Exam (elaborations) Management Quiz Chapter 4 Probability Question Bank with Correct Solutions 2021

Exam (elaborations) Management Quiz Chapter 4 Probability Question Bank with Correct Solutions 2021 CHAPTER FOUR Probability 1. State whether the following question provided is qualitative or quantitative data and indicate the measurement scale appropriate -Are you a male or female? a. Qualitative, ratio b. Quantitative, ratio c. Qualitative, nominal d. Quantitative, ordinal 2. State whether the following question provided is qualitative or quantitative data and indicate the measurement scale appropriate - How long have you been in your present job or position a. Qualitative, ratio b. Quantitative, ratio c. Qualitative, nominal d. Quantitative, ordinal • 2. State whether the following question provided is qualitative or quantitative data and indicates the measurement scale appropriate - What is your age? – Qualitative, ratio – Quantitative, ratio – Qualitative, nominal – Quantitative, ordinal The Wall Street Journal subscriber survey (October 13, 2013) asked 46 questions about subscriber characteristics and interest. State whether each of the following questions provided qualitative or quantitative data and indicate the measurement scale appropriate for each. a) What is your age? b) Are you male or female? c) When did you first start reading the WSJ? High school, college, early career, midcareer, late career, or retirement? d) How long have you been in your present job or position? e) What type of vehicle are you considering for your next purchase? Nine response categories include sedan, sports car, SUV, minivan, and so on. Ans a). Age: Quantitative; ratio scale of measurement b). Gender: Qualitative; nominal scale of measurement c). When start reading WSJ? Qualitative; ordinal scale of measurement since the responses can be ordered from earliest (high school) to latest (retirement) d). How long in job? Quantitative; ratio scale of measurement e). Type of vehicle: Qualitative; nominal scale of measurement 12. When outliers are present in the data set, the ________ is the best choice to measure central tendency. A) median B) standard deviation C) mean D) mode E) none of the above 3. What is the median of the following set of numbers? {12,8,13,4,7,6,3,3,15} a) 12 b) 8 c) 7 d) 7.5 4. The hourly wages of a sample of 130 system analysts are given below. mean = 60 range = 20 mode = 73 variance = 324 median = 74 The coefficient of variation equals a. 0.30% b. 30% c. 5.4% d. 54% 5. The variance of a sample of 169 observations equals 576. The standard deviation of the sample equals a. 13 b. 24 c. 576 d. 28,461 6. The median of a sample will always equal the a. mode b. mean c. 50th percentile d. all of the above answers are correct 7. A sample selected in such a manner that each sample of size n has the same probability of being selected is a. a convenience sample b. a judgment sample c. nonprobabilistic sampling d. a simple random sample 8. Which of the following sampling methods is a probabilistic sampling method? a. judgment sampling b. convenience sampling c. cluster sampling d. None of these alternatives is correct. 9. An uncertain future event affecting the consequence, or payoff, associated with a decision is known as a. unconditional probability b. unknown probability c. chance event d. uncertain probability 10. Nodes indicating points where a decision is made are known as a. decision nodes b. chance nodes c. marginal nodes d. conditional nodes 11. In computing an expected value (EV), the weights are a. decision alternative probabilities b. in pounds or some unit of weight c. in dollars or some units of currency d. the state-of-nature probabilities 12. Below you are given a payoff table involving three states of nature and two decision alternatives. Decision Alternative States of Nature S1 S2 S3 A 80 45 -20 B 40 50 15 The probability that S1 will occur is 0.1; the probability that S2 will occur is 0.6. The recommended decision based on the expected value criterion is a. A b. B c. Both alternatives are the same. d. None of these alternatives is correct. 13. The degrees of freedom for a contingency table with 6 rows and 3 columns is a. 18 b. 15 c. 6 d. 10 14. If the coefficient of determination is a positive value, then the coefficient of correlation a. must also be positive b. must be zero c. can be either negative or positive d. must be larger than 1 15. Regression analysis is a statistical procedure for developing a mathematical equation that describes how a. one independent and one or more dependent variables are related b. several independent and several dependent variables are related c. one dependent and one or more independent variables are related d. None of these alternatives is correct. 16. Given below are five observations collected in a regression study on two variables x (independent variable) and y (dependent variable). Develop the least squares estimated regression equation x y 10 7 20 5 30 4 40 2 50 1 a. Y = 8.3-0.15x b. Y= 9+0.15x c. Y= 8.3+0.15x d. 9-0.15x 17. As the sample size increases, the margin of error a. increases b. decreases c. stays the same d. increases or decreases depending on the size of the mean 18. In computing the standard error of the mean, the finite population correction factor is used when a. N/n 0.05 b. N/n 0.05 c. n/N 0.05 d. n/N 30 19. Z is a standard normal random variable. What is the value of Z if the area to the right of Z is 0.9803? a. -2.06 b. 0.4803 c. 0.0997 d. 3.06 20. For a standard normal distribution, the probability of obtaining a z value between -2.4 to -2.0 is a. 0.4000 b. 0.0146 c. 0.0400 d. 0.5000 21. For a standard normal distribution, the probability of obtaining a z value of less than 1.6 is a. 0.1600 b. 0.0160 c. 0.0016 d. 0.9452 22. The number of electrical outages in a city varies from day to day. Assume that the number of electrical outages (x) in the city has the following probability distribution. x f(x) 0 0.80 1 0.15 2 0.04 3 0.01 The mean and the standard deviation for the number of electrical outages (respectively) are a. 2.6 and 5.77 b. 0.26 and 0.577 c. 3 and 0.01 d. 0 and 0.8 23. Assume that you have a binomial experiment with p = 0.4 and a sample size of 50. The variance of this distribution is a. 20 b. 12 c. 3.46 d. 144 24. In a binomial experiment the probability of success is 0.06. What is the probability of two successes in seven trials? a. 0.0036 b. 0.0600 c. 0.0555 d. 0.2800 25. If P(A) = 0.62, P(B) = 0.47, and P(A  B) = 0.88, then P(A U B) = a. 0.2914 b. 1.9700 c. 0.6700 d. 0.2100 1. What type of variable is each of the following? 