. .
187
2
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. .
995
0
B. .
961
9
C. .
033
1
D. .
148
8

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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. .
350
4
B. .
200
1
C. .
617
7
D. .
266
8
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. .
561
5
B. .
277
5
C. .
716
1
D. .
038
8

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

. standard deviation of the variable X is approximately:
A. 0.45
8
B. 2.82
8
C. 1.68
0
D. 1.29
6
78 Suppose X is binomially distributed with n = 12 and π = .20. The

. probability that X will be less than or equal to 3 is:
A. .
558
4
B. .
794
6
C. .
236
2
D. .
763
8
79 Which Excel function would generate a single random X value for a

. binomial random variable with parameters n = 16 and π = .25?
A. =BINOM.DIST(RAND(), 16, .
25, 0)
B. =BINOM.DIST(0, 16, .25,
RAND())
C. =BINOM.INV(16, .25,
RAND())
D. =BINOM.INV(0, 16, .25,
RAND())

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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. 99.9
percent.
B. 97.2
percent.
C. 95.9
percent.
D. 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 π =
.50.
C. Its CDF shows the probability of each
value of X.
D. Its CDF is skewed right when π <
.50.

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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. .
868
1
B. .
992
1
C. .
367
0
D. .
007
6
83 The domain of X in a Poisson probability distribution is discrete and can

. include:
A. any real X
value.
B. any integer X
value.
C. any nonnegative integer X
value.
D. any X value except
zero.

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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. .
160
7
B. .
891
3
C. .
267
8
D. .
730
6
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. .
740
8
B. .
199
2
C. .
149
4
D. .
950
2

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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. .
051
8
B. .
042
7
C. .
100
5
D. .
152
3
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. .
087
5
B. .
090
2
C. .
098
8
D. .
091
9

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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. .
879
5
B. .
267
4
C. .
342
2
D. .
258
4
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. 0.034
9
B. 0.139
6
C. 0.966
6
D. 0.000
5
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.

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

.
A. 35.2
percent.
B. 58.9
percent.
C. 44.7
percent.
D. 31.1
percent.
92 The coefficient of variation for a Poisson distribution with λ = 4 is:

.
A. 35.2
percent.
B. 58.9
percent.
C. 50.0
percent.
D. 26.4
percent.
93 For which binomial distribution would a Poisson approximation be

. unacceptable?
A. n = 30, π =
0.02
B. n = 50, π =
0.03
C. n = 200, π =
0.10
D. n = 500, π =
0.01

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94 For which binomial distribution would a Poisson approximation be

. acceptable?
A. n = 60, π =
0.08
B. n = 100, π =
0.15
C. n = 40, π =
0.03
D. n = 20, π =
0.20
95 For which binomial distribution would a Poisson approximation not be

. acceptable?
A. n = 35, π =
0.07
B. n = 95, π =
0.01
C. n = 80, π =
0.02
D. n = 50, π =
0.03

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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. .
103
8
B. .
091
6
C. .
146
5
D. .
001
5
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. .
345
2
B. .
241
7
C. .
591
8
D. .
833
5

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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. .
005
3
B. .
007
6
C. .
992
3
D. .
055
5
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. .
937
2
B. .
062
8
C. .
164
7
D. .
227
5

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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. .
447
1
B. .
302
8
C. .
125
7
D. .
177
1
101 If X is a discrete uniform random variable ranging from 0 to 12, find P(X
. ≥ 10).
A. .
112
6
B. .
166
6
C. .
230
8
D. .
250
0

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102 If X is a discrete uniform random variable ranging from one to eight, find
. P(X < 6).
A. .
625
0
B. .
500
0
C. .
750
0
D. .
375
0
103 If X is a discrete uniform random variable ranging from one to eight, its
. mean is:
A. 4.
0
B. 4.
5
C. 5.
0
D. 5.
5
104 If X is a discrete uniform random variable ranging from 12 to 24, its mean
. is:
A. 18.
5.
B. 16.
0.
C. 18.
0.
D. 19.
5.

