Question 1

SCENARIO 5-11 Subscribers to Investment Advice White Letters perform security transactions at the rate of five trades per month.Assume that one of the subscribers performs transactions at this rate and the probability of a transaction for any two months is the same and the number of transactions in one month is independent of the number of transactions in another month.
-Referring to Scenario 5-11, what is variance of the number of transactions per month for this subscriber?

Accepted Answer

The answer of SCENARIO 5-11 Subscribers to Investment Advice White...

Question 2

SCENARIO 5-8 Two different designs on a new line of winter jackets for the coming winter are available for your manufacturing plants.Your profit (in thousands of dollars)will depend on the taste of the consumers when winter arrives.The probability of the three possible different tastes of the consumers and the corresponding profits are presented in the following table. 
-Referring to Scenario 5-8, what is the covariance of the profits from the two different designs?

Accepted Answer

The answer of SCENARIO 5-8 Two different designs on a...

Question 3

If X has a binomial distribution with n = 4 and p = 0.3, then P(X = 1)= ________ .

Accepted Answer

The answer of If X has a binomial distribution with...

Question 4

SCENARIO 5-8 Two different designs on a new line of winter jackets for the coming winter are available for your manufacturing plants.Your profit (in thousands of dollars)will depend on the taste of the consumers when winter arrives.The probability of the three possible different tastes of the consumers and the corresponding profits are presented in the following table. 
-Referring to Scenario 5-8, what is the variance of your profit when Design A is chosen?

Accepted Answer

The answer of SCENARIO 5-8 Two different designs on a...

Question 5

What type of probability distribution will the consulting firm most likely employ to analyze the insurance claims in the following problem? An insurance company has called a consulting firm to determine if the company has an unusually high number of false insurance claims.It is known that the industry proportion for false claims is 3%.The consulting firm has decided to randomly and independently sample 100 of the company's insurance claims.They believe the number of these 100 that are false will yield the information the company desires.

Accepted Answer

A) binomial distribution. 
B) Poisson distribution. 
C) hypergeometric distribution. 
D) none of the above.

Question 6

SCENARIO 5-12 Phone calls arrive at the rate of 50 per hour at the reservation desk for Queen City Airways.The desk manager has asked you for an analysis of the call rates and probabilities to better understand the operation and determine if more call desk workers are needed.
-Using Scenario 5-12, What is the expected number of calls when calculating the probability of receiving three calls in a 6-minute period?

Accepted Answer

The answer of SCENARIO 5-12 Phone calls arrive at the...

Question 7

SCENARIO 5-9 A major hotel chain keeps a record of the number of mishandled bags per 1,000 customers.In a recent year, the hotel chain had 4.06 mishandled bags per 1,000 customers.Assume that the number of mishandled bags has a Poisson distribution.
-Referring to Scenario 5-9, what is the probability that in the next 1,000 customers, the chain will have at least one mishandled bags?

Accepted Answer

The answer of SCENARIO 5-9 A major hotel chain keeps...

Question 8

SCENARIO 5-7 There are two houses with almost identical characteristics available for investment in two different neighborhoods with drastically different demographic composition.The anticipated gain in value when the houses are sold in 10 years has the following probability distribution: 
-Referring to Scenario 5-7, if you can invest 30% of your money on the house in neighborhood A and the remaining on the house in neighborhood B, what is the portfolio risk of your investment?

Accepted Answer

The answer of SCENARIO 5-7 There are two houses with...

Question 9

SCENARIO 5-10 An accounting firm in a college town usually recruits employees from two of the universities in town.This year, there are fifteen graduates from University A and five from University B and the firm decides to hire six new employees from the two universities.
-Referring to Scenario 5-10, what is the probability that two of the new employees will be from University A?

Accepted Answer

The answer of SCENARIO 5-10 An accounting firm in a...

Question 10

SCENARIO 5-8 Two different designs on a new line of winter jackets for the coming winter are available for your manufacturing plants.Your profit (in thousands of dollars)will depend on the taste of the consumers when winter arrives.The probability of the three possible different tastes of the consumers and the corresponding profits are presented in the following table. 
-Referring to Scenario 5-8, if you decide to choose Design A for 30% of the production lines and Design B for the remaining production lines, what is the risk of your investment?

Accepted Answer

The answer of SCENARIO 5-8 Two different designs on a...

Question 11

SCENARIO 5-8 Two different designs on a new line of winter jackets for the coming winter are available for your manufacturing plants.Your profit (in thousands of dollars)will depend on the taste of the consumers when winter arrives.The probability of the three possible different tastes of the consumers and the corresponding profits are presented in the following table. 
-Referring to Scenario 5-8, if you decide to choose Design A for 10% of the production lines and Design B for the remaining production lines, what is the coefficient of variation of your investment?

