Question 1

Probability is used to develop knowledge of the fundamental mathematical tools for quantitatively assessing risk.

Accepted Answer

A) True 
 B)False

Question 2

Consider the following sample space,S,and several events defined on it. S = {Albert,Betty,Abel,Jack,Patty,Meagan},and the events are: F = {Betty,Patty,Meagan},H = {Abel,Meagan},and P = {Betty,Abel}.F $\cup$ H is ___________.

Accepted Answer

A)  {Meagan} 
B)  {Betty, Abel, Patty, Meagan} 
C)  empty, since F and H are complements 
D)  empty, since F and H are independent 
E)  empty, since F and H are mutually exclusive 
A)  {Meagan} 
B)  {Betty, Abel, Patty, Meagan} 
C)  empty, since F and H are complements 
D)  empty, since F and H are independent 
E)  empty, since F and H are mutually exclusive

Question 3

Meagan Dubean manages a portfolio of 200 common stocks. Her staff classified the portfolio stocks by 'industry sector' and 'investment objective.'   Which of the following statements is true?

Accepted Answer

A)  Growth and Healthcare are complementary events. 
B)  Electronics and Growth are independent. 
C)  Electronics and Growth are mutually exclusive. 
D)  Airlines and Healthcare are collectively exhaustive. 
E)  Electronics and Healthcare are collectively exhaustive. 
A)  Growth and Healthcare are complementary events. 
B)  Electronics and Growth are independent. 
C)  Electronics and Growth are mutually exclusive. 
D)  Airlines and Healthcare are collectively exhaustive. 
E)  Electronics and Healthcare are collectively exhaustive.

Question 4

Bayes' rule is a rule to assign probabilities under the relative frequency method.

Accepted Answer

A) True 
 B)False

Question 5

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 using the ________________ method.

Accepted Answer

A)  subjective probability 
B)  relative frequency 
C)  classical probability 
D)  a priori probability 
E)  a posterior probability 
A)  subjective probability 
B)  relative frequency 
C)  classical probability 
D)  a priori probability 
E)  a posterior probability

Question 6

Let F be the event that a student is enrolled in a finance course,and let S be the event that a student is enrolled in a statistics course. It is known that 40% of all students are enrolled in a finance course and 35% of all students are enrolled in statistics. Included in these numbers are 15% who are enrolled in both statistics and finance. A student is randomly selected,what is the probability that the student is enrolled in either finance or statistics or both?

Accepted Answer

A)  0.15 
B)  0.75 
C)  0.60 
D)  0.55 
E)  0.90 
A)  0.15 
B)  0.75 
C)  0.60 
D)  0.55 
E)  0.90

Question 7

Given P (A)= 0.45,P (B)= 0.30,P (A $\cap$ B)= 0.05. Which of the following is true?

Accepted Answer

A)  A and B are independent 
B)  A and B are mutually exclusive 
C)  A and B are collectively exhaustive 
D)  A and B are not independent 
E)  A and B are complimentary 
A)  A and B are independent 
B)  A and B are mutually exclusive 
C)  A and B are collectively exhaustive 
D)  A and B are not independent 
E)  A and B are complimentary

Question 8

The table below provides summary information about students in a class. The sex of each individual and their age is given.   If a student is randomly selected from this group,what is the probability that the student is male?

Accepted Answer

A)  0.12 
B)  0.48 
C)  0.50 
D)  0.52 
E)  0.68 
A)  0.12 
B)  0.48 
C)  0.50 
D)  0.52 
E)  0.68

Question 9

The marketing department of your company is investigating the appeal of three possible service plans your company is planning to offer.The table below gives information obtained through a sample of 2395 clients.The three service plans are labeled A,B,and C.The clients are classified according to their industry and their service plan preference.   If one of these consumers is randomly selected and prefers plan C,what is the probability that this client is from the construction industry?

Accepted Answer

A)  0.70 
B)  0.68 
C)  0.66 
D)  0.60 
E)  0.58 
A)  0.70 
B)  0.68 
C)  0.66 
D)  0.60 
E)  0.58

Question 10

Which of the following statements is not true regarding probabilities:

Accepted Answer

A) probability is the basis for inferential statistics 
B) probabilities are subjective measures with limited value in business. 
C) probabilities are used to determine the likelihood of certain outcomes 
D) probabilities can inform many business decisions. 
A) probability is the basis for inferential statistics 
B) probabilities are subjective measures with limited value in business. 
C) probabilities are used to determine the likelihood of certain outcomes 
D) probabilities can inform many business decisions.