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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. .
322
2
B. .
120
9
C. .
879
1
D. .
677
8
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. .
308
7
B. .
168
1
C. .
360
2
D. .
831
9

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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. 0.942
1
B. 0.057
9
C. 0.737
3
D. 0.262
7
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. .
232
2
B. .
826
3
C. .
292
6
D. .
561
3

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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. .
039
7
B. .
029
5
C. .
080
8
D. .
053
3
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. .
019
2
B. .
002
5
C. .
024
7
D. .
020
0

lOMoARcPSD|36243665
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. .
065
6
B. .
856
1
C. .
590
4
D. .
409
5
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. 1
5
B. 2
0
C. 1
0
D. 1
7

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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. .
409
6
B. .
102
4
C. .
241
0
D. .
001
6
. interview is .20. What is the expected number of resumes you send out
until you get the first interview?
A. 5
B. 7
C. 1
0
D. 1
2

lOMoARcPSD|36243665
. interview is .20. What is the probability that you get your first interview
within the first five resumes that you send out?
A. .
672
3
B. .
102
4
C. .
241
0
D. .
001
6
credit limit. What is the probability that the first such rejection occurs
within the first 20 Visa transactions?
A. .
136
2
B. .
400
0
C. .
332
4
D. .
453
8

lOMoARcPSD|36243665
credit limit. What is the expected number of Visa transactions until the
first one is rejected?
A. 1
0
B. 2
0
C. 5
0
D. 9
8
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.

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120 If the probability of success is .25, what is the probability of obtaining the
. first success within the first three trials?
A. .
421
8
B. .
578
1
C. .
140
6
D. .
222
8
121 If the probability of success is .30, what is the probability of obtaining the
. first success within the first five trials?
A. .
002
4
B. .
831
9
C. .
168
1
D. .
997
6

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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 μ1 = 23, μ2 = 11, μ3 = 17. The
expected project completion time is:
A. 51
.
B. 23
.
C. 40
.
D. 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 σ1 = 5, σ2 = 4, σ3 =
6. The standard deviation of the overall project completion time is:
A. 8.7
7
B. 15.
0
C. 14.
2
D. 9.2
4

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124 A stock portfolio consists of two stocks X and Y. Their daily closing prices
. are independent random variables with standard deviations σX = 2.51
and σY = 5.22. What is the standard deviation of the sum of the closing
prices of these two stocks?
A. 33.5
5
B. 6.4
8
C. 7.7
3
D. 5.7
9
125 A stock portfolio consists of two stocks X and Y. Their daily closing prices
. are correlated random variables with variances σX2 = 3.51 and σY2 = 5.22,
and covariance σXY = -1.55. What is the standard deviation of the sum of
the closing prices of these two stocks?
A. 5.6
3
B. 7.1
8
C. 8.7
3
D. 2.6
8
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. 4
2
B. 6.4
8
C. 1
4
D. 3
2

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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. 2
B. 4
C. -
10
D. -
6

lOMoARcPSD|36243665
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
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.

lOMoARcPSD|36243665
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.
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
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
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

lOMoARcPSD|36243665
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
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 π > .50.
FALSE
Most outcomes would be on the right, so a longer left tail exists.
AACSB: Analytic
Blooms: Apply
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution
9. When π = .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
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

lOMoARcPSD|36243665
Blooms: Remember
Difficulty: 1 Easy
11. The Poisson distribution can be skewed either left or right, depending
on λ.
FALSE
Poisson is always right-skewed.
AACSB: Analytic
Blooms: Remember
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
13. As a rule of thumb, the Poisson distribution can be used to approximate

a binomial distribution when n ≥ 20 and π ≤ .05.
TRUE
The Poisson is a better approximation to binomial when n is large and π

is small.
AACSB: Analytic
Blooms: Remember
Learning Objective: 06-07 Use the Poisson approximation to the binomial (optional).

