SB Test Bank Chapter 6

Chapter 06
Discrete Probability Distributions

True / False Questions

1. A random variable is a function or rule that assigns a numerical value to each outcome in the
sample space of a stochastic (chance) experiment.

True False

2. A discrete random variable has a countable number of distinct values.

True False

3. The expected value of a discrete random variable E(X) is the sum of all X values weighted by
their respective probabilities.

True False

4. A discrete distribution can be described by its probability density function (PDF) or by its
cumulative distribution function (CDF).

True False

5. A random variable may be discrete or continuous, but not both.

True False

6. To describe the number of blemishes per sheet of white bond paper, we would use a discrete
uniform distribution.

True False

7. The outcomes for the sum of two dice can be described as a discrete uniform distribution.

True False

8. A discrete binomial distribution is skewed right when π > .50.

True False

9. When π = .70 the discrete binomial distribution is negatively skewed.

True False

10. The Poisson distribution describes the number of occurrences within a randomly chosen unit
of time or space.

True False

11. The Poisson distribution can be skewed either left or right, depending on λ.

True False

12. Although the shape of the Poisson distribution is positively skewed, it becomes more nearly
symmetric as its mean becomes larger.

True False

13. As a rule of thumb, the Poisson distribution can be used to approximate a binomial
distribution when n ≥ 20 and π ≤ .05.

True False

14. The hypergeometric distribution is skewed right.

True False

15. The hypergeometric distribution assumes that the probability of a success remains the same
from one trial to the next.

True False

16. The hypergeometric distribution is not applicable if sampling is done with replacement.

True False

17. As a rule of thumb, the binomial distribution can be used to approximate the hypergeometric
distribution whenever the population is at least 20 times as large as the sample.

True False

18. An example of a geometric random variable is the number of pine trees with pine beetle
infestation in a random sample of 15 pine trees in Colorado.

True False

19. Calculating the probability of getting three aces in a hand of five cards dealt from a deck of
52 cards would require the use of a hypergeometric distribution.

True False

20. The Poisson distribution is appropriate to describe the number of babies born in a small
hospital on a given day.

True False

21. The gender of a randomly chosen unborn child is a Bernoulli event.

True False

22. The Poisson distribution has only one parameter.

True False

23. The standard deviation of a Poisson random variable is the square root of its mean.

True False

24. Customer arrivals per unit of time would tend to follow a binomial distribution.

True False

25. The two outcomes (success, failure) in the Bernoulli model are equally likely.

True False

26. The expected value of a random variable is its mean.

True False

Multiple Choice Questions

27. A discrete probability distribution:

A. is a listing of all possible values of the random variable.

B. assigns a probability to each possible value of the random variable.
C. can assume values between -1 and +1.
D. is independent of the parameters of the distribution.

28. The number of male babies in a sample of 10 randomly chosen babies is a:

A. continuous random variable.

B. Poisson random variable.
C. binary random variable.
D. binomial random variable.

29. A discrete random variable:

A. can be treated as continuous when it has a large range of values.

B. cannot be treated as continuous.
C. is best avoided if at all possible.
D. is usually uniformly distributed.

30. Which is not a discrete random variable?

A. The number of defects in a 4 × 8 sheet of plywood

B. The number of female passengers who board a plane
C. The time until failure of a vehicle headlamp
D. The number of correct answers on a statistics exam

31. Which is a not a discrete random variable?

A. The number of births in a hospital on a given day

B. The number of fives obtained in four rolls of a die
C. The hourly earnings of a call center employee in Boston
D. The number of applicants applying for a civil service job

32. Which statement is incorrect?

A. The Poisson distribution is always skewed right.

B. The binomial distribution may be skewed left or right.
C. The discrete uniform distribution is always symmetric.
D. The hypergeometric distribution is symmetric.

33. The random variable X is the number of shots it takes before you make the first free throw in
basketball. Assuming the probability of success (making a free throw) is constant from trial
to trial, what type of distribution does X follow?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

34. Which probability model is most nearly appropriate to describe the number of burned-out
fluorescent tubes in a classroom with 12 fluorescent tubes, assuming a constant probability of
a burned-out tube?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

35. Which distribution is most nearly appropriate to describe the number of fatalities in Texas in
a given year due to poisonous snakebites?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

36. Which model would you use to describe the probability that a call-center operator will make
the first sale on the third call, assuming a constant probability of making a sale?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

37. In a randomly chosen week, which probability model would you use to describe the number
of accidents at the intersection of two streets?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

38. Which model best describes the number of nonworking web URLs ("This page cannot be
displayed") you encounter in a randomly chosen minute while surfing websites for Florida
vacation rental condos?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

39. Which probability model would you use to describe the number of damaged printers in a
random sample of 4 printers taken from a shipment of 28 printers that contains 3 damaged
printers?

A. Poisson
B. Hypergeometric
C. Binomial
D. Uniform

40. Which model best describes the number of incorrect fare quotations by a well-trained airline
ticket agent between 2 p.m. and 3 p.m. on a particular Thursday.

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

41. Which model best describes the number of blemishes per sheet of white bond paper?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

42. To ensure quality, customer calls for airline fare quotations are monitored at random. On a
particular Thursday afternoon, ticket agent Bob gives 40 fare quotations, of which 4 are
incorrect. In a random sample of 8 of these customer calls, which model best describes the
number of incorrect quotations Bob will make?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

43. The number of people injured in rafting expeditions on the Colorado River on a randomly
chosen Thursday in August is best described by which model?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

44. On a particular Thursday in August, 40 Grand Canyon tourists enter a drawing for a free
mule ride. Ten of the entrants are European tourists. Five entrants are selected at random to
get the free mule ride. Which model best describes the number of European tourists in the
random sample?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

45. Which model best describes the number of births in a hospital until the first twins are
delivered?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

46. On a randomly chosen Wednesday, which probability model would you use to describe the
number of convenience store robberies in Los Angeles?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

47. Which probability model would you use to describe the number of customers served at a
certain California Pizza Kitchen until the first customer orders split pea soup?

