Business Statistics

Quiz 2
Maximum Marks: 20
Minutes

Maximum Duration: 20

1. Which one of these variables is a continuous random variable?

a. The number of women taller than 68 inches in a random sample of 5 women.
b. The number of correct guesses on a multiple choice test.
c. The time it takes a randomly selected student to complete an exam.
d. The number of tattoos a randomly selected person has.
2. Pulse rates of adult men are approximately normal with a mean of 70 and a standard deviation of
8. Which choice correctly describes how to find the proportion of men that have a pulse rate
greater than 78?
a. Find the area to the right of z =1 under a standard normal curve.
b. Find the area to the left of z = 1 under a standard normal curve.
c. Find the area to the left of z = 1 under a standard normal curve.
d. Find the area between z = 1 and z = 1 under a standard normal curve.
3. What is the median of the standard normal distribution?
a.
b.
c.
d.

0
1
0.5
This cannot be determined

4. In the textile industry, a manufacturer is interested in the number of blemishes or flaws occurring
in each 100 feet of material. The probability distribution that has the greatest chance of applying
to this situation is the
a. normal distribution
b. binomial distribution
c. Poisson distribution
d. uniform distribution
5. Which of the following is not a property of a binomial experiment?
a. the experiment consists of a sequence of n identical trials
b. each outcome can be referred to as a success or a failure
c. the probabilities of the two outcomes can change from one trial to the next
d. the trials are independent
6. Which one of these variables is a binomial random variable?
a. time it takes a randomly selected student to complete a multiple choice exam
b. number of textbooks a randomly selected student bought this term
c. number of women taller than 68 inches in a random sample of 5 women
d. number of CDs a randomly selected person owns

7. Suppose 60% of a herd of cattle is infected with a particular disease. Let Y = the number of nondiseased cattle in a sample of size 5. The distribution of Y is
a. binomial with n = 5 and p = 0.6
b. binomial with n = 5 and p = 0.4
c. binomial with n = 5 and p = 0.5
d. Poisson with = .6

8. Consider the following probability distribution:

Find the mean of the random variable x.
a. 5
b. 35
c. 0.21

P x

5!
0.7 x 0.3 5 x , x 0, 1, ..., 5
x! 5 x !
d. 3.5

9. For a binomial distribution

a. n must assume a number between 1 and 20.
c. There must be at least 3 possible outcomes

b. P must be multiple of 0.10

d. None of the above

10. Which of the following is not true concerning discrete probability distribution?
a. The probability of any specific value is between 0 and 1, inclusive.
b. The mean of the distribution is between the smallest and largest value of the discrete random
variable.
c. The sum of all probabilities is 1.
d. The standard deviation of the distribution is between -1 and 1.
11. A business evaluates a proposed venture as follows. It stands to make a profit of $10,000 with
probability 3/20, to make profit of $5,000 with probability 9/20, to break even with probability
1/4 and to lose $5,000 with probability 3/20. The expected profit in dollars is: i.e.
a. 1,500

b. 0

c. -1,500

d. 3,000

12. The distribution of the number of people logging into a large computer network during a five
second period is
a. binomial

b. Normal

c. Poisson

d. None of the above

13. A die is thrown at random. What is the expectation of the number on it:
a. 3.7
b 3.1
c. 3.5
d. 3.8
14. Tina's score on her midterm exam was at the 50th percentile. The grades were normally
distributed. The exam average was 78 and the standard deviation was 6. What was Tina's score on
the exam?
a. 90
b. 50
c. 84
d. 78
15. If the time between customer arrivals at a bank is a random variable X which follows a normal
distribution with mean of 75 seconds and a variance of 9 minutes then approximately 95% of the
times between arrivals are between:
a. 66 seconds and 84 seconds
b. 57 seconds and 93 seconds
c. 69 seconds and 81 seconds

d. 72 seconds and 78 seconds

e. 48 seconds and 102 seconds

16. The following table gives the probability distribution of the number of people in cars travelling
along a certain freeway.
p
Pr(P = p)

>3

0.45

0.35

0.05

0.15

A toll of $5.00 is charged on cars which carry only the driver; otherwise the toll per car is only $1.50.
The expected toll charge per car is equal to:
a. $1.05
b. $1.10
c. $1.65
d. $3.075
17. Probability distribution of discrete random variable is classified as
a.
b.
c.
d.

probability mass function

posterior mass function
interior mass function
continuous mass function

18. Mean of binomial probability distribution is 857.6 and probability is 64% then number of values
of binomial distribution
a. 1040

b. 1340

c. 1240

d. 1140

19. In normal distribution, normal curve becomes more wider and more flatter because of
a.
b.
c.
d.

small value of mean

large value of mean
large value of standard deviation
small value of standard deviation

20. If mean of a random variable X, which follows a Poisson distribution, is 25, then standard
deviation of X is
a.
b.
c.
d.

25
5
625
This cannot be determined