1. hair colour 2. number of television sets in a private home 3. possible responses to questionnaire items are: yes, no, don't know 4. earthquake intensity 5. final position in a race - 1st, 30th, etc. 1. Ans hair colour: Qualitative, Nominal 2. number of television sets in a private home: Quantitative, Discrete 3. possible responses to questionnaire items are: yes, no, don't know: Qualitative, Nominal 4. earthquake intensity: Quantitative, Continuous 5. final position in a race - 1st, 30th, etc.: Qualitative, Ordinal 101 D 1. Which of the following is not a method of assigning probabilities? M A. classical probability Term B. relative frequency C. subjective probability D. elementary inference B 2. A process that produces outcomes is called _______. E A. an event Term B. an experiment C. a result D. population equivalent A 3. Assigning probabilities by dividing the number of ways that an event can occur by the total number of possible outcomes in an experiment is called _______. E A. classical probability Term B. relative frequency C. subjective probability D. elementary inference A 4. The method of assigning probabilities based on rules and laws is called _______. E A. classical probability Term B. relative frequency C. subjective probability D. elementary inference B 5. Using cumulated historical data to assign probabilities is called _______. E A. classical probability Term B. relative frequency C. subjective probability D. elementary inference C 6. Abel Alonzo, Director of Human Resources, is exploring employee absenteeism at the Plano Power Plant. An analysis of personnel records indicated that 20% of all plant employees are absent excessively. This is an example of assigning probabilities by the ________________ method. 173 M A. subjective probability BApp B. relative frequency C. classical probability D. a priori probability A 7. Belinda Bose is reviewing a newly proposed advertising campaign. Based on her 15 years experience, she believes the campaign has a 75% chance of significantly increasing brand name recognition of the product. This is an example of assigning probabilities by the ________________ method. M A. subjective probability BApp B. relative frequency C. classical probability D. a priori probability C 8. The probability of a “2” on a fair toss of a fair die is 1/6. This is an example of assigning probabilities by the ________________ method. E A. subjective probability App B. relative frequency C. classical probability D. empirical probability D 9. Suzanne purchased a new microcomputer for each of her six staff employees. Upon their arrival, the new computers were randomly assigned to the staff members. One of the new computers was defective. The probability that Bill’s new computer is defective is 1/6. This is an example of assigning probabilities by the ___________ method. E A. subjective probability App B. relative frequency C. empirical probability D. classical probability C 10. The method of assigning probabilities based on the insight or feelings of the person determining is called _______. E A. classical probability Term B. relative frequency C. subjective probability 174 D. elementary inference D 11. Which of the following is NOT a legitimate probability value? E A. 0.67 Term B. 15/16 C. 0.23 D. 4/3 B 12. Which of the following is a legitimate probability value? E A. 1.25 Term B. 15/16 C. -0.45 D. 8/7 175 A 13. An outcome of an experiment is called _______. E A. an event Term B. a priori elements C. a probability D. a complement B 14. An event that cannot be broken down into other events is called _______. E A. an a priori event Term B. an elementary event C. a sample space D. an intersection A 15. The list of all elementary events for an experiment is called _______. E A. the sample space Term B. the exhaustive list C. the population space D. the event union D 16. In a set of 15 aluminum castings, two castings are defective (D), and the remaining thirteen are good (G). A quality control inspector randomly selects three of the fifteen castings without replacement, and classifies each as defective (D) or good (G). Which of the following is NOT an elementary event for this experiment? M A. (D, D, G) App B. (G, D, G) C. (G, G, G) D. (D, D, D) B 17. In a set of 15 aluminum castings, two castings are defective (D), and the remaining thirteen are good (G). A quality control inspector randomly selects three of the fifteen castings without replacement, and classifies each as defective (D) or good (G). The sample space for this experiment contains ____________ elementary events. M A. 3,375 App B. 2,730 176 C. 210 D. 15 D 18. In a set of 10 aluminum castings, two castings are defective (D), and the remaining eight are good (G). A quality control inspector randomly selects three of the ten castings with replacement, and classifies each as defective (D) or good (G). Which of the following is an elementary event for this experiment? M A. (D, D, G, G, G, G, G, G, G, G) App B. (D, D) C. (G, G, G, G, G, G, G, G) D. (D, D, D) A 19. In a set of 10 aluminum castings, two castings are defective (D), and the remaining eight are good (G). A quality control inspector randomly selects three of the ten castings with replacement, and classifies each as defective (D) or good (G). The sample space for this experiment contains __________ elementary events. M A. 1,000 App B. 720 C. 100 D. 10 A 20. In a set of 100 purchasing transactions, two transactions violated (V) company procurement policies, and the remaining ninety-eight complied (C) with company policies. An auditor randomly selects four of the 100 transactions without replacement, and classifies each as violated (V) or complied (C). The sample space for this experiment contains __________ elementary events. M A. 94,109,400 App B. 100,000,000 C. 3,921,225 D. 400 D 21. In a set of 100 purchasing transactions, two transactions violated (V) company procurement policies, and the remaining ninety-eight complied (C) with company policies. An auditor randomly selects four of the 100 transactions without 177 replacement, and classifies each as violated (V) or complied (C). Which of the following is NOT an elementary event for this experiment? M A. (C, C, C, C) App B. (V, C, V, C) C. (C, V, C, C) D. (V, C, V, V) 178 B 22. If an event is in set X but is not in set Y, which of the following