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An important part of the customer service

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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 1-429 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 1-430 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 1-431 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 1-432 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 = (x-75000) (.0075) + x (.9925) = .0075x - 562.5 + .9925x = 2562.5 AACSB: Analytical Studies Bloom's: Application Difficulty: Hard Topic: Discrete Probability Distribution 1-433 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 1-434 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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