A. Binomial
B. Geometric
C. Uniform
D. Poisson

48. Which distribution has a mean of 5?

A. Poisson with λ = 25.

B. Binomial with n = 200, π = .05
C. Hypergeometric with N = 100, n = 10, s = 50

49. Of the following, the one that most resembles a Poisson random variable is the number of:

A. heads in 200 flips of a fair coin.

B. annual power failures at your residence.
C. face cards in a bridge hand of 13 cards.
D. defective CDs in a spool containing 15 CDs.

50. A charity raffle prize is $1,000. The charity sells 4,000 raffle tickets. One winner will be
selected at random. At what ticket price would a ticket buyer expect to break even?

A. $0.50
B. $0.25
C. $0.75
D. $1.00

51. A die is rolled. If it rolls to a 1, 2, or 3 you win $2. If it rolls to a 4, 5, or 6 you lose $1. Find
the expected winnings.

A. $0.50
B. $3.00
C. $1.50
D. $1.00

52. A fair die is rolled. If it comes up 1 or 2 you win $2. If it comes up 3, 4, 5, or 6 you lose $1.
Find the expected winnings.

A. $0.00
B. $1.00
C. $0.50
D. $0.25

53. A carnival has a game of chance: a fair coin is tossed. If it lands heads you win $1.00 and if
it lands tails you lose $0.50. How much should a ticket to play this game cost if the carnival
wants to break even?

A. $0.25
B. $0.50
C. $0.75
D. $1.00

54. Ephemeral Services Corporation (ESCO) knows that nine other companies besides ESCO are
bidding for a $900,000 government contract. Each company has an equal chance of being
awarded the contract. If ESCO has already spent $100,000 in developing its bidding
proposal, what is its expected net profit?

A. $100,000
B. $90,000
C. -$10,000
D. $0

55. The discrete random variable X is the number of students that show up for Professor Smith's
office hours on Monday afternoons. The table below shows the probability distribution for X.
What is the expected value E(X) for this distribution?

A. 1.2
B. 1.0
C. 1.5
D. 2.0

What is the probability that at least 1 student comes to office hours on any given Monday?

A. .30
B. .40
C. .50
D. .60

What is the probability that fewer than 2 students come to office hours on any given
Monday?

A. .10
B. .40
C. .70
D. .90

58. The discrete random variable X is the number of passengers waiting at a bus stop. The table
below shows the probability distribution for X. What is the expected value E(X) for this
distribution?

A. 1.1
B. 1.3
C. 1.7
D. 1.9

59. Given the following probability distribution, what is the expected value of the random
variable X?

A. 175
B. 150
C. 200
D. 205

60. Which of the following characterizes a Bernoulli process?

A. A random experiment that has only two outcomes.

B. The probability of "success" varies with each trial.
C. Either outcome has the same chance of occurrence.
D. The "success" must be a desirable outcome.

61. The binomial distribution describes the number of:

A. trials to obtain the first "success" in a Bernoulli process.

B. trials to obtain n "successes" in a Bernoulli process.
C. "successes" or "failures" in a Bernoulli process.
D. "successes" in n Bernoulli trials.

62. Which of the following is not a requirement of a binomial distribution?

A. Constant probability of success

B. Only two possible Bernoulli outcomes
C. Fixed number of trials
D. Equally likely outcomes

63. The binomial distribution is symmetrical when:

A. π = 1 and 1 - π = 0.
B. π = ¼ and 1 - π = ¾.
C. π = ½ and 1 - π = ½.
D. π = 0 and 1 - π = 1.

64. The variance will reach a maximum in a binomial distribution when:

A. π = 1 and 1 - π = 0.
B. π = ¼ and 1 - π = ¾.
C. π = ½ and 1 - π = ½.
D. π = 0 and 1 - π = 1.

65. Which distribution is most strongly right-skewed?

A. Binomial with n = 50, π = .70

C. Binomial with n = 50, π = .40
D. Binomial with n = 50, π = .10

66. A random variable is binomially distributed with n = 16 and π = .40. The expected value and
standard deviation of the variables are:

A. 2.00 and 1.24

B. 4.80 and 4.00
C. 6.40 and 1.96
D. 2.00 and 1.20

67. The expected value (mean) of a binomial variable is 15. The number of trials is 20. The
probability of "success" is:

A. .25
B. .50
C. .75
D. .30

68. If 90 percent of automobiles in Orange County have both headlights working, what is the
probability that in a sample of eight automobiles, at least seven will have both headlights
working?

A. .6174
B. .3826
C. .8131
D. .1869

69. In Quebec, 90 percent of the population subscribes to the Roman Catholic religion. In a
random sample of eight Quebecois, find the probability that the sample contains at least five
Roman Catholics.

A. .0050
B. .0331
C. .9950
D. .9619

70. Hardluck Harry has a batting average of .200 (i.e., a 20 percent chance of a hit each time he's
at bat). Scouts for a rival baseball club secretly observe Harry's performance in 12 random
times at bat. What is the probability that Harry will get more than 2 hits?

A. .2055
B. .2362
C. .7946
D. .4417

71. The probability that a visitor to an animal shelter will adopt a dog is .20. Out of nine visits,
what is the probability that at least one dog will be adopted?

A. .8658
B. .3020
C. .5639
D. .1342

72. Based on experience, 60 percent of the women who request a pregnancy test at a certain
clinic are actually pregnant. In a random sample of 12 women, what is the probability that at
least 10 are pregnant?