lOMoARcPSD|36243665
14. The hypergeometric distribution is skewed right.
FALSE
The hypergeometric is skewed right if s/N < .50 (and conversely).
AACSB: Analytic
Blooms: Remember
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 π is not constant.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
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

lOMoARcPSD|36243665
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
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 π is constant.
AACSB: Analytic
Blooms: Apply
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

lOMoARcPSD|36243665
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
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
21. The gender of a randomly chosen unborn child is a Bernoulli event.
TRUE
Two outcomes (0 or 1).
AACSB: Analytic
Blooms: Understand
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
23. The standard deviation of a Poisson random variable is the square root
of its mean.
TRUE
Review Poisson model.
AACSB: Analytic
Blooms: Remember

lOMoARcPSD|36243665
Difficulty: 1 Easy
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
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
26. The expected value of a random variable is its mean.
TRUE
The mean is another name for expected value.
AACSB: Analytic
Blooms: Remember
Multiple Choice Questions

lOMoARcPSD|36243665
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
28. The number of male babies in a sample of 10 randomly chosen babies

is a:
A. continuous random
variable.
B. Poisson random
variable.
C. binary random
variable.
D. binomial random
variable.
Constant probability of success in n trials.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy

lOMoARcPSD|36243665
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
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

lOMoARcPSD|36243665
31. Which is a not a discrete random variable?
A. The number of births in a hospital on a

given day
B. The number of fives obtained in four rolls
of a die
C. The hourly earnings of a call center employee in
Boston
D. 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
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.
Review characteristics of the distributions. A hypergeometric is

symmetric only if s/N = .50.
AACSB: Analytic
Blooms: Understand

lOMoARcPSD|36243665
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. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
Geometric model describes the number of trials until the first success.
AACSB: Analytic
Blooms: Apply
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. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
n = 12 Bernoulli trials with fixed probability of success would be a

binomial model.
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
35. Which distribution is most nearly appropriate to describe the number of

fatalities in Texas in a given year due to poisonous snakebites?
A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
Events per unit of time with no clear upper limit would resemble a
Poisson distribution.
AACSB: Analytic
Blooms: Apply
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. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
Geometric describes the number of trials to first success.
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
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. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
AACSB: Analytic
Blooms: Apply
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. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
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. Poisso
n
B. Hypergeomet
ric
C. Binomi
al
D. Unifor
m
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
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. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
41. Which model best describes the number of blemishes per sheet of
white bond paper?
A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
Events per unit of area with no clear upper limit would resemble a
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
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. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
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

lOMoARcPSD|36243665
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. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
Independent events per unit of time with no clear upper limit would be
Poisson.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
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. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
Sampling (n = 5 tourists selected) without replacement with known

number of "successes" (s = 10 Europeans) in the population (N = 40).
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
45. Which model best describes the number of births in a hospital until the
first twins are delivered?
A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
Geometric distribution describes the number of trials until the first

success.
AACSB: Analytic
Blooms: Apply
46. On a randomly chosen Wednesday, which probability model would you

use to describe the number of convenience store robberies in Los
Angeles?
A. Binomi
al
B. Poisso
n
C. Hypergeomet
ric
D. Geometr
ic
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
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. Binomi
al
B. Geometr
ic
C. Unifor
m
D. Poisso
n
Geometric distribution describes the number of trials until the first

success.
AACSB: Analytic
Blooms: Apply
48. Which distribution has a mean of 5?
A. Poisson with λ =
25.
= .05
C. 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

lOMoARcPSD|36243665
49. Of the following, the one that most resembles a Poisson random
variable is the number of:
A. heads in 200 flips of a fair

coin.
B. annual power failures at your
residence.
C. face cards in a bridge hand of 13
cards.
D. 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
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. $0.5
0
B. $0.2
5
C. $0.7
5
D. $1.0
0
Expected winning is (1/4000) × $1000 = $0.25.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

lOMoARcPSD|36243665
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. $0.5
0
B. $3.0
0
C. $1.5
0
D. $1.0
0
E(X) = (3/6) × $2 + (3/6) × (-$1) = $0.50.
AACSB: Analytic
Blooms: Apply
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. $0.0
0
B. $1.0
0
C. $0.5
0
D. $0.2
5
E(X) = (2/6) × $2 + (4/6) × (-$1) = $0.6667 - $0.6667 = 0.
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
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. $0.2
5
B. $0.5
0
C. $0.7
5
D. $1.0
0
E(X) = (.5) × $1 + (.5) × (-$.50) = $0.50 - $0.25 = $0.25.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
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. $100,00
0
B. $90,00
0
C. -
$10,00
0
D. $
0
E(X) = (1/9) × $900,000 = $100,000. ESCO only can expect to cover its
sunk cost (no profit).
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
Difficulty: 3 Hard
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. 1.
2
B. 1.
0
C. 1.
5
D. 2.
0
For each X, multiply X time P(X) and sum the values.
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
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. .
30
B. .
40
C. .
50
D. .
60
P(X ≥ 1) = 1 - P(X = 0) = 1 - .40 = .60.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy

