SEED ACADEMY

PROBABILITY & STATISTICS

Finals Exam
1st Semester, AY 2018-2019

GENERAL INSTRUCTIONS:
1. No Accounting Clearance, No exam.
2. Use black or blue ink only. NO FRICTION PEN!
3. Read and analyze each item carefully.
4. Cheating means an automatic grade of 0.00 for the course.

STATISTICS & PROBABILITY

I. MULTIPLE CHOICE. C. “Normalize" their data.

Choose the letter that corresponds to the correct D. Compare their data to SAT scores.
answer. Use CAPITAL LETTERS only.
8. A z-score tells you
1. Which of the statements below is NOT a characteristic of A. How far above or below the mean a score lies.
the normal curve? B. The original raw score on which it is based.
A. It extends indefinitely in one direction. C. If the distribution it comes from is normal.
B. It has a symmetrical bell-shaped curve D. How far above or below the mean a score lies in
C. It has a particular internal distribution for the area standard deviation units.
under the curve.
D. It is defined by the mean and standard 9. The reason we use the standard deviation in the
deviation. denominator of the z-score formula is because
A. It is a number we already know
2. What is the total area under the normal curve? B. It always equals 1.
A. 1 C. We can then be sure that the resulting distribution is
B. 0.5 normal.
C. –1 D. It takes into account the units of the original metric.
D. –0.5
10. What do we call the statement that determines if the null
3. Which formula would you use to convert measurements hypothesis is rejected?
in the x-scale to z-scores? A. Decision rule
A. z    X B. Test statistic
 C. Alternate hypothesis
B. z  X  D. Null hypothesis

C. z  X 11. What are the critical z-values for a two-tailed
s hypothesis test if  = 0.01?
A. 1.96
D. z  X  
s B. 2.33
4. When should a two-tailed test be conducted? C. 2.58
A. When the alternative hypothesis is right D. 1.65
directional
B. When the alternative hypothesis is left 12. The mean of a normally distributed group of weekly
incomes of a large group of executives is $1,000 and the
directional
standard deviation is $100. What is the z-score for an
C. When the alternative hypothesis is non-
income of $1,100?
directional. A. 1.00
D. When the alternative hypothesis is B. 2.00
directional. C. 1.683
D. 10.90
5. In a negatively skewed distribution
A. the mean is smaller than the median. 13. What is the area under the normal curve between z = 0.0
B. the mean is larger than the median. and z = 1.79?
C. the mean and median are equal. A. 0.4633
D. the median and the mode are equal. B. 0.0367
C. 0.9599
6. Which term refers to a conjecture or statement which D. 0.0401
aims to explain certain phenomena in the real world?
A. Experiment 14. Which of the following is not a characteristic of the
B. Procedure standard deviation?
C. Inference A. It is based on squared deviations from the mean.
D. Hypothesis B. It has the same unit as the mean.
C. It uses all the observations in its calculation.
7. Standardization allows a researcher to D. It is based on two values only.
A. Locate where a score falls in a distribution and
describe how it compares to other scores in the
distribution.
B. Identify whether data entry errors have been made.
 SEED ACADEMY
PROBABILITY & STATISTICS
Finals Exam
1st Semester, AY 2018-2019

GENERAL INSTRUCTIONS:
1. No Accounting Clearance, No exam.
2. Use black or blue ink only. NO FRICTION PEN!
3. Read and analyze each item carefully.
4. Cheating means an automatic grade of 0.00 for the course.