A. .0639
B. .1424
C. .0196
D. .0835

73. If 5 percent of automobiles in Oakland County have one burned-out headlight, what is the
probability that, in a sample of 10 automobiles, none will have a burned-out headlight?

A. .5987
B. .3151
C. .0116
D. .1872

74. Jankord Jewelers permits the return of their diamond wedding rings, provided the return
occurs within two weeks. Typically, 10 percent are returned. If eight rings are sold today,
what is the probability that fewer than three will be returned?

A. .9950
B. .9619
C. .0331
D. .1488

75. The probability that an Oxnard University student is carrying a backpack is .70. If 10
students are observed at random, what is the probability that fewer than 7 will be carrying
backpacks?

A. .3504
B. .2001
C. .6177
D. .2668

76. An insurance company is issuing 16 car insurance policies. Suppose the probability for a
claim during a year is 15 percent. If the binomial probability distribution is applicable, then
the probability that there will be at least two claims during the year is equal to:

A. .5615
B. .2775
C. .7161
D. .0388

77. A random variable X is distributed binomially with n = 8 and π = 0.70. The standard
deviation of the variable X is approximately:

A. 0.458
B. 2.828
C. 1.680
D. 1.296

78. Suppose X is binomially distributed with n = 12 and π = .20. The probability that X will be
less than or equal to 3 is:

A. .5584
B. .7946
C. .2362
D. .7638

79. Which Excel function would generate a single random X value for a binomial random
variable with parameters n = 16 and π = .25?

A. =BINOM.DIST(RAND(), 16, .25, 0)

B. =BINOM.DIST(0, 16, .25, RAND())
C. =BINOM.INV(16, .25, RAND())
D. =BINOM.INV(0, 16, .25, RAND())

80. A network has three independent file servers, each with 90 percent reliability. The
probability that the network will be functioning correctly (at least one server is working) at a
given time is:

A. 99.9 percent.
B. 97.2 percent.
C. 95.9 percent.
D. 72.9 percent.

81. Which statement concerning the binomial distribution is correct?

A. Its PDF covers all integer values of X from 0 to n.

B. Its PDF is the same as its CDF when π = .50.
C. Its CDF shows the probability of each value of X.
D. Its CDF is skewed right when π < .50.

82. Historically, 2 percent of the stray dogs in Southfield are unlicensed. On a randomly chosen
day, the Southfield city animal control officer picks up seven stray dogs. What is the
probability that fewer than two will be unlicensed?

A. .8681
B. .9921
C. .3670
D. .0076

83. The domain of X in a Poisson probability distribution is discrete and can include:

A. any real X value.

B. any integer X value.
C. any nonnegative integer X value.
D. any X value except zero.

84. On Saturday morning, calls arrive at TicketMaster at a rate of 108 calls per hour. What is the
probability of fewer than three calls in a randomly chosen minute?

A. .1607
B. .8913
C. .2678
D. .7306

85. On average, a major earthquake (Richter scale 6.0 or above) occurs three times a decade in a
certain California county. Find the probability that at least one major earthquake will occur
within the next decade.

A. .7408
B. .1992
C. .1494
D. .9502

86. On average, an IRS auditor discovers 4.7 fraudulent income tax returns per day. On a
randomly chosen day, what is the probability that she discovers fewer than two?

A. .0518
B. .0427
C. .1005
D. .1523

87. On a Sunday in April, dog bite victims arrive at Carver Memorial Hospital at a historical rate
of 0.6 victim per day. On a given Sunday in April, what is the probability that exactly two
dog bite victims will arrive?

A. .0875
B. .0902
C. .0988
D. .0919

88. If tubing averages 16 defects per 100 meters, what is the probability of finding exactly 2
defects in a randomly chosen 10-meter piece of tubing?

A. .8795
B. .2674
C. .3422
D. .2584

89. Cars are arriving at a toll booth at a rate of four per minute. What is the probability that
exactly eight cars will arrive in the next two minutes?

A. 0.0349
B. 0.1396
C. 0.9666
D. 0.0005

90. Arrival of cars per minute at a toll booth may be characterized by the Poisson distribution if:

A. the arrivals are independent.

B. no more than one arrival can occur in a minute.
C. there is only one lane leading to the booth.
D. the mean arrival rate is at least 30.

91. The coefficient of variation for a Poisson distribution with λ = 5 is:

A. 35.2 percent.
B. 58.9 percent.
C. 44.7 percent.
D. 31.1 percent.


A. 35.2 percent.
B. 58.9 percent.
C. 50.0 percent.
D. 26.4 percent.

93. For which binomial distribution would a Poisson approximation be unacceptable?

A. n = 30, π = 0.02

B. n = 50, π = 0.03
C. n = 200, π = 0.10
D. n = 500, π = 0.01

94. For which binomial distribution would a Poisson approximation be acceptable?

A. n = 60, π = 0.08

B. n = 100, π = 0.15
C. n = 40, π = 0.03
D. n = 20, π = 0.20

95. For which binomial distribution would a Poisson approximation not be acceptable?

A. n = 35, π = 0.07

B. n = 95, π = 0.01
C. n = 80, π = 0.02
D. n = 50, π = 0.03

96. The true proportion of accounts receivable with some kind of error is .02 for Venal
Enterprises. If an auditor randomly samples 200 accounts receivable, what is the
approximate Poisson probability that fewer than two will contain errors?

A. .1038
B. .0916
C. .1465
D. .0015

97. The probability that a rental car will be stolen is 0.0004. If 3500 cars are rented, what is the
approximate Poisson probability that 2 or fewer will be stolen?

A. .3452
B. .2417
C. .5918
D. .8335

98. The probability that a customer will use a stolen credit card to make a purchase at a certain
Target store is 0.003. If 400 purchases are made in a given day, what is the approximate
Poisson probability that 4 or fewer will be with stolen cards?