lOMoARcPSD|36243665
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. .
10
B. .
40
C. .
70
D. .
90
P(X < 2) = P(X = 0) + P(X = 1) = .40 + .30 = .70.
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy

lOMoARcPSD|36243665
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. 1.
1
B. 1.
3
C. 1.
7
D. 1.
9
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
59. Given the following probability distribution, what is the expected value
of the random variable X?
A. 17
5
B. 15
0
C. 20
0
D. 20
5
AACSB: Analytic
Blooms: Apply
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.
Review characteristics of the Bernoulli process.
AACSB: Analytic

lOMoARcPSD|36243665
Blooms: Remember
Difficulty: 1 Easy
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
62. Which of the following is not a requirement of a binomial distribution?
A. Constant probability of
success
B. Only two possible Bernoulli
outcomes
C. Fixed number of
trials
D. Equally likely
outcomes
AACSB: Analytic
Blooms: Remember

lOMoARcPSD|36243665
63. The binomial distribution is symmetrical when:
A. π = 1 and 1 - π =
0.
B. π = ¼ and 1 - π =
¾.
C. π = ½ and 1 - π =
½.
D. π = 0 and 1 - π =
1.
AACSB: Analytic
Blooms: Remember
64. The variance will reach a maximum in a binomial distribution when:
A. π = 1 and 1 - π =
0.
B. π = ¼ and 1 - π =
¾.
C. π = ½ and 1 - π =
½.
D. π = 0 and 1 - π =
1.
Review formula for the binomial distribution standard deviation.
AACSB: Analytic
Blooms: Remember
Difficulty: 3 Hard

lOMoARcPSD|36243665
65. Which distribution is most strongly right-skewed?
A. Binomial with n = 50, π

= .70
= .90
C. Binomial with n = 50, π
= .40
D. Binomial with n = 50, π
= .10
AACSB: Analytic
Blooms: Understand
66. A random variable is binomially distributed with n = 16 and π = .40.

The expected value and standard deviation of the variables are:
A. 2.00 and
1.24
B. 4.80 and
4.00
C. 6.40 and
1.96
D. 2.00 and
1.20
AACSB: Analytic
Blooms: Remember

lOMoARcPSD|36243665
67. The expected value (mean) of a binomial variable is 15. The number of
trials is 20. The probability of "success" is:
A. .
25
B. .
50
C. .
75
D. .
30
Set E(X) = nπ = (20)π = 15 and solve for π.
AACSB: Analytic
Blooms: Understand
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. .
617
4
B. .
382
6
C. .
813
1
D. .
186
9
Use Appendix A with n = 8 and π = .90 to find P(X ≥ 7) or else use the
Excel function =1-BINOM.DIST(6,8,.90,1) = .8131.
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
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. .
005
0
B. .
033
1
C. .
995
0
D. .
961
9
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
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. .
205
5
B. .
236
2
C. .
794
6
D. .
441
7
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
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. .
865
8
B. .
302
0
C. .
563
9
D. .
134
2
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
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. .
063
9
B. .
142
4
C. .
019
6
D. .
083
5
Use Appendix A with n = 12 and π = .60 to find P(X ≥ 10) or else use
the Excel function =1-BINOM.DIST(9,12,.60,1) = .08344.
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
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. .
598
7
B. .
315
1
C. .
011
6
D. .
187
2
Use Appendix A with n = 10 and π = .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

lOMoARcPSD|36243665
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. .
995
0
B. .
961
9
C. .
033
1
D. .
148
8
Use Appendix A with n = 8 and π = .10 to find P(X < 3) or else use the
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
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. .
350
4
B. .
200
1
C. .
617
7
D. .
266
8
Use Appendix A with n = 10 and π = .70 to find P(X < 7) or else use the
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
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. .
561
5
B. .
277
5
C. .
716
1
D. .
038
8
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
77. A random variable X is distributed binomially with n = 8 and π = 0.70.

