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Unformatted text preview: on 23. The _____________ distribution would most likely be used to describe the distribution of
time between arrivals of customers at the grocery store.
A. Normal
B. Exponential
C. Poisson
D. Binomial
E. Uniform AACSB: Reflective Thinking
Bloom's: Analysis
Difficulty: Medium
Topic: Exponential Distribution 1478 Chapter 01  An Introduction to Business Statistics 24. The area under the normal curve between z = 0 and z = 1 is ________________ the area
under the normal curve between z = 1 and z = 2.
A. Less than
B. Greater than
C. Equal to
D. A, B, or C above dependent on the value of the mean
E. A, B, or C above dependent on the value of the standard deviation AACSB: Reflective Thinking
Bloom's: Analysis
Difficulty: Medium
Topic: Normal Distribution 25. Values of the standard normal random variable are measured
A. With reference to specific units
B. In the units in which the mean is measured
C. In the number of standard deviations from the mean
D. In squared units in which the mean is measured
E. None of the above AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Medium
Topic: Normal Distribution 26. If the random variable X has a mean of µ and a standard deviation σ then (X  µ)/σ has a
mean and standard deviation respectively:
A.
and
B.
and s
C. 1 and 0
D. 0 and 1 AACSB: Reflective Thinking
Bloom's: Synthesis
Difficulty: Medium
Topic: Normal Distribution 1479 Chapter 01  An Introduction to Business Statistics 27. Which of the following is a continuous distribution?
A. Poisson
B. Hypergeometric
C. Exponential
D. Binomial AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Topic: Exponential Distribution 28. The pricetoearning ratio for firms in a given industry is distributed according to normal
distribution. In this industry, a firm with a standard normal variable value of Z = 1:
A. Has an above average pricetoearning ratio.
B. Has a below average pricetoearnings ratio.
C. Has an average pricetoearnings ratio.
D. May have an above average or below average pricetoearnings ratio. AACSB: Reflective Thinking
Bloom's: Synthesis
Difficulty: Medium
Topic: Normal Distribution 29. The normal approximation of the binomial distribution is appropriate when:
A. np ≥ 5
B. n(1  p) ≥ 5
C. np ≤ 5
D. n(1  p) ≤ .5 and np ≤ 5
E. np ≥ .5 and n(1  p) ≥ 5 AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Topic: Binomial  Normal Approximation 1480 Chapter 01  An Introduction to Business Statistics 30. If the wages of workers for a given company are normally distributed with a mean of $15
per hour, then the proportion of the workers earning more than $13 per hour:
A. Is greater than the proportion earning less than $13 per hour.
B. Is greater than the proportion earning less than $18 per hour.
C. Is less than 50%.
D. Is less than the proportion earning more than the mean wage. AACSB: Reflective Thinking
Bloom's: Analysis
Difficulty: Hard
Topic: Normal Distribution 31. A student's grade on an examination was transformed to a z value which is negative.
Therefore, we know that he scored:
A. Higher than 16% of the class
B. Higher than 45% of the class
C. Above the first quartile
D. Below the mean
E. Lower than 16% of the class AACSB: Analytical Studies
Bloom's: Comprehension
Difficulty: Medium
Topic: Normal Distribution 32. A study shows that employees that begin their work day at 9:00 a.m. vary their times of
arrival uniformly from 8:40 a.m. to 9:30 a.m. The probability that a randomly chosen
employee reports to work between 9:00 and 9:10 is:
A. 40%
B. 20%
C. 10%
D. 30%
E. 16.7% AACSB: Analytical Studies
Bloom's: Application
Difficulty: Medium
Topic: Uniform Distribution 1481 Chapter 01  An Introduction to Business Statistics 33. The relationship between the standard normal random variable Z and normal random
variable X is that:
A. Only the normal random variable X is continuous.
B. Only the standard normal variable Z is continuous.
C. The standard normal variable Z counts the number of standard deviations that the value of
the normal random variable X is away from its mean.
D. The values of the standard normal random variable Z cannot be negative.
E. The values of the normal random variable X cannot be negative. AACSB: Reflective Thinking
Bloom's: Synthesis
Difficulty: Hard
Topic: Normal Distribution 34. The MPG (Miles per Gallon) for a midsize car is normally distributed with a mean of 32
and a standard deviation of .8. What is the probability that the MPG for a selected midsize
car would be: Less than 33.2?
A. 43.32%
B. 6.68%
C. 93.32%
D. 86.64%
E. 13.36% AACSB: Analytical Studies
Bloom's: Application
Difficulty: Medium
Topic: Normal Distribution 35. The MPG (Miles per Gallon) for a midsize car is normally distributed with a mean of 32
and a standard deviation of .8. What is the probability that the MPG for a selected midsize
car would be: More than 33.2?
A. 43.32%
B. 6.68%
C. 93.32%
D. 86.64%
E. 13.36% AACSB: Analytical Studies
Bloom's: Application
Difficulty: Medium
Topic: Normal Distribution 1482 Chapter 01  An Introduction to...
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