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Final Exam Review - Grade: B+
Application of Quantitative Methods in Business (Florida International University)
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Final Exam Review
This document is for review purposes and does not represent every type of problem that may be
on the QMB3600 cumulative final exam.
Probability Concepts
1. This problem is about students who may or may not take advantage of the
opportunities provided in QMB such as homework. Some of the students pass the
course, and some of them do not pass. Research indicates that 40% of the students
do the assigned homework. Of the students who do homework, there is an 80%
chance they will pass the course. The probability of not passing if the student does
not do the homework is 90%. What is the probability of a student not doing
homework or passing?
A. .32
B. .52
C. .94
D. .92
E. .38
2. Suppose that for a certain football game the probability that the home team will be
ahead at half time is 0.60. The probability that the home team will be ahead at half
time and also win the game is 0.45. What is the probability that the home team will
win this game given that it is ahead at half time?
A. .45
B. .75
C. .15
D. .27
E. None of the above.
1
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3. A company markets two products (Product A and Product B) through mail order.
The company will market them in sequence with the first mail order offer for
product A. There is a 30% chance that any customer will purchase product A.
Product B is offered some months later. It is felt, for product B, that there is a 30%
chance of selling product B to a customer if the customer purchased product A and
a 5% chance of selling product B to a customer who did not purchase product A.
What is the probability of not selling product B to a customer?
A. .875
B. .665
C. .125
D. .210
E. None of the above
4. A quality control department finds that it accepted only 5% of all bad items and it
rejected only 1% of good items. A supplier has just delivered a shipment of a
certain item. Past records show that only 90% of the parts of that supplier are
good. If the department accepts an item, what is the probability that the item is
bad? Round your answer to five decimal places.
A. 0.05000
B. 0.00558
C. 0.35714
D. 0.09635
E. None of the above
5. The probability that house sales will increase over the next six months is estimated
at 0.25. It is also estimated that the probability is 0.74 that 30 year fixed-loan
mortgage rates will increase over this period. Economists estimate that the
probability is 0.89 that either housing sales or interest rates will increase.
The probability that both house sales and interest rates will increase is estimated
at:
A. .100
B. .185
C. .705
D. .900
E. .500
2
Downloaded by john gatheca ()
Final Exam Review - Grade: B+
Application of Quantitative Methods in Business (Florida International University)
Studocu is not sponsored or endorsed by any college or university
Downloaded by john gatheca ()
, lOMoARcPSD|28964921
Final Exam Review
This document is for review purposes and does not represent every type of problem that may be
on the QMB3600 cumulative final exam.
Probability Concepts
1. This problem is about students who may or may not take advantage of the
opportunities provided in QMB such as homework. Some of the students pass the
course, and some of them do not pass. Research indicates that 40% of the students
do the assigned homework. Of the students who do homework, there is an 80%
chance they will pass the course. The probability of not passing if the student does
not do the homework is 90%. What is the probability of a student not doing
homework or passing?
A. .32
B. .52
C. .94
D. .92
E. .38
2. Suppose that for a certain football game the probability that the home team will be
ahead at half time is 0.60. The probability that the home team will be ahead at half
time and also win the game is 0.45. What is the probability that the home team will
win this game given that it is ahead at half time?
A. .45
B. .75
C. .15
D. .27
E. None of the above.
1
Downloaded by john gatheca ()
, lOMoARcPSD|28964921
3. A company markets two products (Product A and Product B) through mail order.
The company will market them in sequence with the first mail order offer for
product A. There is a 30% chance that any customer will purchase product A.
Product B is offered some months later. It is felt, for product B, that there is a 30%
chance of selling product B to a customer if the customer purchased product A and
a 5% chance of selling product B to a customer who did not purchase product A.
What is the probability of not selling product B to a customer?
A. .875
B. .665
C. .125
D. .210
E. None of the above
4. A quality control department finds that it accepted only 5% of all bad items and it
rejected only 1% of good items. A supplier has just delivered a shipment of a
certain item. Past records show that only 90% of the parts of that supplier are
good. If the department accepts an item, what is the probability that the item is
bad? Round your answer to five decimal places.
A. 0.05000
B. 0.00558
C. 0.35714
D. 0.09635
E. None of the above
5. The probability that house sales will increase over the next six months is estimated
at 0.25. It is also estimated that the probability is 0.74 that 30 year fixed-loan
mortgage rates will increase over this period. Economists estimate that the
probability is 0.89 that either housing sales or interest rates will increase.
The probability that both house sales and interest rates will increase is estimated
at:
A. .100
B. .185
C. .705
D. .900
E. .500
2
Downloaded by john gatheca ()