The standard deviation of the variable X is approximately:
A. 0.45
8
B. 2.82
8
C. 1.68
0
D. 1.29
6
Use the formula for the binomial standard deviation.
AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
78. Suppose X is binomially distributed with n = 12 and π = .20. The

probability that X will be less than or equal to 3 is:
A. .
558
4
B. .
794
6
C. .
236
2
D. .
763
8
Use Appendix A with n = 12 and π = .20 to find P(X ≤ 3) or else use the
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
79. Which Excel function would generate a single random X value for a
binomial random variable with parameters n = 16 and π = .25?
A. =BINOM.DIST(RAND(), 16, .
25, 0)
B. =BINOM.DIST(0, 16, .25,
RAND())
C. =BINOM.INV(16, .25,
RAND())
D. =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
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. 99.9
percent.
B. 97.2
percent.
C. 95.9
percent.
D. 72.9
percent.
Use Appendix A with n = 3 and π = .90.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

lOMoARcPSD|36243665
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 π =
.50.
C. Its CDF shows the probability of each
value of X.
D. Its CDF is skewed right when π <
.50.
Review definitions of the binomial distribution. The binomial domain is

X = 0, 1, ..., n.
AACSB: Analytic
Blooms: Remember
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. .
868
1
B. .
992
1
C. .
367
0
D. .
007
6
Use Appendix A with n = 7 and π = .02.
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
83. The domain of X in a Poisson probability distribution is discrete and can

include:
A. any real X
value.
B. any integer X
value.
C. any nonnegative integer X
value.
D. any X value except
zero.
For a Poisson random variable, X = 0, 1, 2, … (no upper limit).
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy

lOMoARcPSD|36243665
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. .
160
7
B. .
891
3
C. .
267
8
D. .
730
6
Use Appendix B with λ = 108/60 = 1.8.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

lOMoARcPSD|36243665
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. .
740
8
B. .
199
2
C. .
149
4
D. .
950
2
Use Appendix B with λ = 3.0.
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
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. .
051
8
B. .
042
7
C. .
100
5
D. .
152
3
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
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. .
087
5
B. .
090
2
C. .
098
8
D. .
091
9
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
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. .
879
5
B. .
267
4
C. .
342
2
D. .
258
4
Use Appendix B with λ = 16/10 = 1.6.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
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. 0.034
9
B. 0.139
6
C. 0.966
6
D. 0.000
5
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

lOMoARcPSD|36243665
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.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
91. The coefficient of variation for a Poisson distribution with λ = 5 is:
A. 35.2
percent.
B. 58.9
percent.
C. 44.7
percent.
D. 31.1
percent.
Use the coefficient of variation with standard deviation equal to the

square root of the mean.
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
92. The coefficient of variation for a Poisson distribution with λ = 4 is:
A. 35.2
percent.
B. 58.9
percent.
C. 50.0
percent.
D. 26.4
percent.
The Poisson standard deviation is the square root of the mean.
AACSB: Analytic
Blooms: Apply
93. For which binomial distribution would a Poisson approximation be

unacceptable?
A. n = 30, π =
0.02
B. n = 50, π =
0.03
C. n = 200, π =
0.10
D. n = 500, π =
0.01
We want n ≥ 20 and π ≤ .05.
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
94. For which binomial distribution would a Poisson approximation be

acceptable?
A. n = 60, π =
0.08
B. n = 100, π =
0.15
C. n = 40, π =
0.03
D. n = 20, π =
0.20
We want n ≥ 20 and π ≤ .05 for an acceptable Poisson approximation.
AACSB: Analytic
Blooms: Apply
95. For which binomial distribution would a Poisson approximation not be

acceptable?
A. n = 35, π=
0.07
B. n = 95, π=
0.01
C. n = 80, π=
0.02
D. n = 50, π=
0.03
We want n ≥ 20 and π ≤ .05 for an acceptable Poisson approximation.
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
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. .
103
8
B. .
091
6
C. .
146
5
D. .
001
5
Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (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

