CH 4 Quiz
#1
Bayes’s theorem is used to update prior probabilities based on the arrival of new relevant
information.
True
#2
A survey of adults who typically work full time from home recorded their current education level. The
results are shown in the table below.
Education Level Frequency
Bachelor’s degree or higher 32
Associate degree 12
High school only 4
Less than high school 2
The probability that a randomly selected adult who works full time from home has a bachelor’s
degree or higher is
0.64.
We use the relative frequency to calculate the empirical probability of event
the nundrero £ outcormersin 4
Pl =
Aa S the nurrbrer
o f outcomesin &
#3
Assume the sample space S = {win, loss}. Select the choice that fulfills the requirements of the
definition of probability.
P({win}) = 0.7, P({loss}) = 0.3
The probability of an event must be at least 0 and no more than 1. The sum of the probabilities of
any collection of exhaustive events must be 1.
#4
Bayes'’s theorem uses the total probability rule to update the prior probability of an event that has not
been affected by any new evidence.
False
#5
Alison has all her money invested in two mutual funds, A and B. She knows that there is a 40%
chance that fund A will rise in price, and a 60% chance that fund B will rise in price given that fund A
rises in price. What is the probability that both fund
A and fund B will rise in price?
0.24
The conditional probability is calculated as £(AM B} = P(Bl.A) * PLA)
#1
Bayes’s theorem is used to update prior probabilities based on the arrival of new relevant
information.
True
#2
A survey of adults who typically work full time from home recorded their current education level. The
results are shown in the table below.
Education Level Frequency
Bachelor’s degree or higher 32
Associate degree 12
High school only 4
Less than high school 2
The probability that a randomly selected adult who works full time from home has a bachelor’s
degree or higher is
0.64.
We use the relative frequency to calculate the empirical probability of event
the nundrero £ outcormersin 4
Pl =
Aa S the nurrbrer
o f outcomesin &
#3
Assume the sample space S = {win, loss}. Select the choice that fulfills the requirements of the
definition of probability.
P({win}) = 0.7, P({loss}) = 0.3
The probability of an event must be at least 0 and no more than 1. The sum of the probabilities of
any collection of exhaustive events must be 1.
#4
Bayes'’s theorem uses the total probability rule to update the prior probability of an event that has not
been affected by any new evidence.
False
#5
Alison has all her money invested in two mutual funds, A and B. She knows that there is a 40%
chance that fund A will rise in price, and a 60% chance that fund B will rise in price given that fund A
rises in price. What is the probability that both fund
A and fund B will rise in price?
0.24
The conditional probability is calculated as £(AM B} = P(Bl.A) * PLA)
