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Unformatted text preview: AACSB: Analytical Studies Bloom's: Application Difficulty: Medium Topic: Discrete Probability Distribution 92. If X has the probability distribution compute the expected value of X. A. 1.0 B. 0.3 C. 0.7 D. 0.5 E[X] = -1(.2) + 0(.3) + 1(.5) = .3 AACSB: Analytical Studies Bloom's: Application Difficulty: Medium Topic: Discrete Probability Distribution 1-418 Chapter 01 - An Introduction to Business Statistics 93. If X has the probability distribution compute the expected value of X. A. 1.3 B. 1.0 C. 2.4 D. 1.8 E[X] = (-2) (.2) + (-1) (.2) + (1) (.2) + (2) (.2) + (9) (.2) = 1.8 AACSB: Analytical Studies Bloom's: Application Difficulty: Medium Topic: Discrete Probability Distribution 94. X has the following probability distribution P(X): Compute the expected value of X. A. 2.5 B. 1.0 C. 1.6 D. 0.6 E[X] = (1) (.1) + (2) (.5) + (3) (.2) + (4) (.2) = 2.5 AACSB: Analytical Studies Bloom's: Application Difficulty: Medium Topic: Discrete Probability Distribution 1-419 Chapter 01 - An Introduction to Business Statistics 95. X has the following probability distribution P(X): Compute the variance value of X. A. 1.58 B. .955 C. .912 D. .625 E[X] = (1) (.1) + (2) (.5) + (3) (.2) + (4) (.2) = 2.5 = (1 - 2.5)2 (.1) + (2 - 2.5)2 (.5) + (3 - 2.5)2 (.2) + (4 - 2.5)2 (.2) = .9125 AACSB: Analytical Studies Bloom's: Application Difficulty: Medium Topic: Discrete Probability Distribution 96. Historical data for a local steel manufacturing company shows that the average number of defects per standard sheet of steel is 2. In addition, the number of defects per unit is distributed according to Poisson distribution. What is the probability that there will be a total of 7 defects on four standard sheets of steel? A. .8750 B. .1221 C. .0573 D. .1396 AACSB: Analytical Studies Bloom's: Application Difficulty: Medium Topic: Poisson 1-420 Chapter 01 - An Introduction to Business Statistics 97. Historical data for a local steel manufacturing company shows that the average number of defects per standard sheet of steel is 2. In addition, the number of defects per unit is distributed according to Poisson distribution. A batch has just been completed. What is the probability that the first three units manufactured in this batch will contain at least a total of 4 defects? A. .8488 B. .7149 C. .1512 D. .2851 P(X ≥ 4) = 1 - [P(X = 0) + P(X = 1) + P(X = 2) + P(X = 3)] P(X ≥ 4) = 1 - (.0025 + .0149 + .0446 + .0892) = .8488 AACSB: Analytical Studies Bloom's: Application Difficulty: Medium Topic: Poisson 98. Historical data for a local steel manufacturing company shows that the average number of defects per standard sheet of steel is 2. In addition, the number of defects per unit is distributed according to Poisson distribution. Determine the standard deviation of the number of defective units for 32 sheets of metal. A. 2 B. 32 C. 64 D. 8 AACSB: Analytical Studies Bloom's: Application Difficulty: Easy Topic: Poisson 1-421 Chapter 01 - An Introduction to Business Statistics 99. Consider the experiment of tossing a fair coin three times and observing the number of heads that result (X = number of heads). Determine the expected number of heads. A. 1.5 B. 1.0 C. 2.0 D. 1.1 AACSB: Analytical Studies Bloom's: Application Difficulty: Hard Topic: Discrete Probability Distribution 100. Consider the experiment of tossing a fair coin three times and observing the number of heads that result (X = number of heads). What is the variance for this distribution? A. 1.5 B. 1.22 C. 0.75 D. 0.87 AACSB: Analytical Studies Bloom's: Application Difficulty: Hard Topic: Discrete Probability Distribution 1-422 Chapter 01 - An Introduction to Business Statistics 101. Consider the experiment of tossing a fair coin three times and observing the number of heads that result (X = number of heads). What is the standard deviation for this distribution? A. 1.5 B. 1.22 C. 0.75 D. 0.87 AACSB: Analytical Studies Bloom's: Application Difficulty: Hard Topic: Discrete Probability Distribution 102. Consider the experiment of tossing a fair coin three times and observing the number of heads that result (X = number of heads). If you were asked to play a game in which you tossed a fair coin three times and were given $2 for every head you threw, how much would you expect to win on average? A. $3 B. $2 C. $6 D. $9 AACSB: Analytical Studies Bloom's: Application Difficulty: Hard Topic: Discrete Probability Distribution 1-423 Chapter 01 - An Introduction to Business Statistics 103. A pharmaceutical company has determined that if a new cholesterol-reducing drug is manufactured (introduced to the market), the following probability distribution will describe this drug's contribution to the company's profits during the next six months. The company management has decided to market this product if the expected contribution to profit for the next six months is more than $90,000. Based on the information given above, should the company begin manufacturing the new drug? A. Yes, begin manufacturing B. No, don't begin manufac...
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This document was uploaded on 01/20/2014.

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