Essentials of Statistics for Business and Economics ch 4 Exam Questions with Answers

Essentials of Statistics for Business and Economics ch 4 Exam Questions with Answers probability - Correct Answers: a numerical measure of the likelihood that an event will occur experiment - Correct Answers: a process that generates well-defined outcomes sample space - Correct Answers: the set of all experimental outcomes sample point - Correct Answers: an element of the sample space. a sample point represents an experimental outcome tree diagram - Correct Answers: a graphical representation that helps in visualizing a multiple-step experiment basic requirement for assigning probabilities - Correct Answers: two requirements that restrict the manner in which probability assignments can be made: (1) for each exerimental outcome the value for its probability must lie between 0 and 1 inclusive, (2) considering all experimental outcomes, the total must be 1 classical method - Correct Answers: a method of assigning probabilities that is appropriate when all the experimental outcomes are equally likely relative frequency method - Correct Answers: a method of assigning probabilities that is appropriate when data are available to estimate the proportion of the time the experimental outcome will occur if the experiment is repeated a large number of times subjective method - Correct Answers: a method of assigning probabilities on the basis of judgment event - Correct Answers: a collection of sample points complement of A - Correct Answers: the event consisting of all sample points that are not in A venn diagram - Correct Answers: a graphical representation for showing symbolically the sample space and operations involving events in which the sample space is represented by a rectangle and events are represented as circles within the sample space union of A and B - Correct Answers: the event containing all sample points belonging to A or B or both. The union is denoted as A U B Intersection of A and B - Correct Answers: the event containg the sample points belonging to both A and B. The intersection is denoted as A 'upside down U' B Addition law - Correct Answers: a probability law used to compute the probability of the union of two events Mutually exclusive events - Correct Answers: events that have no sample points in common conditional probability - Correct Answers: the probability of an event given that another event already occured. joint probability - Correct Answers: the probability of two events both occurring; that is, the probability of the intersection of two events independent events - Correct Answers: two events A and B where P(A | B) = P(A) or P(B | A) = P(B) that is the events have no influence on each other multiplication law - Correct Answers: a probability law used to compute the probability of the intersection of two events.