A. .0053
B. .0076
C. .9923
D. .0555

99. The probability that a ticket holder will miss a flight is .005. If 180 passengers take the flight,
what is the approximate Poisson probability that at least 2 will miss the flight?

A. .9372
B. .0628
C. .1647
D. .2275

100. The probability that a certain daily flight's departure from ORD to LAX is delayed is .02.
Over six months, this flight departs 180 times. What is the approximate Poisson probability
that it will be delayed fewer than 2 times?

A. .4471
B. .3028
C. .1257
D. .1771

101. If X is a discrete uniform random variable ranging from 0 to 12, find P(X ≥ 10).

A. .1126
B. .1666
C. .2308
D. .2500

102. If X is a discrete uniform random variable ranging from one to eight, find P(X < 6).

A. .6250
B. .5000
C. .7500
D. .3750

103. If X is a discrete uniform random variable ranging from one to eight, its mean is:

A. 4.0
B. 4.5
C. 5.0
D. 5.5

104. If X is a discrete uniform random variable ranging from 12 to 24, its mean is:

A. 18.5.
B. 16.0.
C. 18.0.
D. 19.5.

105. At Ersatz University, the graduating class of 480 includes 96 guest students from Latvia. A
sample of 10 students is selected at random to attend a dinner with the Board of Governors.
Use the binomial model to obtain the approximate hypergeometric probability that the
sample contains at least three Latvian students.

A. .3222
B. .1209
C. .8791
D. .6778

106. There are 90 passengers on a commuter flight from SFO to LAX, of whom 27 are traveling
on business. In a random sample of five passengers, use the binomial model to find the
approximate hypergeometric probability that there is at least one business passenger.

A. .3087
B. .1681
C. .3602
D. .8319

107. Use the binomial model to find the approximate hypergeometric probability of at least two
damaged flash drives in a sample of five taken from a shipment of 150 that contains 30
damaged flash drives.

A. 0.9421
B. 0.0579
C. 0.7373
D. 0.2627

108. On a particular day, 112 of 280 passengers on a particular DTW-LAX flight used the e-
ticket check-in kiosk to obtain boarding passes. In a random sample of eight passengers, use
the binomial model to find the approximate hypergeometric probability that four will have
used the e-ticket check-in kiosk to obtain boarding passes.

A. .2322
B. .8263
C. .2926
D. .5613

109. A clinic employs nine physicians. Five of the physicians are female. Four patients arrive at
once. Assuming the doctors are assigned randomly to patients, what is the probability that
all of the assigned physicians are female?

A. .0397
B. .0295
C. .0808
D. .0533

110. There is a .02 probability that a customer's Visa charge will be rejected at a certain Target
store because the transaction exceeds the customer's credit limit. What is the probability that
the first such rejection occurs on the third Visa transaction?

A. .0192
B. .0025
C. .0247
D. .0200

111. Ten percent of the corporate managers at Axolotl Industries majored in humanities. What is
the probability that the first humanities major is the fifth manager you meet?

A. .0656
B. .8561
C. .5904
D. .4095

112. Ten percent of the corporate managers at Axolotl Industries majored in humanities. What is
the expected number of managers to be interviewed until finding the first one with a
humanities major?

A. 15
B. 20
C. 10
D. 17

113. When you send out a resume, the probability of being called for an interview is .20. What is
the probability that the first interview occurs on the fourth resume that you send out?

A. .4096
B. .1024
C. .2410
D. .0016

the expected number of resumes you send out until you get the first interview?

A. 5
B. 7
C. 10
D. 12

the probability that you get your first interview within the first five resumes that you send
out?

A. .6723
B. .1024
C. .2410
D. .0016

store because the transaction exceeds the customer's credit limit. What is the probability that
the first such rejection occurs within the first 20 Visa transactions?

A. .1362
B. .4000
C. .3324
D. .4538

store because the transaction exceeds the customer's credit limit. What is the expected
number of Visa transactions until the first one is rejected?

A. 10
B. 20
C. 50
D. 98

118. The geometric distribution best describes:

A. the number of successes in a sample of n trials.

B. the number of trials until the first success.
C. the number of events in a given unit of time.
D. the process of sampling without replacement.

119. The CDF for the geometric distribution shows:

A. the probability of success in a random experiment consisting of n independent trials.

B. the probability that the first success will occur within a given number of trials.
C. the probability that no success will be obtained in a given Bernoulli trial.
D. the probability of more than one success in the first n trials.

120. If the probability of success is .25, what is the probability of obtaining the first success
within the first three trials?

A. .4218
B. .5781
C. .1406
D. .2228

within the first five trials?

A. .0024
B. .8319
C. .1681
D. .9976

122. A project has three independent stages that must be completed in sequence. The time to
complete each stage is a random variable. The expected times to complete the stages are μ1
= 23, μ2 = 11, μ3 = 17. The expected project completion time is:

A. 51.
B. 23.
C. 40.
D. 32.

123. A project has 3 independent stages that must be completed in sequence. The time to
complete each stage is a random variable. The standard deviations of the completion times
for the stages are σ1 = 5, σ2 = 4, σ3 = 6. The standard deviation of the overall project
completion time is:

A. 8.77
B. 15.0
C. 14.2
D. 9.24

124. A stock portfolio consists of two stocks X and Y. Their daily closing prices are independent
random variables with standard deviations σX = 2.51 and σY = 5.22. What is the standard
deviation of the sum of the closing prices of these two stocks?

A. 33.55
B. 6.48
C. 7.73
D. 5.79

125. A stock portfolio consists of two stocks X and Y. Their daily closing prices are correlated
random variables with variances σX2 = 3.51 and σY2 = 5.22, and covariance σXY = -1.55. What
is the standard deviation of the sum of the closing prices of these two stocks?

