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York University

Management

MGMT 1050

all

Winter

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Some Important Discrete Probability Distributi117
CHAPTER 5: SOME IMPORTANT DISCRETE
PROBABILITY DISTRIBUTIONS
1. Thirty-six of the staff of 80 teachers at a local intermediate school are certified in Cardio-
Pulmonary Resuscitation (CPR). In 180 days of school, about how many days can we expect that
the teacher on bus duty will likelybe certified in CPR?
a) 5 days
b) 45 days
c) 65 days
d) 81 days
ANSWER:
d
TYPE: MC DIFFICULTY: Moderate
KEYWORDS: binomial distribution, mean
2. A campus program evenlyenrolls undergraduate and graduate students. If a random sample of 4
students is selected from the program to be interviewedabout the introduction of a new fast food
outlet on the ground floor of the campus building, what is the probability that all 4 students
selected are undergraduate students?
a) 0.0256
b) 0.0625
c) 0.16
d) 1.00
ANSWER:
b
TYPE: MC DIFFICULTY: Difficult
KEYWORDS: binomial distribution
3. A probability distribution is an equation that
a) associates a particular probability of occurrence with each outcome in the sample space.
b) measures outcomes and assigns values of X to the simple events.
c) assigns a value to the variability in the sample space.
d) assigns a value to the center of the sample space.
ANSWER:
a
TYPE: MC DIFFICULTY: Moderate
KEYWORDS: probability distribution 118 Some Important Discrete Probability Distributions
4. The connotation "expected value" or "expected gain" from playing roulette at a casino means
a) the amount you expect to "gain" on a single play.
b) the amount you expect to "gain" in the long run over many plays.
c) the amount you need to "break even" over many plays.
d) the amount you should expect to gain if you are lucky.
ANSWER:
b
TYPE: MC DIFFICULTY: Easy
KEYWORDS: expected value
5. Which of the following about the binomial distribution is not a true statement?
a) The probability of success must be constant from trial to trial.
b) Each outcome is independent of the other.
c) Each outcome may be classified as either "success" or "failure."
d) The random variable of interest is continuous.
ANSWER:
d
TYPE: MC DIFFICULTY: Easy
KEYWORDS: binomial distribution, properties
6. In a binomial distribution
a) the random variable X is continuous.
b) the probability of success p is stable from trial to trial.
c) the number of trials n must be at least 30.
d) the results of one trial are dependent on the results of the other trials.
ANSWER:
b
TYPE: MC DIFFICULTY: Easy
KEYWORDS: binomial distribution, properties
7. Whenever p = 0.5, the binomial distribution will
a) always be symmetric.
b) be symmetric only if n is large.
c) be right-skewed.
d) be left-skewed.
ANSWER:
a
TYPE: MC DIFFICULTY: Moderate
KEYWORDS: binomial distribution, properties Some Important Discrete Probability Distributio119
8. Whenever p = 0.1 and n is small, the binomial distribution will be
a) symmetric.
b) right-skewed.
c) left-skewed.
d) None of the above.
ANSWER:
b
TYPE: MC DIFFICULTY: Moderate
KEYWORDS: binomial distribution, properties
9. If n = 10 and p = 0.70, then the mean of the binomial distribution is
a) 0.07
b) 1.45.
c) 7.00
d) 14.29
ANSWER:
c
TYPE: MC DIFFICULTY: Easy
KEYWORDS: binomial distribution, mean
10. If n = 10 and p = 0.70, then the standard deviation of the binomial distribution is
a) 0.07
b) 1.45
c) 7.00
d) 14.29
ANSWER:
b
TYPE: MC DIFFICULTY: Easy
KEYWORDS: binomial distribution, standard deviation
11. If the outcomes of a random variable follow a Poisson distribution, then their
a) mean equals the standard deviation.
b) median equals the standard deviation.
c) mean equals the variance.
d) median equals the variance.
ANSWER:
c
TYPE: MC DIFFICULTY: Easy
KEYWORDS: Poisson distribution, mean, standard deviation, properties 120 Some Important Discrete Probability Distributions
12. What type of probability distribution will the consulting firm most likely employ to analyze the
insurance claims in the following problem?
An insurance company has called a consulting firm to determine if the company has an
unusually high number of false insurance claims. It is known that the industry proportion for
false claims is 3%. The consulting firm has decided to randomly and independently sample
100 of the company’s insurance claims. They believe the number of these 100 that are false
will yield the information the company desires.
a) binomial distribution.
b) Poisson distribution.
c) hypergeometric distribution.
d) none of the above.
ANSWER:
a
TYPE: MC DIFFICULTY: Difficult
KEYWORDS: binomial distribution, properties
13. The covariance
a) must be between -1 and +1.
b) must be positive.
c) can be positive or negative.
d) must be less than +1.
ANSWER:
c
TYPE: MC DIFFICULTY: Easy
KEYWORDS: covariance, properties
14. What type of probability distribution will most likely be used to analyze warranty repair needs on
new cars in the following problem?
The service manager for a new automobile dealership reviewed dealership records of the past
20 sales of new cars to determine the number of warranty repairs he will be called on to
perform in the next 90 days. Corporate reports indicate that the probability any one of their
new cars needs a warranty repair in the first 90 days is 0.05. The manager assumes that calls
for warranty repair are independent of one another and is interested in predicting the number
of warranty repairs he will be called on to perform in the next 90 days for this batch of 20
new cars sold.
a) binomial distribution.
b) Poisson distribution.
c) hypergeometric distribution.
d) none of the above.
ANSWER:
a
TYPE: MC DIFFICULTY: Difficult
KEYWORDS: binomial distribution, properties Some Important Discrete Probability Distributions 121
15. What type of probability distribution will most likely be used to analyze the number of chocolate
chip parts per cookie in the following problem?
The quality control manager of Marilyn’s Cookies is inspecting a batch of chocolate chip
cookies. When the production process is in control, the average number of chocolate chip
parts per cookie is 6.0. The manager is inter

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