Unformatted text preview: on the same day.
A. .1035
B. .0376
C. .9624
D. .8965
P(x ≥ 3) = 1  (P ≤ 2) = .8965 AACSB: Analytical Studies
Bloom's: Application
Difficulty: Medium
Topic: Binomial 1429 Chapter 01  An Introduction to Business Statistics 115. An important part of the customer service responsibilities of a cable company relates to
the speed with which trouble in service can be repaired. Historically, the data show that the
likelihood is 0.75 that troubles in a residential service can be repaired on the same day. For
the first five troubles reported on a given day, what is the probability that: Find the mean
number of troubles repaired on the same day.
A. 3.75
B. 0.94
C. 1.94
D. 2.50
= np = (5) (.75) = 3.75 AACSB: Analytical Studies
Bloom's: Application
Difficulty: Easy
Topic: Binomial 116. The Post Office has established a record in a major Midwestern city for delivering 90%
of its local mail the next working day. If you mail eight local letters, what is the probability
that all of them will be delivered the next day.
A. 1.0
B. .4305
C. .8131
D. .5695
P(x = 8) = .4305 AACSB: Analytical Studies
Bloom's: Application
Difficulty: Easy
Topic: Binomial 1430 Chapter 01  An Introduction to Business Statistics 117. The Post Office has established a record in a major Midwestern city for delivering 90%
of its local mail the next working day. Of the eight, what is the average number you expect to
be delivered the next day?
A. 3.6
B. 4.0
C. 7.2
D. 2.7
= np = (8) (.9) = 7.2 AACSB: Analytical Studies
Bloom's: Application
Difficulty: Easy
Topic: Binomial 118. The Post Office has established a record in a major Midwestern city for delivering 90%
of its local mail the next working day. Calculate the standard deviation of the number
delivered when 8 local letters are mailed.
A. .85
B. .72
C. 2.68
D. 2.83
Σ= = = = .85 AACSB: Analytical Studies
Bloom's: Application
Difficulty: Medium
Topic: Binomial 1431 Chapter 01  An Introduction to Business Statistics 119. The Post Office has established a record in a major Midwestern city for delivering 90%
of its local mail the next working day when there are 8 local letters mailed .What is the
probability that the number of delivered will be within 2 standard deviations of the mean?
A. .9950
B. .9619
C. .8131
D. .9996
P(7.2 ± 2(.85)) = p(7.2 ± 1.7) = P(5.5 ≤ x ≤ 8) = P(6 ≤ x ≤ 8) = (.4305) + (.3826) + (.1488)
= .9619 AACSB: Analytical Studies
Bloom's: Application
Difficulty: Hard
Topic: Binomial 120. A car wash loses $30 on rainy days and makes $120 on days when it does not rain. If the
probability of rain is 0.15, calculate the car wash's expected profit.
A. $90
B. $76.50
C. $106.50
D. $97.50
= (30) (.15) + (120) (.85) = 4.50 + 102 = 97.50 AACSB: Analytical Studies
Bloom's: Application
Difficulty: Medium
Topic: Discrete Probability Distribution 1432 Chapter 01  An Introduction to Business Statistics 121. An insurance company will insure a $75,000 Hummer for its full value against theft at a
premium of $1500 per year. Suppose that the probability that the Hummer will be stolen is
0.0075.
Calculate the insurance company's expected net profit.
A. $937.50
B. $551.25
C. $1488.75
D. $562.50
= (73500) (.0075) + (1500) (.9925) = 551.25 + 1488.75 = 937.50 AACSB: Analytical Studies
Bloom's: Application
Difficulty: Hard
Topic: Discrete Probability Distribution 122. An insurance company will insure a $75,000 Hummer for its full value against theft at a
premium of $1500 per year. Suppose that the probability that the Hummer will be stolen is
0.0075.
Find the premium that the insurance company should charge if its wants it's expected net
profit to be $2000?
A. $1437.50
B. $2551.25
C. $2562.50
D. $2062.50
2000 = (x75000) (.0075) + x (.9925) = .0075x  562.5 + .9925x = 2562.5 AACSB: Analytical Studies
Bloom's: Application
Difficulty: Hard
Topic: Discrete Probability Distribution 1433 Chapter 01  An Introduction to Business Statistics 123. A large disaster cleaning company estimates that 30% of the jobs it bids on are finished
within the bid time. Looking at a random sample of 8 jobs that is has contracted:
Calculate the probability that exactly 4 of the jobs were not completed within the bid time.
A. .0081
B. .2401
C. .0113
D. .1361
P(x = 4) = .1361 AACSB: Analytical Studies
Bloom's: Application
Difficulty: Medium
Topic: Binomial 124. A large disaster cleaning company estimates that 30% of the jobs it bids on are finished
within the bid time. Looking at a random sample of 8 jobs that is has contracted:
Calculate the mean number of jobs completed within the bid time.
A. 4.0
B. 2.4
C. 2.0
D. 5.6
= np = 8(.3) = 2.4 AACSB: Analytical Studies
Bloom's: Application
Difficulty: Medium
Topic: Binomial 1434 Chapter 01  An Introduction to Business Statistics 125. A large disaster cleaning company estimates that 30% of the jobs it bids on are finished
within the bid time. Looking at a random sample of 8 jobs that is has contracted:
Find the probability that x (number of jobs finished on time) is within one standard deviation
of the mea...
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 Winter '14

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