Accepted Answer

The answer of SCENARIO 5-8 Two different designs on a...

Question 12

In a game called Taxation and Evasion, a player rolls a pair of dice.If on any turn the sum is 7, 11, or 12, the player gets audited.Otherwise, she avoids taxes.Suppose a player takes 5 turns at rolling the dice.The probability that she gets audited at least once is ________.

Accepted Answer

The answer of In a game called Taxation and Evasion,...

Question 13

An Undergraduate Study Committee of 6 members at a major university is to be formed from a pool of faculty of 18 men and 6 women.If the committee members are chosen randomly, what is the probability that all the members will be men?

Accepted Answer

The answer of An Undergraduate Study Committee of 6 members...

Question 14

Suppose that history shows that 60% of college students prefer Brand C cola.A sample of 5 students is to be selected.The probability that more than 3 prefer brand C is ________.

Accepted Answer

The answer of Suppose that history shows that 60% of...

Question 15

SCENARIO 5-11 Subscribers to Investment Advice White Letters perform security transactions at the rate of five trades per month.Assume that one of the subscribers performs transactions at this rate and the probability of a transaction for any two months is the same and the number of transactions in one month is independent of the number of transactions in another month.
-Referring to Scenario 5-11, what is probability that no security transaction will be conducted in one month?

Accepted Answer

The answer of SCENARIO 5-11 Subscribers to Investment Advice White...

Question 16

What type of probability distribution will most likely be used to analyze warranty repair needs on new cars in the following problem? The service manager for a new automobile dealership reviewed dealership records of the past 20 sales of new cars to determine the number of warranty repairs he will be called on to perform in the next 90 days.Corporate reports indicate that the probability any one of their new cars needs a warranty repair in the first 90 days is 0.05.The manager assumes that calls for warranty repair are independent of one another and is interested in predicting the number of warranty repairs he will be called on to perform in the next 90 days for this batch of 20 new cars sold.

Accepted Answer

A) binomial distribution. 
B) Poisson distribution. 
C) hypergeometric distribution. 
D) none of the above.

Question 17

SCENARIO 5-9 A major hotel chain keeps a record of the number of mishandled bags per 1,000 customers.In a recent year, the hotel chain had 4.06 mishandled bags per 1,000 customers.Assume that the number of mishandled bags has a Poisson distribution.
-Referring to Scenario 5-9, what is the probability that in the next 1,000 customers, the hotel chain will have fewer than eight mishandled bags?

Accepted Answer

The answer of SCENARIO 5-9 A major hotel chain keeps...

Question 18

If  remains constant in a binomial distribution, an increase in n will increase the variance.

Accepted Answer

A) True 
 B)False

Question 19

A lab orders 100 rats a week for each of the 52 weeks in the year for experiments that the lab conducts.Suppose the mean cost of rats used in lab experiments turned out to be $13.00 per week.Interpret this value.

Accepted Answer

A) Most of the weeks resulted in rat costs of $13.00. 
B) The median cost for the distribution of rat costs is $13.00. 
C) The expected or mean cost for all weekly rat purchases is $13.00. 
D) The rat cost that occurs more often than any other is $13.00.

Question 20

SCENARIO 5-10 An accounting firm in a college town usually recruits employees from two of the universities in town.This year, there are fifteen graduates from University A and five from University B and the firm decides to hire six new employees from the two universities.
-Referring to Scenario 5-10, what is the probability that none of the new employees will be from University B?

Accepted Answer

The answer of SCENARIO 5-10 An accounting firm in a...

Exam 5: Discrete Probability Distributions

If X has a binomial distribution with n = 4 and p = 0.3, then P(X = 1)= ________ .

In a game called Taxation and Evasion, a player rolls a pair of dice.If on any turn the sum is 7, 11, or 12, the player gets audited.Otherwise, she avoids taxes.Suppose a player takes 5 turns at rolling the dice.The probability that she gets audited at least once is ________.

An Undergraduate Study Committee of 6 members at a major university is to be formed from a pool of faculty of 18 men and 6 women.If the committee members are chosen randomly, what is the probability that all the members will be men?

Suppose that history shows that 60% of college students prefer Brand C cola.A sample of 5 students is to be selected.The probability that more than 3 prefer brand C is ________.

If  remains constant in a binomial distribution, an increase in n will increase the variance.

A lab orders 100 rats a week for each of the 52 weeks in the year for experiments that the lab conducts.Suppose the mean cost of rats used in lab experiments turned out to be $13.00 per week.Interpret this value.