A. 5.63
B. 7.18
C. 8.73
D. 2.68

126. The expected value of a random variable X is 140 and the standard deviation is 14. The
standard deviation of the random variable Y = 3X - 10 is:

A. 42
B. 6.48
C. 14
D. 32


A. 2
B. 4
C. -10
D. -6

Chapter 06 Discrete Probability Distributions Answer Key
True / False Questions

1. A random variable is a function or rule that assigns a numerical value to each outcome in
the sample space of a stochastic (chance) experiment.

TRUE
Review definition of random variable.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-01 Define a discrete random variable.
Topic: Discrete Distributions

2. A discrete random variable has a countable number of distinct values.

TRUE
Review definition of random variable.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy

3. The expected value of a discrete random variable E(X) is the sum of all X values weighted
by their respective probabilities.

TRUE
Review definition of expected value.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-02 Solve problems using expected value and variance.

4. A discrete distribution can be described by its probability density function (PDF) or by its
cumulative distribution function (CDF).

TRUE
Review definition of PDF and CDF.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-03 Define probability distribution; PDF; and CDF.

5. A random variable may be discrete or continuous, but not both.

TRUE
Review definition of discrete and continuous.

AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium

6. To describe the number of blemishes per sheet of white bond paper, we would use a
discrete uniform distribution.

FALSE
Not all X values would be equally likely (Poisson distribution would be better).

AACSB: Analytic
Blooms: Understand
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

7. The outcomes for the sum of two dice can be described as a discrete uniform distribution.

FALSE
The sum of two uniforms is a triangular distribution, as shown in the textbook example.

AACSB: Analytic
Blooms: Understand
Learning Objective: 06-04 Know the mean and variance of a uniform discrete model.
Topic: Uniform Distribution

8. A discrete binomial distribution is skewed right when π > .50.

FALSE
Most outcomes would be on the right, so a longer left tail exists.

AACSB: Analytic
Blooms: Apply
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

9. When π = .70 the discrete binomial distribution is negatively skewed.

TRUE
Most outcomes would be on the right, so a longer left tail exists.

AACSB: Analytic
Blooms: Apply

10. The Poisson distribution describes the number of occurrences within a randomly chosen
unit of time or space.

TRUE
Poisson describes events per unit of time.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy

11. The Poisson distribution can be skewed either left or right, depending on λ.

FALSE
Poisson is always right-skewed.

AACSB: Analytic
Blooms: Remember

12. Although the shape of the Poisson distribution is positively skewed, it becomes more
nearly symmetric as its mean becomes larger.

TRUE
Although always right-skewed, the Poisson approaches a normal as the mean increases.

AACSB: Analytic
Blooms: Remember

13. As a rule of thumb, the Poisson distribution can be used to approximate a binomial
distribution when n ≥ 20 and π ≤ .05.

TRUE
The Poisson is a better approximation to binomial when n is large and π is small.

AACSB: Analytic
Blooms: Remember
Learning Objective: 06-07 Use the Poisson approximation to the binomial (optional).

14. The hypergeometric distribution is skewed right.

FALSE
The hypergeometric is skewed right if s/N < .50 (and conversely).

AACSB: Analytic
Blooms: Remember
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution

15. The hypergeometric distribution assumes that the probability of a success remains the
same from one trial to the next.

FALSE
The point of the hypergeometric is that π is not constant.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy

16. The hypergeometric distribution is not applicable if sampling is done with replacement.

TRUE
The hypergeometric is used when there is no replacement in sampling from a finite

population

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy

17. As a rule of thumb, the binomial distribution can be used to approximate the
hypergeometric distribution whenever the population is at least 20 times as large as the
sample.

TRUE
The rule is to use the approximation if n/N < .05.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy

18. An example of a geometric random variable is the number of pine trees with pine beetle
infestation in a random sample of 15 pine trees in Colorado.

FALSE
This is a binomial experiment, assuming π is constant.

AACSB: Analytic
Blooms: Apply
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)

19. Calculating the probability of getting three aces in a hand of five cards dealt from a deck
of 52 cards would require the use of a hypergeometric distribution.

TRUE
This is a hypergeometric experiment (no replacement).

AACSB: Analytic
Blooms: Understand

20. The Poisson distribution is appropriate to describe the number of babies born in a small
hospital on a given day.

TRUE
Events per unit of time with no clear upper limit.

AACSB: Analytic
Blooms: Apply
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.

21. The gender of a randomly chosen unborn child is a Bernoulli event.

TRUE
Two outcomes (0 or 1).

AACSB: Analytic
Blooms: Understand
Topic: Bernoulli Distribution

22. The Poisson distribution has only one parameter.

TRUE
The one parameter is the mean.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy

23. The standard deviation of a Poisson random variable is the square root of its mean.

TRUE
Review Poisson model.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy

24. Customer arrivals per unit of time would tend to follow a binomial distribution.

FALSE
This would be a Poisson (arrivals per unit of time).

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy

25. The two outcomes (success, failure) in the Bernoulli model are equally likely.

FALSE
The probability of success need not be .50.

AACSB: Analytic
Blooms: Remember

26. The expected value of a random variable is its mean.

TRUE
The mean is another name for expected value.

AACSB: Analytic
Blooms: Remember

Multiple Choice Questions

27. A discrete probability distribution:

A. is a listing of all possible values of the random variable.

B. assigns a probability to each possible value of the random variable.
C. can assume values between -1 and +1.
D. is independent of the parameters of the distribution.
A discrete PDF assigns a probability to each X value.

AACSB: Analytic
Blooms: Understand

28. The number of male babies in a sample of 10 randomly chosen babies is a:

A. continuous random variable.

B. Poisson random variable.
C. binary random variable.
D. binomial random variable.
Constant probability of success in n trials.

