Essentials of Statistics for Business and Economics Chapter 4 Exam Bank Solution Manual Already
Passed
probability - Answers a numerical measure of the likelihood that an event will occur
experiment - Answers a process that generates well-defined outcomes
sample space - Answers the set of all experimental outcomes
sample point - Answers an element of the sample space. a sample point represents an experimental
outcome
tree diagram - Answers a graphical representation that helps in visualizing a multiple-step experiment
basic requirement for assigning probabilities - 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 - Answers a method of assigning probabilities that is appropriate when all the
experimental outcomes are equally likely
relative frequency method - 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 - Answers a method of assigning probabilities on the basis of judgment
event - Answers a collection of sample points
complement of A - Answers the event consisting of all sample points that are not in A
venn diagram - 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 - 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 - 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 - Answers a probability law used to compute the probability of the union of two events
Mutually exclusive events - Answers events that have no sample points in common
conditional probability - Answers the probability of an event given that another event already occured.
Passed
probability - Answers a numerical measure of the likelihood that an event will occur
experiment - Answers a process that generates well-defined outcomes
sample space - Answers the set of all experimental outcomes
sample point - Answers an element of the sample space. a sample point represents an experimental
outcome
tree diagram - Answers a graphical representation that helps in visualizing a multiple-step experiment
basic requirement for assigning probabilities - 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 - Answers a method of assigning probabilities that is appropriate when all the
experimental outcomes are equally likely
relative frequency method - 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 - Answers a method of assigning probabilities on the basis of judgment
event - Answers a collection of sample points
complement of A - Answers the event consisting of all sample points that are not in A
venn diagram - 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 - 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 - 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 - Answers a probability law used to compute the probability of the union of two events
Mutually exclusive events - Answers events that have no sample points in common
conditional probability - Answers the probability of an event given that another event already occured.