lOMoARcPSD|36243665
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. .
345
2
B. .
241
7
C. .
591
8
D. .
833
5
Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (3500)(.0004) = 1.4 and

use Appendix B to find P(X ≤ 2), or else use the Excel cumulative
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

lOMoARcPSD|36243665
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. .
005
3
B. .
007
6
C. .
992
3
D. .
055
5
Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (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

lOMoARcPSD|36243665
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. .
937
2
B. .
062
8
C. .
164
7
D. .
227
5
Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (.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

lOMoARcPSD|36243665
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. .
447
1
B. .
302
8
C. .
125
7
D. .
177
1
Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (180)(.02) = 3.6 and use

Appendix B to find P(X ≤ 1) or else use the Excel cumulative
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

lOMoARcPSD|36243665
101. If X is a discrete uniform random variable ranging from 0 to 12, find P(X
≥ 10).
A. .
112
6
B. .
166
6
C. .
230
8
D. .
250
0
3 out of 13 outcomes (don't forget to count 0 as an outcome).
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
102. If X is a discrete uniform random variable ranging from one to eight,

find P(X < 6).
A. .
625
0
B. .
500
0
C. .
750
0
D. .
375
0
We count five out of eight outcomes that meet this requirement.
AACSB: Analytic
Blooms: Apply
103. If X is a discrete uniform random variable ranging from one to eight, its
mean is:
A. 4.
0
B. 4.
5
C. 5.
0
D. 5.
5
The mean is halfway between the lower and upper limits 1 and 8.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy

lOMoARcPSD|36243665
104. If X is a discrete uniform random variable ranging from 12 to 24, its

mean is:
A. 18.5
.
B. 16.0
.
C. 18.0
.
D. 19.5
.
The mean is halfway between the lower and upper limits 12 and 24.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy

lOMoARcPSD|36243665
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. .
322
2
B. .
120
9
C. .
879
1
D. .
677
8
Since n/N < .05 we can use Appendix A with n = 10 and π = 96/480 = .
20 to find P(X ≥ 3).
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
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. .
308
7
B. .
168
1
C. .
360
2
D. .
831
9
Since n/N < .05 we can use Appendix A with n = 5 and π = 27/90 = .30
to find P(X ≥ 1).
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

lOMoARcPSD|36243665
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. 0.942
1
B. 0.057
9
C. 0.737
3
D. 0.262
7
20 to find P(X ≥ 2).
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
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. .
232
2
B. .
826
3
C. .
292
6
D. .
561
3
40 to find P(X = 4).
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

lOMoARcPSD|36243665
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. .
039
7
B. .
029
5
C. .
080
8
D. .
053
3
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

lOMoARcPSD|36243665
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. .
019
2
B. .
002
5
C. .
024
7
D. .
020
0
Use the formulas for the geometric PDF (not the CDF) with π = .02 to
find P(X = 3) = .02(1 - .02)3-1 = .02(.98)2 = .02(.9604) = .019208.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

lOMoARcPSD|36243665
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. .
065
6
B. .
856
1
C. .
590
4
D. .
409
5
find P(X = 5) = .10(1 - .10)5-1 = .10(.90)4 = .10(.6561) = .06561.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

lOMoARcPSD|36243665
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. 1
5
B. 2
0
C. 1
0
D. 1
7
The geometric mean is 1/π = 1/(.10) = 10.
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
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. .
409
6
B. .
102
4
C. .
241
0
D. .
001
6
find P(X = 4) = .20(1 - .20)4-1 = .20(.80)3 = .20(.512) = .1024.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
interview is .20. What is the expected number of resumes you send out
until you get the first interview?
A. 5
B. 7
C. 1
0
D. 1
2
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665

interview is .20. What is the probability that you get your first interview
within the first five resumes that you send out?
A. .
672
3
B. .
102
4
C. .
241
0
D. .
001
6
Use the formulas for the geometric CDF (not the PDF) with π = .20 to
find P(X ≤ 5) = 1 -(1-.20)5 = = 1 - (.80)5 = 1 - .32678 = .67232.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

