BUSINESS MATH TEST #3 EXAM
QUESTIONS AND ANSWERS
Random variable - ANSWER-Rule that describes the outcome of experiment (ex:
number)
Finite discrete variable - ANSWER-finite number of values (counting)
Infinite discrete random variable - ANSWER-Assumes infinitely any values that may be
arranged in sequence.
Continuous Random Variable - ANSWER-Assumes values that comprise an interval of
real numbers (ex: time, measured in minutes, that light bulb will work- not exactly sure
to give range). Generally measurements-range.
Histogram - ANSWER-Rectangle representing each possible x value labeled as such in
the center. Y axis is probability.
Mean - ANSWER-Average; where the histogram balances
Mode - ANSWER-Most frequently occurring value; tallest rectangle on histogram
Median - ANSWER-Middle value; where the area is cut in half on histogram.
Range - ANSWER-Number of rectangles on histogram (some may have height of 0).
Expected Value - ANSWER-E(x)= x1p1+ x2p2+...xnpn
Odds in favor/against - ANSWER-In favor: P(E)/1-P(E)
Against: 1-P(E)/P(E) or P(Ec)/P(E)
Expres odds as ratio of whole numbers, if possible.
P(E)= a/a+b
Variance - ANSWER-Measure of distance from the mean; equal to square of variance
Standard Deviation - ANSWER-Describes how far away from the mean one can expect
the outcomes to be; same units as the random variable
equal to square root of varience
Binomial Experiment Properties - ANSWER-1. number of trials in experiment is fixed
2. there are exactly two outcomes: success and failure
3. probability of success in each trial is the same (trial one is same as trial 2, same as
trial 3...)
4. trials are independent of each other.
QUESTIONS AND ANSWERS
Random variable - ANSWER-Rule that describes the outcome of experiment (ex:
number)
Finite discrete variable - ANSWER-finite number of values (counting)
Infinite discrete random variable - ANSWER-Assumes infinitely any values that may be
arranged in sequence.
Continuous Random Variable - ANSWER-Assumes values that comprise an interval of
real numbers (ex: time, measured in minutes, that light bulb will work- not exactly sure
to give range). Generally measurements-range.
Histogram - ANSWER-Rectangle representing each possible x value labeled as such in
the center. Y axis is probability.
Mean - ANSWER-Average; where the histogram balances
Mode - ANSWER-Most frequently occurring value; tallest rectangle on histogram
Median - ANSWER-Middle value; where the area is cut in half on histogram.
Range - ANSWER-Number of rectangles on histogram (some may have height of 0).
Expected Value - ANSWER-E(x)= x1p1+ x2p2+...xnpn
Odds in favor/against - ANSWER-In favor: P(E)/1-P(E)
Against: 1-P(E)/P(E) or P(Ec)/P(E)
Expres odds as ratio of whole numbers, if possible.
P(E)= a/a+b
Variance - ANSWER-Measure of distance from the mean; equal to square of variance
Standard Deviation - ANSWER-Describes how far away from the mean one can expect
the outcomes to be; same units as the random variable
equal to square root of varience
Binomial Experiment Properties - ANSWER-1. number of trials in experiment is fixed
2. there are exactly two outcomes: success and failure
3. probability of success in each trial is the same (trial one is same as trial 2, same as
trial 3...)
4. trials are independent of each other.