Question 11

The method of assigning probabilities to uncertain outcomes based on laws and rules is called the relative frequency method.

Accepted Answer

A) True 
 B)False

Question 12

Suppose 5% of the population have a certain disease.A laboratory blood test gives a positive reading for 95% of people who have the disease and 10% positive reading of people who do not have the disease.What is the probability of testing positive?

Accepted Answer

A)  0.0475 
B)  0.1425 
C)  0.95 
D)  0.9 
E)  0.3333 
A)  0.0475 
B)  0.1425 
C)  0.95 
D)  0.9 
E)  0.3333

Question 13

Given two events,A and B,if the probability of A is 0.7,the probability of B is 0.3,and the joint probability of A and B is 0.21,then the two events are independent.

Accepted Answer

A) True 
 B)False

Question 14

The division of the company where you work has 85 employees.Thirty of them are bilingual,and 37% of the bilingual employees have a graduate degree.If an employee of this division is randomly selected,what is the probability that the employee is bilingual and has a graduate degree?

Accepted Answer

A)  0.130 
B)  0.128 
C)  0.126 
D)  0.124 
E)  0.122 
A)  0.130 
B)  0.128 
C)  0.126 
D)  0.124 
E)  0.122

Question 15

Which of the following statements in not true?

Accepted Answer

A) the marginal probability uses the total possible outcomes in the denominator 
B) the union probability is the probability of X or Y occurring. 
C) the joint probability uses the probability of X in the denominator 
D) the conditional probability uses subtotal of the possible outcomes in denominator 
A) the marginal probability uses the total possible outcomes in the denominator 
B) the union probability is the probability of X or Y occurring. 
C) the joint probability uses the probability of X in the denominator 
D) the conditional probability uses subtotal of the possible outcomes in denominator

Question 16

Suppose 5% of the population have a certain disease.A laboratory blood test gives a positive reading for 95% of people who have the disease.What is the probability of testing positive and having the disease?

Accepted Answer

A)  0.0475 
B)  0.95 
C)  0.05 
D)  0.9 
E) 0)02 
A)  0.0475 
B)  0.95 
C)  0.05 
D)  0.9 
E) 0)02

Question 17

Let F be the event that a student is enrolled in afinance course,and let S be the event that a student is enrolled in a statistics course. It is known that 40% of all students are enrolled in a finance course and 35% of all students are enrolled in statistics. Included in these numbers are 15% who are enrolled in both statistics and finance. Find the probability that a student is in finance and is also in statistics.

Accepted Answer

A)  0.15 
B)  0.70 
C)  0.55 
D)  0.12 
E)  0.60 
A)  0.15 
B)  0.70 
C)  0.55 
D)  0.12 
E)  0.60

Question 18

Given two events,A and B,if the probability of either A or B occurring is 0.6,then the probability of neither A nor B occurring is -0.6.

Accepted Answer

A) True 
 B)False

Question 19

If the occurrence of one event precludes the occurrence of another event,then the two events are mutually exclusive.

Accepted Answer

A) True 
 B)False

Question 20

Assigning probabilities to uncertain events based on one's beliefs or intuitions is called classical method.

Accepted Answer

A) True 
 B)False

Probability is used to develop knowledge of the fundamental mathematical tools for quantitatively assessing risk.

Consider the following sample space,S,and several events defined on it. S = {Albert,Betty,Abel,Jack,Patty,Meagan},and the events are: F = {Betty,Patty,Meagan},H = {Abel,Meagan},and P = {Betty,Abel}.F $\cup$ H is ___________.

Meagan Dubean manages a portfolio of 200 common stocks. Her staff classified the portfolio stocks by 'industry sector' and 'investment objective.' Which of the following statements is true?

Bayes' rule is a rule to assign probabilities under the relative frequency method.

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 using the ________________ method.

Given P (A)= 0.45,P (B)= 0.30,P (A $\cap$ B)= 0.05. Which of the following is true?

The table below provides summary information about students in a class. The sex of each individual and their age is given. If a student is randomly selected from this group,what is the probability that the student is male?

Which of the following statements is not true regarding probabilities:

The method of assigning probabilities to uncertain outcomes based on laws and rules is called the relative frequency method.

Suppose 5% of the population have a certain disease.A laboratory blood test gives a positive reading for 95% of people who have the disease and 10% positive reading of people who do not have the disease.What is the probability of testing positive?