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy

29. A discrete random variable:

A. can be treated as continuous when it has a large range of values.

B. cannot be treated as continuous.
C. is best avoided if at all possible.
D. is usually uniformly distributed.
Review definitions of discrete distributions.

AACSB: Analytic
Blooms: Understand

30. Which is not a discrete random variable?

A. The number of defects in a 4 × 8 sheet of plywood

B. The number of female passengers who board a plane
C. The time until failure of a vehicle headlamp
D. The number of correct answers on a statistics exam
Time is continuous.

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy

31. Which is a not a discrete random variable?

A. The number of births in a hospital on a given day

B. The number of fives obtained in four rolls of a die
C. The hourly earnings of a call center employee in Boston
D. The number of applicants applying for a civil service job
Someone's earnings would be more like a continuous measurement.

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy

32. Which statement is incorrect?

A. The Poisson distribution is always skewed right.

B. The binomial distribution may be skewed left or right.
C. The discrete uniform distribution is always symmetric.
D. The hypergeometric distribution is symmetric.
Review characteristics of the distributions. A hypergeometric is symmetric only if s/N

= .50.

AACSB: Analytic
Blooms: Understand

33. The random variable X is the number of shots it takes before you make the first free throw
in basketball. Assuming the probability of success (making a free throw) is constant from
trial to trial, what type of distribution does X follow?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric
Geometric model describes the number of trials until the first success.

AACSB: Analytic
Blooms: Apply

34. Which probability model is most nearly appropriate to describe the number of burned-out
fluorescent tubes in a classroom with 12 fluorescent tubes, assuming a constant
probability of a burned-out tube?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric
n = 12 Bernoulli trials with fixed probability of success would be a binomial model.

AACSB: Analytic
Blooms: Apply

35. Which distribution is most nearly appropriate to describe the number of fatalities in Texas
in a given year due to poisonous snakebites?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric
Events per unit of time with no clear upper limit would resemble a Poisson distribution.

AACSB: Analytic
Blooms: Apply

36. Which model would you use to describe the probability that a call-center operator will
make the first sale on the third call, assuming a constant probability of making a sale?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric
Geometric describes the number of trials to first success.

AACSB: Analytic
Blooms: Apply

37. In a randomly chosen week, which probability model would you use to describe the
number of accidents at the intersection of two streets?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

AACSB: Analytic
Blooms: Apply

38. Which model best describes the number of nonworking web URLs ("This page cannot be
displayed") you encounter in a randomly chosen minute while surfing websites for Florida
vacation rental condos?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

AACSB: Analytic
Blooms: Apply

39. Which probability model would you use to describe the number of damaged printers in a
random sample of 4 printers taken from a shipment of 28 printers that contains 3 damaged
printers?

A. Poisson
B. Hypergeometric
C. Binomial
D. Uniform
Sampling (n = 4 printers) without replacement with known number of "successes" (s = 3

damaged printers) in the population (N = 28 printers).

AACSB: Analytic
Blooms: Apply

40. Which model best describes the number of incorrect fare quotations by a well-trained
airline ticket agent between 2 p.m. and 3 p.m. on a particular Thursday.

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

AACSB: Analytic
Blooms: Apply

41. Which model best describes the number of blemishes per sheet of white bond paper?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric
Events per unit of area with no clear upper limit would resemble a Poisson distribution.

AACSB: Analytic
Blooms: Apply

42. To ensure quality, customer calls for airline fare quotations are monitored at random. On a
particular Thursday afternoon, ticket agent Bob gives 40 fare quotations, of which 4 are
incorrect. In a random sample of 8 of these customer calls, which model best describes the
number of incorrect quotations Bob will make?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric
Sampling (n = 8 calls selected) without replacement with known number of "successes" (s

= 4 incorrect quotes) in the population (N = 40 quotes).

AACSB: Analytic
Blooms: Apply

43. The number of people injured in rafting expeditions on the Colorado River on a randomly
chosen Thursday in August is best described by which model?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric
Independent events per unit of time with no clear upper limit would be Poisson.

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy

44. On a particular Thursday in August, 40 Grand Canyon tourists enter a drawing for a free
mule ride. Ten of the entrants are European tourists. Five entrants are selected at random
to get the free mule ride. Which model best describes the number of European tourists in
the random sample?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric
Sampling (n = 5 tourists selected) without replacement with known number of "successes"

(s = 10 Europeans) in the population (N = 40).

AACSB: Analytic
Blooms: Apply

45. Which model best describes the number of births in a hospital until the first twins are
delivered?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric
Geometric distribution describes the number of trials until the first success.

AACSB: Analytic
Blooms: Apply

46. On a randomly chosen Wednesday, which probability model would you use to describe
the number of convenience store robberies in Los Angeles?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

AACSB: Analytic
Blooms: Apply

47. Which probability model would you use to describe the number of customers served at a
certain California Pizza Kitchen until the first customer orders split pea soup?

A. Binomial
B. Geometric
C. Uniform
D. Poisson
Geometric distribution describes the number of trials until the first success.

AACSB: Analytic
Blooms: Apply

48. Which distribution has a mean of 5?

A. Poisson with λ = 25.

C. Hypergeometric with N = 100, n = 10, s = 50
Review model parameters. The hypergeometric mean is ns/N = (10)(50)/100 = 5.

AACSB: Analytic
Blooms: Apply

49. Of the following, the one that most resembles a Poisson random variable is the number
of:

A. heads in 200 flips of a fair coin.

B. annual power failures at your residence.
C. face cards in a bridge hand of 13 cards.
D. defective CDs in a spool containing 15 CDs.
Independent arrivals per unit of time with no clear upper limit would be Poisson.

