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University of Toronto St. George

Rotman Commerce

RSM260H1

Arshoff.Alana

Winter

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Eco 220 – Lecture 13
FINAL TEST REVIEW
November 30, 2012
Question 1
A corporation produces packages of paper clips. The number of clips per package is random with a mean
of 80 and a standard deviation of 2.4. The cost in cents of producing a package of clips is (10 + 1.5*X),
where X is the number of clips in the package. The revenue from selling the package, however many
clips are in it, is $1.50. If profit is defined as the difference between revenue and cost, what is the mean
and standard deviation of profit per package?
A. 0.20, 0.018
B. 0.20 , 0.036
C. 0.20, 0.332
D. 0.25, 0.018
E. None of the above
Question 2
Consider a binomially distributed random variable X where the probability of success is 0.15
If the number of trails of 10. What is the probability that the number of successes is within one standard
deviation of the mean?
A. 62%
B. 64%
C. 66%
D. 68%
E. None of the above
Question 3
If the number of trials is 1000, what is the probability that the number of successes is within one
standard deviation of the mean?
A. 62%
B. 64%
C. 66%
D. 68%
E. 70% Question 4
If the grades for this exam are normally distributed with a mean of 82 and a variance of 20, what is the
minimum grade would you have to have to make the top 15

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