FinalReviewNQ (3)

The probability that the account selected by the

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The probability that the account selected by the Auditor has a balance which is outside of the range between $6500 and $7000 is: A. .05 B. .10 C. 1.20 D. .96 E. .00 9. Suppose the length of time (in days) between sales for an automobile salesperson is modeled as an exponential distribution with a mean of 2 days. What is the probability the salesperson goes more than 5 days without a sale? A. .75 B. .92 C. .08 D. .40 E. None of the above. 10. During lunch time, customers arrive at Joe’s Lunch counter according to a Poisson distribution with an average of 2 per 30 second period. What is the probability of having more than two arrivals in a two-minute period? A. .9863 B. .9970 C. .0027 D .7619 E. None of the above 3
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Use the following to answer questions 11-12 The new owner of a beauty shop is trying to decide whether to hire one, two, or three beauticians. She estimates that profits next year (in thousands of dollars) will vary with demand for her services and has estimated demand in three categories low, medium and high. NUMBER OF BEAUTICIANS DEMAND LOW MEDIUM HIGH One 50 75 100 Two 0 100 100 Three 100 70 300 11. If she uses the optimistic criterion, how many beauticians will she decide to hire? A. one B. two C. three D. either one or two E. either two or three 12. If she uses the minimax regret criterion, how many beauticians will she decide to hire? A. one B. two C. three D. either one or two E. either two or three 4
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Use the following decision tree to respond to the next 5 questions: 1 2 4 3 6 7 9 8 5 11 1 0 Survey No Survey Survey Shows Low Demand P=.60 Survey Shows High Demand P=.40 Small Store Small Store Large Store Large Store Large Store Small Store Low Demand Low Demand Low Demand Low Demand Low Demand Low Demand High Demand High Demand High Demand High Demand High Demand High Demand 30 50 80 10 50 30 80 10 50 30 10 80 .75 .25 .125 .75 .875 .25 .125 .875 .50 .50 .50 .50 5
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13. What is the expected value at node 4? A. 47.50 B. 43.75 C. 70.00 D. 45.00 E. 71.25 14. What is the expected value of perfect information? A. 45.00 B. 40.00 C. 10.00 D. 5.00 E. 49.25 15. What is the expected value at node 2? A. 35.00 B. 7.50 C. 47.50 D. 49.50 E. 55.00 16. What is the best decision strategy for the manager? A. Do not do the survey, select a large store B. Do not do the survey, select a Small store C. Do the survey. If the survey shows low demand then select a small store; If the survey shows high demand then select a large store. D. Do the survey. If the survey shows low demand then select a large store; If the survey shows high demand then select a small store. E. None of the above is correct 17. What is the expected value of sample information? A. 45.00 B. 71.25 C. 49.50 D. 1.25 E. 4.50 6
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18. A statistician working for a car manufacturer developed a statistical model for predicting delivery time (the number of days between ordering a car and actual delivery) of a particular model for which there is a range of factory-fitted options. Use the output below to forecast the difference in delivery times for cars with 6 options and 9 options, rounded to two decimal places.
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The probability that the account selected by the Auditor...

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