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy

50. A charity raffle prize is $1,000. The charity sells 4,000 raffle tickets. One winner will be
selected at random. At what ticket price would a ticket buyer expect to break even?

A. $0.50
B. $0.25
C. $0.75
D. $1.00
Expected winning is (1/4000) × $1000 = $0.25.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

51. A die is rolled. If it rolls to a 1, 2, or 3 you win $2. If it rolls to a 4, 5, or 6 you lose $1.
Find the expected winnings.

A. $0.50
B. $3.00
C. $1.50
D. $1.00
E(X) = (3/6) × $2 + (3/6) × (-$1) = $0.50.

AACSB: Analytic
Blooms: Apply

52. A fair die is rolled. If it comes up 1 or 2 you win $2. If it comes up 3, 4, 5, or 6 you lose
$1. Find the expected winnings.

A. $0.00
B. $1.00
C. $0.50
D. $0.25
E(X) = (2/6) × $2 + (4/6) × (-$1) = $0.6667 - $0.6667 = 0.

AACSB: Analytic
Blooms: Apply

53. A carnival has a game of chance: a fair coin is tossed. If it lands heads you win $1.00 and
if it lands tails you lose $0.50. How much should a ticket to play this game cost if the
carnival wants to break even?

A. $0.25
B. $0.50
C. $0.75
D. $1.00
E(X) = (.5) × $1 + (.5) × (-$.50) = $0.50 - $0.25 = $0.25.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

54. Ephemeral Services Corporation (ESCO) knows that nine other companies besides ESCO
are bidding for a $900,000 government contract. Each company has an equal chance of
being awarded the contract. If ESCO has already spent $100,000 in developing its bidding
proposal, what is its expected net profit?

A. $100,000
B. $90,000
C. -$10,000
D. $0
E(X) = (1/9) × $900,000 = $100,000. ESCO only can expect to cover its sunk cost (no
profit).

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

55. The discrete random variable X is the number of students that show up for Professor
Smith's office hours on Monday afternoons. The table below shows the probability
distribution for X. What is the expected value E(X) for this distribution?

A. 1.2
B. 1.0
C. 1.5
D. 2.0
For each X, multiply X time P(X) and sum the values.

AACSB: Analytic
Blooms: Apply

distribution for X. What is the probability that at least 1 student comes to office hours on
any given Monday?

A. .30
B. .40
C. .50
D. .60
P(X ≥ 1) = 1 - P(X = 0) = 1 - .40 = .60.

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy

distribution for X. What is the probability that fewer than 2 students come to office hours
on any given Monday?

A. .10
B. .40
C. .70
D. .90
P(X < 2) = P(X = 0) + P(X = 1) = .40 + .30 = .70.

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy

58. The discrete random variable X is the number of passengers waiting at a bus stop. The
table below shows the probability distribution for X. What is the expected value E(X) for
this distribution?

A. 1.1
B. 1.3
C. 1.7
D. 1.9

AACSB: Analytic
Blooms: Apply

59. Given the following probability distribution, what is the expected value of the random
variable X?

A. 175
B. 150
C. 200
D. 205

AACSB: Analytic
Blooms: Apply

60. Which of the following characterizes a Bernoulli process?

A. A random experiment that has only two outcomes.

B. The probability of "success" varies with each trial.
C. Either outcome has the same chance of occurrence.
D. The "success" must be a desirable outcome.
Review characteristics of the Bernoulli process.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy

61. The binomial distribution describes the number of:

A. trials to obtain the first "success" in a Bernoulli process.

B. trials to obtain n "successes" in a Bernoulli process.
C. "successes" or "failures" in a Bernoulli process.
D. "successes" in n Bernoulli trials.
Review characteristics of the binomial distribution.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy

62. Which of the following is not a requirement of a binomial distribution?

A. Constant probability of success

B. Only two possible Bernoulli outcomes
C. Fixed number of trials
D. Equally likely outcomes

AACSB: Analytic
Blooms: Remember

63. The binomial distribution is symmetrical when:

A. π = 1 and 1 - π = 0.
B. π = ¼ and 1 - π = ¾.
C. π = ½ and 1 - π = ½.
D. π = 0 and 1 - π = 1.

AACSB: Analytic
Blooms: Remember

64. The variance will reach a maximum in a binomial distribution when:

A. π = 1 and 1 - π = 0.
B. π = ¼ and 1 - π = ¾.
C. π = ½ and 1 - π = ½.
D. π = 0 and 1 - π = 1.
Review formula for the binomial distribution standard deviation.

AACSB: Analytic
Blooms: Remember
Difficulty: 3 Hard

65. Which distribution is most strongly right-skewed?

A. Binomial with n = 50, π = .70

C. Binomial with n = 50, π = .40
D. Binomial with n = 50, π = .10

AACSB: Analytic
Blooms: Understand

66. A random variable is binomially distributed with n = 16 and π = .40. The expected value
and standard deviation of the variables are:

A. 2.00 and 1.24

B. 4.80 and 4.00
C. 6.40 and 1.96
D. 2.00 and 1.20

AACSB: Analytic
Blooms: Remember

67. The expected value (mean) of a binomial variable is 15. The number of trials is 20. The
probability of "success" is:

A. .25
B. .50
C. .75
D. .30
Set E(X) = nπ = (20)π = 15 and solve for π.

AACSB: Analytic
Blooms: Understand

68. If 90 percent of automobiles in Orange County have both headlights working, what is the
probability that in a sample of eight automobiles, at least seven will have both headlights
working?

A. .6174
B. .3826
C. .8131
D. .1869
Use Appendix A with n = 8 and π = .90 to find P(X ≥ 7) or else use the Excel function =1-
BINOM.DIST(6,8,.90,1) = .8131.

