MGMT 1050 Lecture Notes - Financial Analyst, Startup Company, Insurance Fraud

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27 Jan 2013
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Some Important Discrete Probability Distributions 117
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 likely be 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 evenly enrolls undergraduate and graduate students. If a random sample of 4
students is selected from the program to be interviewed about 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
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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
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Some Important Discrete Probability Distributions 119
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
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