lOMoARcPSD|36243665
customer's credit limit. What is the probability that the first such
rejection occurs within the first 20 Visa transactions?
A. .
136
2
B. .
400
0
C. .
332
4
D. .
453
8
find P(X ≤ 20) = 1 -(1-.02)20 = = 1 - (.98)20 = 1 - .6676 = .3324.
AACSB: Analytic
Blooms: Apply

lOMoARcPSD|36243665
customer's credit limit. What is the expected number of Visa
transactions until the first one is rejected?
A. 1
0
B. 2
0
C. 5
0
D. 9
8
AACSB: Analytic
Blooms: Apply
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

lOMoARcPSD|36243665
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
120. If the probability of success is .25, what is the probability of obtaining

the first success within the first three trials?
A. .
421
8
B. .
578
1
C. .
140
6
D. .
222
8
find P(X ≤ 3) = 1 -(1-.25)3 = 1 - (.75)3 = 1 - .421875 = .578125.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

lOMoARcPSD|36243665
121. If the probability of success is .30, what is the probability of obtaining

the first success within the first five trials?
A. .
002
4
B. .
831
9
C. .
168
1
D. .
997
6
find P(X ≤ 5) = 1 -(1-.30)5 = 1 - (.70)5 = 1 - .16807 = .83193.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

lOMoARcPSD|36243665
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 μ1 = 23, μ2 = 11, μ3 = 17.
The expected project completion time is:
A. 51
.
B. 23
.
C. 40
.
D. 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)

lOMoARcPSD|36243665
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 σ1 = 5,
σ2 = 4, σ3 = 6. The standard deviation of the overall project completion
time is:
A. 8.7
7
B. 15.
0
C. 14.
2
D. 9.2
4
The variances can be summed because the stages are independent

(Rule 4). You have to square the standard deviations to get the
variances σ12 = 25, σ22 = 16, σ32 = 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

lOMoARcPSD|36243665
124. A stock portfolio consists of two stocks X and Y. Their daily closing
prices are independent random variables with standard deviations σX =
2.51 and σY = 5.22. What is the standard deviation of the sum of the
closing prices of these two stocks?
A. 33.5
5
B. 6.4
8
C. 7.7
3
D. 5.7
9
The variances can be summed because the stages are independent

(Rule 4). You have to square the standard deviations to get the
variances σX2 = 6.3001 and σY2 = 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

lOMoARcPSD|36243665
125. A stock portfolio consists of two stocks X and Y. Their daily closing
prices are correlated random variables with variances σX2 = 3.51 and
σY2 = 5.22, and covariance σXY = -1.55. What is the standard deviation
of the sum of the closing prices of these two stocks?
A. 5.6
3
B. 7.1
8
C. 8.7
3
D. 2.6
8
Use the formula for the variance of correlated (nonindependent)

events. We sum the variances and covariance, and then take the
square root: σX+Y = [σX2 + σY2 + σXY ]1/2 = [3.51 + 5.22 - 1.55]1/2 =
[7.18]1/2 = 2.67955.
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

lOMoARcPSD|36243665
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. 4
2
B. 6.4
8
C. 1
4
D. 3
2
Use the rule for functions of a random variable (Rule 2) to get σY = 3σX
= (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
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. 2
B. 4
C. -
10
D. -
6
Use the rule for functions of a random variable (Rule 2) to get σY = 2σX
= (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

lOMoARcPSD|36243665

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True / False Questions

1. A random variable is a function or rule that assigns a numerical value to

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

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

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

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

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

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

10 The Poisson distribution describes the number of occurrences within a

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

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

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

14 The hypergeometric distribution is skewed right.

15 The hypergeometric distribution assumes that the probability of a success

16 The hypergeometric distribution is not applicable if sampling is done with

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

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

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

20 The Poisson distribution is appropriate to describe the number of babies

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

22 The Poisson distribution has only one parameter.

23 The standard deviation of a Poisson random variable is the square root of

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

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

Multiple Choice Questions

27 A discrete probability distribution:

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

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

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29 A discrete random variable:

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

30 Which is not a discrete random variable?

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

31 Which is a not a discrete random variable?

A. The number of births in a hospital on a

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32 Which statement is incorrect?

A. The Poisson distribution is always skewed

34 Which probability model is most nearly appropriate to describe the

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

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

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

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

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

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

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

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