Unformatted text preview: of the standard deviation 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 1440 Chapter 01  An Introduction to Business Statistics 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 27. Which of the following is a continuous distribution?
A. Poisson
B. Hypergeometric
C. Exponential
D. Binomial 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. 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 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. 1441 Chapter 01  An Introduction to Business Statistics 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 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% 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. 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% 1442 Chapter 01  An Introduction to Business Statistics 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% 36. The fill weight of a certain brand of adult cereal is normally distributed with a mean of
910 grams and a standard deviation of 5 grams.
If we select one box of cereal at random from this population, what is the probability that it
will weigh less than 900 grams?
A. 4772
B. .9772
C. .9544
D. .0228
E. .0456 37. The fill weight of a certain brand of adult cereal is normally distributed with a mean of
910 grams and a standard deviation of 5 grams.
If we select one box of cereal at random from this population, what is the probability that it
will weigh more than 904 grams?
A. .8849
B. .3849
C. .1151
D. .7698
E. .2302 1443 Chapter 01  An Introduction to Business Statistics 38. The fill weight of a certain brand of adult cereal is normally distributed with a mean of
910 grams and a standard deviation of 5 grams. We calculated the value of z for a specific box
of this brand of cereal and the z value was negative. This negative z value indicates that:
A. We made a mistake in our calculations, as z must always be a nonnegative number.
B. The fill weight exceeds 910 grams.
C. The fill weight is less than 910 grams.
D. The fill weight is equal to 910 grams.
E. The fill weight may be more or less than 910 grams depending on the value of the standard
deviation. 39. Which of the following statements is not a property of the normal probability
distribution?
A. The normal distribution is symmetric.
B. 95.44% of all possible observed values of the random variable x are within plus or minus
three standard deviations of the population mean.
C. The mean, median, and mode are equal.
D. The area under the normal curve to the right of the mean is equal to the area under the
normal curve to the left of the mean.
E. All of the above answ...
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 Winter '14
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