A dry cleaning business offers a pick up and delivery

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77) A dry cleaning business offers a pick-up and delivery service for a 10 percentsurcharge. Management believes 60 percent of the existing customers will takeadvantage of this service. They are also considering offering customers the optionof opening an account and receiving monthly bills. They believe 60 percent ofcustomers (regardless of whether or not they use the pick-up service) will use theaccount service. If the two services are introduced to the market, what is theprobability a customer uses neither of these services?A) 0.16B) 0.24C) 0.80D) 0.36E) None of the aboveAnswer:ADiff: 2
Topic:STATISTICALLY INDEPENDENT EVENTSAACSB:Analytic Skills78) A company is considering producing some new Gameboy electronic games.Based on past records, management believes that there is a 70 percent chancethat each of these will be successful and a 30 percent chance of failure. Marketresearch may be used to revise these probabilities.In the past, the successfulproducts were predicted to be successful based on market research 90 percent ofthe time.However, for products that failed, the market research predicted thesewould be successes 20 percent of the time.If market research is performed for anew product, what is the probability that the product will be successful if themarket research indicates a failure?EDiff: 3
Topic:REVISING PROBABILITIES WITH BAYES' THEOREMAACSB:Analytic Skills
79) Which distribution is helpful in testing hypotheses about variances?BDiff: 2
Topic:THE F DISTRIBUTION80) A company is considering producing two new electronic games designed forthe popular Gameboy toy.Based on market data, management believes there is a60 percent chance that a "cops and robbers" game will be successful and a 40percent chance that a "let's play house" game will be successful.As theseproducts are completely different, it may be assumed that the success of one istotally independent of the success of the other.If two products are introduced tothe market, what is the probability that both are successful?D
81) A company is considering producing two new electronic games designed forthe popular Gameboy toy.Based on market data, management believes that thereis a 60 percent chance that a "cops and robbers" game will be successful and a 40percent chance that "let's play house" game will be successful.As these productsare completely different, it may be assumed that the success of one is totallyindependent of the success of the other.If two products are introduced to themarket, what is the probability that both are failures?A) 0.16B) 0.24C) 0.80D) 0.36E) None of the aboveAnswer:BDiff: 2
Topic:STATISTICALLY INDEPENDENT EVENTSAACSB:Analytic Skills

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Term
Spring
Professor
Smith
Tags
Normal Distribution, Probability theory, AACSB

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