ANSWER:
(a) expected value = 1.0
(b) variance = 1(.4) + 0(.3) + 1(.2) + 4(.1) = 1.0
(c) P(2 or more) = 0.2 + 0.1 = 0.3 {moderate, PROBABILITY DISTRIBUTIONS, AACSB: Analytic
Skills}

Quantitative Analysis for Management Render 10th Edition Test Bank

Quantitative Analysis for Management Render 10th Edition Test Bank
2.118
Fast Service Store has maintained daily sales records on the various size "Cool Drink" sales.
Assuming that past performance is a good indicator of future sales,
“Cool Drink”
Number
Price
Sold
$0.50
75
$0.75
120
$1.00
125
$1.25
80
Total
400
what is the probability of a customer purchasing a $1.00 "Cool Drink?"
what is the probability of a customer purchasing a $1.25 "Cool Drink?"
what is the probability of a customer purchasing a "Cool Drink" that costs greater than or equal to $1.00?
what is the expected value of a "Cool Drink" ?
what is the variance of a "Cool Drink" ?
ANSWER:
(a)
125/400 = 0.3125
(b) 80/400 = 0.20 (c) 205/400 = 0.5125

(d) .5(.1875) + .75(.3) + 1(.3125) + 1.25(.2) = .88125 (e) 0.064 {hard, PROBABILITY
DISTRIBUTIONS, AACSB: Analytic Skills}
2.119
A southwestern tourist city has records indicating that the average daily temperature in the
summer is 82 degrees F, which is normally distributed with a standard deviation of 3 degrees F. Based on
these records, determine:
the probability of a daily temperature between 79 degrees F and 85 degrees F
the probability that the daily temperature exceeds 90 degrees F
the probability that the daily temperature is below 76 degrees F
ANSWER: (a) P(79<X<85) = 0.68268 (b) P(X>90) = 0.00379 (c) P(X<76) = 0.02275 {moderate, THE
NORMAL DISTRIBUTION, AACSB: Analytic Skills}
2.120
Using the table for finding the areas under normal curves, find the area under a normal curve with
a mean of 200 and a standard deviation of 10 between the values of:
200 to 205
195 to 205
200 to 215
195 to 215
186.5 to 217
ANSWER: (a) 0.19146 (b) 0.38292 (c) 0.43319 (d) 0.62465 (e) 0.86692 {hard, THE NORMAL
DISTRIBUTION, AACSB: Analytic Skills}

Quantitative Analysis for Management Render 10th Edition Test Bank

Quantitative Analysis for Management Render 10th Edition Test Bank
2.121
The time required to complete a project is known to be normally distributed with a mean of 44
weeks and a standard deviation of 8 weeks.
What is the probability that the project is finished in 40 weeks or fewer?
What is the probability that the project is finished in 52 weeks or fewer?
There is an 95 percent chance that the project will be finished in fewer than how many weeks?
ANSWER: (a) 0.30854 (b) 0.84134 (c) 44 + 1.645(8) = 57.16 {moderate, THE NORMAL
DISTRIBUTION, AACSB: Analytic Skills}
2.122
Arrivals in a university advising office during the week of registration are known to follow a
Poisson distribution with an average of 4 people arriving each hour.
What is the probability that exactly 4 people will arrive in the next hour?
What is the probability that exactly 5 people will arrive in the next hour?
ANSWER: (a) P(X=4) = 0.1954 (b) P(X=5) = 0.1563 {hard, THE POISSON DISTRIBUTION, AACSB:
Analytic Skills}
SHORT ANSWER/ESSAY
2.123
Explain why event probabilities range from zero to one.
ANSWER: Zero represents no chance of occurrence, while one represents a 100 percent chance of
occurrence. Any number between zero and one represents that particular event’s chance of occurrence.
Any negative number or number exceeding one has no meaning for an event probability. {moderate,
FUNDAMENTAL CONCEPTS, AACSB: Reflective Thinking}
2.124
Using a standard deck of 52 cards, explain why the situation of drawing a 7 and a club is not
collectively exhaustive.