STATISTICS & PROBABILITY

15. A new extended-life light bulb has an average service C. The z-distribution always looks normal.
life of 750 hours, with a standard deviation of 50 hours. D. The z-distribution always keeps the raw score
If the service life of these light bulbs approximates a distribution's shape.
normal distribution, about what percent of the
distribution will be between 600 hours and 900 hours? 22. Jane recently had a baby. She named him Tyler. Jane
A. 95% was told that the weights of babies born in this hospital are
B. 68% normally distributed and the mean is 7 lbs. 8 oz., with a
C. 4% standard deviation of 4 oz. Tyler's weight at birth was in the
D. 99.7% 15th percentile. How much did Tyler weigh when he was
born?
16. Which of the following is not a measure of dispersion? A. 7 lbs., 4 oz.
A. Range B. 7 lbs., 8 oz.
B. Variance C. 7 lbs., 10 oz.
C. Standard deviation D. 7 lbs., 12 oz.
D. Mean
23. Tina's score on her midterm exam was at the 50th
17. The distribution of the annual incomes of a group of percentile. The grades were normally distributed. The
middle management employees approximated a normal exam average was 78 and the standard deviation was 6.
distribution with a mean of $37,200 and a standard What was Tina's score on the exam?
deviation of $800. About 68 percent of the incomes lie A. 90
between what two incomes? B. 50
A. $30,000 and $40,000 C. 84
B. $36,400 and $38,000 D. 78
C. $34,800 and $39,600
D. $35,600 and $38,800 24. Bob has a z-score of 1.74 on the achievement test. Did
he score higher than my score in the 98th perentile?
18. A study of a company's practice regarding the payment What was Bob's score?
of invoices revealed that an invoice was paid an average A. Bob scored higher than I, his score was 3288.
of 20 days after it was received. The standard deviation B. Bob scored higher than I, his score was 1461.
equaled five days. Assuming that the distribution is C. Bob scored lower than I, his score was 261.
normal, what percent of the invoices were paid within 15 D. Bob scored lower than I, his score was 1461.
days of receipt?
A. 15.87% 25. Which of the following is not true of the normal
B. 37.91% distribution?
C. 34.13% A. The curve is bell-shaped
D. 86.74% B. The curve approaches the x-axis gradually on either
side of the mean
19. The mean of a normal distribution is 400 pounds. The C. The distribution is symmetrical about the vertical line
standard deviation is 10 pounds. What is the area drawn from the peak of the curve
between 415 pounds and the mean of 400 pounds? D. The curve is asymmetrical
A. 0.5000
B. 0.1932 II. TRUE OR FALSE
C. 0.4332 Determine whether each statement is true or false.
D. 0.3413 1. All variables that are approximately normally distributed
can be transformed into standard normal variables.
20. Which term refers to the symmetry or asymmetry of a 2. The z vale corresponding to a number below the mean
frequency distribution? is always negative.
A. Normal distribution 3. The total area under the normal distribution is infinite.
B. Skewness 4. The central limit theorem applies to means of sample
C. Kurtosis selected from different populations.
D. Deviation 5. The standard normal distribution is unimodal.

21. Which of the following is not true about the z-score

distribution?
A. The mean of any z-distribution is always 0.
B. The standard deviation of any z-distribution is always
1.
 SEED ACADEMY
PROBABILITY & STATISTICS
Finals Exam
1st Semester, AY 2018-2019

GENERAL INSTRUCTIONS:
1. No Accounting Clearance, No exam.
2. Use black or blue ink only. NO FRICTION PEN!
3. Read and analyze each item carefully.
4. Cheating means an automatic grade of 0.00 for the course.

STATISTICS & PROBABILITY

III. Solve each problem completely.
1. What is nP0?
2. A 5-card hand is dealt from a standard 52-card deck.
a) How many such hands are possible?
b) How many hands contain 3 face cards and an 8?
c) How many hands contain only red cards?
3. A box contains five red, two white, and three green balls.
If a ball is selected at random, find the probability that it is
a) not red
b) black
c) white
4. What is 15C8?
8. A scholarship program requires a test score in the upper
20% range. If µ = 115 and σ = 12, find the lowest acceptable
score that would enable a candidate to receive the
scholarship. Assume that the variable is normally distributed.
9. Find each probability.
a) P (0 < z < 2.13)
b) P (z > 0.37)
c) P (-2.1 < z 0.48)
10. Americans consume an average of 1.64 cups of coffee per
day. Assume the variable is approximately normally
distributed with a standard deviation of 0.24 cup. If 500
individuals are selected, approximately how many will drink
less than 1 cup of coffee per day?

5. In a survey, 30% of the people interviewed said they

bought most of their clothes during the last three months of
the year (October, November, and December). If nine people
were selected at random, find the probability that exactly
three of these people buy most of their clothes during
October, November, and December.

6. Thirty automobiles were tested for fuel efficiency (in

kilometers per liters). The following frequency distribution
was obtained. Find the mean, median and mode.

Class Frequency
boundaries
7.5-12.5 3
12.5-17.5 5
17.5-22.5 15
22.5-27.5 5
27.5-32.5 2

7. The number of faculty and the number of students in a

random selection of small colleges are shown.

Faculty (x) Students (y)

99 1353
110 1290
113 1091
116 1213
138 1384
174 1283
220 2075
Using the values given above, compute for r. Then, describe Prepared by:
the relationship.
Ms. Davy Rose F. Falceso
Instructor, Basic Statistics
n xy   x y
r
n x 2 2

  x  n y 2   y 
2
 Reviewed and Approved by:

Mr. Robert F. Norberte

President