Mngt 7

Quiz 1 ( Prelims)

Name:________________________

Problem Solving:

1. Allan Torres is in charge of the SM Cebu branch of Mac Burgers. Based on experience,
they observed that the purchase of French fries is dependent on the purchase of burgers
and vise versa. The probability of purchasing burgers is .80 while the probability of
purchasing French fries is 0.43. The probability that a customer will purchase French
fries if he had already purchase a burger is 0.70, white is the probability that a customer
will buy both a burger and French fries?

2. Esteban Mabutingtao, production foreman for the Cebu Gold Fruit Company, estimates
that the average sale of mangoes is 4700 and the standard deviation is 500 mangoes.
Sales follow a normal distribution.
a. What is the probability that sales will be greater than 5500 oranges?
b. What is the probability that sales will be less than 4900 mangoes

3. Judith Moran runs a florist shop in Greenhills Shopping Center, specializing in floral
arrangements for weddings and other special events. She advertises weekly in the local
newspaper and is considering increasing her advertising budget. Before doing so, she
decides to evaluate the past effectiveness of these ads. Five weeks are sampled, and
the advertising cost and sales volume for each of these is shown on Table 1. Develop a
regression equation that would help Judith evaluate her advertising. Find the coefficient
of determination for this model, explain your answer.

SALES ( P1,000) ADVERTISING(P100)

11 5

6 3

10 7

6 2

12 8