A dry cleaning business offers a pick up and delivery

77) A dry cleaning business offers a pick - up and delivery service for a 10 percent
surcharge. Management believes 60 percent of the existing customers will take
advantage of this service. They are also considering offering customers the option
of opening an account and receiving monthly bills. They believe 60 percent of
customers (regardless of whether or not they use the pick - up service) will use the
account service. If the two services are introduced to the market, what is the
probability a customer uses neither of these services?
A) 0.16
B) 0.24
C) 0.80
D) 0.36
E) None of the above
Answer: A
Diff: 2
Topic: STATISTICALLY INDEPENDENT EVENTS
AACSB: Analytic Skills
78) A company is considering producing some new Gameboy electronic games.
Based on past records, management believes that there is a 70 percent chance
that each of these will be successful and a 30 percent chance of failure. Market
research may be used to revise these probabilities. In the past, the successful
products were predicted to be successful based on market research 90 percent of
the time. However, for products that failed, the market research predicted these
would be successes 20 percent of the time. If market research is performed for a
new product, what is the probability that the product will be successful if the
market research indicates a failure?
E
Diff: 3
Topic: REVISING PROBABILITIES WITH BAYES' THEOREM
AACSB: Analytic Skills

79) Which distribution is helpful in testing hypotheses about variances?
B
Diff: 2
Topic: THE F DISTRIBUTION
80) A company is considering producing two new electronic games designed for
the popular Gameboy toy. Based on market data, management believes there is a
60 percent chance that a "cops and robbers" game will be successful and a 40
percent chance that a "let's play house" game will be successful. As these
products are completely different, it may be assumed that the success of one is
totally independent of the success of the other. If two products are introduced to
the market, what is the probability that both are successful?
D
81) A company is considering producing two new electronic games designed for
the popular Gameboy toy. Based on market data, management believes that there
is a 60 percent chance that a "cops and robbers" game will be successful and a 40
percent chance that "let's play house" game will be successful. As these products
are completely different, it may be assumed that the success of one is totally
independent of the success of the other. If two products are introduced to the
market, what is the probability that both are failures?
A) 0.16
B) 0.24
C) 0.80
D) 0.36
E) None of the above
Answer: B
Diff: 2
Topic: STATISTICALLY INDEPENDENT EVENTS
AACSB: Analytic Skills