PART I: Multiple Choice

1. X is a discrete random variable that can have values from 0 to infinity, and occurrences
of the events X counts are independent. The standard deviation of X is equal to the square
root of the mean. The probability distribution of X is a(n) _________________
distribution.

A. binomial

B. hyper geometric

C. normal

D. Poisson

E. exponential

PART II: Work Out 1.

At Mesfin Industrial Engineering (MIE), 91% of the employees participate in the Medical
Plan. MIE also offers an Insurance Plan, and 58% of the employees participate in this plan.
Of the employees in the Medical plan, 56% also are in the Insurance Plan. There are
10,000 employees at MIE. If you select one employee at random,

a) What is the probability that the employee is not in the medical plan?

b) What is the probability that the employee is not in the insurance plan?

c) What is the probability that the employee is in the insurance plan but not in the medical
plan?

d) What is the probability that the employee is in the medical plan but not in the insurance
plan?

e) What is the probability that the employee is in the medical plan if you know that the
person is not in the insurance plan?

2. In the process of standardizing test scores for an aptitude test for employees, the
Management Department determined that the probability of "passing" the test is .75. The
test will be given to 2 new employees tomorrow.

a) What is the probability that both (exactly 2) employees "pass" the exam?

b) What is the probability that at least one of the employees "passes" the exam?