BNAL 206 Exam 2NAME (print) _____________________________Instructions: The last page is the formula sheet. You can tear it off. Pages 7-10 are theanswer sheet. Pages 6 and 10 are intentionally left blank. PUT ANYTHING YOU WANTGRADED ON THE ANSWER SHEET SECTION. Print your name on the top of this pageand sign your name at the beginning of the answer sheet. You must return everything exceptthe formula sheet.PART 1, MULTIPLE CHOICE (5 pts each)1. The total area under the standard normal curve is alwaysa) 0b) .50c) 1d) equal to the mean

Questions 2-4 refer to the following information.The table below describes a situation in which an investor must select between three possible stocks (A,B, or C) with the performance (1 year profit on a $1000 investment) of each stock dependent on futureeconomic conditions (states of nature). The payoff table isInvestmentABCRecession35-5060StateSlow growth703040Of nature Strong Growth90150752. If the Hurwicz method with = .8 is used to reach a decision, the value of H for Investment Cwill be

3. If the investor selects investment A and it turns out that the economy has slow growth, the regret(lost opportunity) is

4. If the conservative philosophy of decision making is utilized, the investor should chooseinvestment

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5. The manager of a local credit union has determined that the number of customers arriving at thedrive-through window follows a Poisson distribution with a mean of 4.2 per hour. Here are thePoisson probability distributions with a mean of 4.2.Probability Density Function Poisson with mean = 4.2x P( X = x )0 0.0149961 0.0629812 0.1322613 0.1851654 0.1944245 0.1633166 0.1143217 0.0685938 0.0360119 0.01680510 0.00705811 0.002695Cumulative Distribution Function Poisson with mean = 4.2x P( X <= x )0 0.015001 0.077982 0.210243 0.395404 0.589835 0.753146 0.867467 0.936068 0.972079 0.9888710 0.9959311 0.9986312 0.9995713 0.99987The probability that more than 4 customers arrive in a one hour period is approximatelya).16b).19c).25d).41e).59f).75

6. The Hurwicz method of decision making will be most similar to the conservative method when thecoefficient of optimism is

7 Every week the Barbados Tourist Board interviews six randomly chosen vacationers on the islandabout their experience. In general, each vacationer’s comments can be classified as mainly positive ormainly negative. The responses are then published in the Visitor newspaper. Suppose that only 5% of allvisitors to Barbados are dissatisfied with their visit. It is desired to determine the probability that morethan one visitor of the six interviewed will express negative comments? Which of the followingprobability models should be used to find this probability?