Given two events,A and B,if the probability of A is 0.7,the probability of B is 0.3,and the joint probability of A and B is 0.21,then the two events are independent.

The division of the company where you work has 85 employees.Thirty of them are bilingual,and 37% of the bilingual employees have a graduate degree.If an employee of this division is randomly selected,what is the probability that the employee is bilingual and has a graduate degree?

Which of the following statements in not true?

Suppose 5% of the population have a certain disease.A laboratory blood test gives a positive reading for 95% of people who have the disease.What is the probability of testing positive and having the disease?

Given two events,A and B,if the probability of either A or B occurring is 0.6,then the probability of neither A nor B occurring is -0.6.

If the occurrence of one event precludes the occurrence of another event,then the two events are mutually exclusive.

Assigning probabilities to uncertain events based on one's beliefs or intuitions is called classical method.

Introduction to Statistics

Charts and Graphs

Descriptive Statistics

Discrete Distributions

Continuous Distributions

Sampling and Sampling Distributions

Statistical Inference: Estimation for Single Populations

Statistical Inference: Hypothesis Testing for Single Populations

Statistical Inferences About Two Populations

A Nalysis of Variance and Design of Experiments

Simple Regression Analysis and Correlation

Multiple Regression Analysis

Building Multiple Regression Models

Time-Series Forecasting and Index Numbers

Analysis of Categorical Data

Nonparametric Statistics

Statistical Quality Control

Decision Analysis

Filters

Exam 4: Probability

Probability is used to develop knowledge of the fundamental mathematical tools for quantitatively assessing risk.

Consider the following sample space,S,and several events defined on it. S = {Albert,Betty,Abel,Jack,Patty,Meagan},and the events are: F = {Betty,Patty,Meagan},H = {Abel,Meagan},and P = {Betty,Abel}.F ∪\cup∪ H is ___________.

Meagan Dubean manages a portfolio of 200 common stocks. Her staff classified the portfolio stocks by 'industry sector' and 'investment objective.' Which of the following statements is true?

Bayes' rule is a rule to assign probabilities under the relative frequency method.

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 using the ________________ method.

Given P (A)= 0.45,P (B)= 0.30,P (A ∩\cap∩ B)= 0.05. Which of the following is true?

The table below provides summary information about students in a class. The sex of each individual and their age is given. If a student is randomly selected from this group,what is the probability that the student is male?

Which of the following statements is not true regarding probabilities:

The method of assigning probabilities to uncertain outcomes based on laws and rules is called the relative frequency method.

Suppose 5% of the population have a certain disease.A laboratory blood test gives a positive reading for 95% of people who have the disease and 10% positive reading of people who do not have the disease.What is the probability of testing positive?

Given two events,A and B,if the probability of A is 0.7,the probability of B is 0.3,and the joint probability of A and B is 0.21,then the two events are independent.

The division of the company where you work has 85 employees.Thirty of them are bilingual,and 37% of the bilingual employees have a graduate degree.If an employee of this division is randomly selected,what is the probability that the employee is bilingual and has a graduate degree?

Which of the following statements in not true?

Suppose 5% of the population have a certain disease.A laboratory blood test gives a positive reading for 95% of people who have the disease.What is the probability of testing positive and having the disease?

Given two events,A and B,if the probability of either A or B occurring is 0.6,then the probability of neither A nor B occurring is -0.6.

If the occurrence of one event precludes the occurrence of another event,then the two events are mutually exclusive.

Assigning probabilities to uncertain events based on one's beliefs or intuitions is called classical method.

Introduction to Statistics

Charts and Graphs

Descriptive Statistics

Discrete Distributions

Continuous Distributions

Sampling and Sampling Distributions

Statistical Inference: Estimation for Single Populations

Statistical Inference: Hypothesis Testing for Single Populations

Statistical Inferences About Two Populations

A Nalysis of Variance and Design of Experiments

Simple Regression Analysis and Correlation

Multiple Regression Analysis

Building Multiple Regression Models

Time-Series Forecasting and Index Numbers

Analysis of Categorical Data

Nonparametric Statistics

Statistical Quality Control

Decision Analysis

Filters

Consider the following sample space,S,and several events defined on it. S = {Albert,Betty,Abel,Jack,Patty,Meagan},and the events are: F = {Betty,Patty,Meagan},H = {Abel,Meagan},and P = {Betty,Abel}.F $\cup$ H is ___________.

Given P (A)= 0.45,P (B)= 0.30,P (A $\cap$ B)= 0.05. Which of the following is true?