AACSB: Analytic
Blooms: Apply

69. In Quebec, 90 percent of the population subscribes to the Roman Catholic religion. In a
random sample of eight Quebecois, find the probability that the sample contains at least
five Roman Catholics.

A. .0050
B. .0331
C. .9950
D. .9619
BINOM.DIST(4,8,.90,1) = .99498.

AACSB: Analytic
Blooms: Apply

70. Hardluck Harry has a batting average of .200 (i.e., a 20 percent chance of a hit each time
he's at bat). Scouts for a rival baseball club secretly observe Harry's performance in 12
random times at bat. What is the probability that Harry will get more than 2 hits?

A. .2055
B. .2362
C. .7946
D. .4417
Use Appendix A with n = 12 and π = .20 to find P(X ≥ 3) or else use the Excel function
=1-BINOM.DIST(2,12,.20,1) = .44165.

AACSB: Analytic
Blooms: Apply

71. The probability that a visitor to an animal shelter will adopt a dog is .20. Out of nine
visits, what is the probability that at least one dog will be adopted?

A. .8658
B. .3020
C. .5639
D. .1342
BINOM.DIST(0,9,.20,1) = .865778.

AACSB: Analytic
Blooms: Apply

72. Based on experience, 60 percent of the women who request a pregnancy test at a certain
clinic are actually pregnant. In a random sample of 12 women, what is the probability that
at least 10 are pregnant?

A. .0639
B. .1424
C. .0196
D. .0835
=1-BINOM.DIST(9,12,.60,1) = .08344.

AACSB: Analytic
Blooms: Apply

73. If 5 percent of automobiles in Oakland County have one burned-out headlight, what is the
probability that, in a sample of 10 automobiles, none will have a burned-out headlight?

A. .5987
B. .3151
C. .0116
D. .1872
Use Appendix A with n = 10 and π = .05 find P(X = 0) or else use the Excel function
=BINOM.DIST(0,10,.05,0) = .59874.

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy

74. Jankord Jewelers permits the return of their diamond wedding rings, provided the return
occurs within two weeks. Typically, 10 percent are returned. If eight rings are sold today,
what is the probability that fewer than three will be returned?

A. .9950
B. .9619
C. .0331
D. .1488
Use Appendix A with n = 8 and π = .10 to find P(X < 3) or else use the Excel function
=BINOM.DIST(2,8,.1,1) = .96191.

AACSB: Analytic
Blooms: Apply

75. The probability that an Oxnard University student is carrying a backpack is .70. If 10
students are observed at random, what is the probability that fewer than 7 will be carrying
backpacks?

A. .3504
B. .2001
C. .6177
D. .2668
Use Appendix A with n = 10 and π = .70 to find P(X < 7) or else use the Excel function
=BINOM.DIST(6,10,.7,1) = .35039.

AACSB: Analytic
Blooms: Apply

76. An insurance company is issuing 16 car insurance policies. Suppose the probability for a
claim during a year is 15 percent. If the binomial probability distribution is applicable,
then the probability that there will be at least two claims during the year is equal to:

A. .5615
B. .2775
C. .7161
D. .0388
=1-BINOM.DIST(1,16,.15,1) = .7161.

AACSB: Analytic
Blooms: Apply

77. A random variable X is distributed binomially with n = 8 and π = 0.70. The standard
deviation of the variable X is approximately:

A. 0.458
B. 2.828
C. 1.680
D. 1.296
Use the formula for the binomial standard deviation.

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy

78. Suppose X is binomially distributed with n = 12 and π = .20. The probability that X will be
less than or equal to 3 is:

A. .5584
B. .7946
C. .2362
D. .7638
Use Appendix A with n = 12 and π = .20 to find P(X ≤ 3) or else use the Excel function
=BINOM.DIST(3,12,.2,1) = .79457.

AACSB: Analytic
Blooms: Apply

79. Which Excel function would generate a single random X value for a binomial random
variable with parameters n = 16 and π = .25?

A. =BINOM.DIST(RAND(), 16, .25, 0)

B. =BINOM.DIST(0, 16, .25, RAND())
C. =BINOM.INV(16, .25, RAND())
D. =BINOM.INV(0, 16, .25, RAND())
This is the Excel 2010 function for the inverse of a binomial.

AACSB: Technology
Blooms: Remember
Difficulty: 3 Hard

80. A network has three independent file servers, each with 90 percent reliability. The
probability that the network will be functioning correctly (at least one server is working)
at a given time is:

A. 99.9 percent.
B. 97.2 percent.
C. 95.9 percent.
D. 72.9 percent.
Use Appendix A with n = 3 and π = .90.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

81. Which statement concerning the binomial distribution is correct?

A. Its PDF covers all integer values of X from 0 to n.

B. Its PDF is the same as its CDF when π = .50.
C. Its CDF shows the probability of each value of X.
D. Its CDF is skewed right when π < .50.
Review definitions of the binomial distribution. The binomial domain is X = 0, 1, ..., n.

AACSB: Analytic
Blooms: Remember

82. Historically, 2 percent of the stray dogs in Southfield are unlicensed. On a randomly
chosen day, the Southfield city animal control officer picks up seven stray dogs. What is
the probability that fewer than two will be unlicensed?

A. .8681
B. .9921
C. .3670
D. .0076
Use Appendix A with n = 7 and π = .02.

AACSB: Analytic
Blooms: Apply

83. The domain of X in a Poisson probability distribution is discrete and can include:

A. any real X value.

B. any integer X value.
C. any nonnegative integer X value.
D. any X value except zero.
For a Poisson random variable, X = 0, 1, 2, … (no upper limit).

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy

84. On Saturday morning, calls arrive at TicketMaster at a rate of 108 calls per hour. What is
the probability of fewer than three calls in a randomly chosen minute?

A. .1607
B. .8913
C. .2678
D. .7306
Use Appendix B with λ = 108/60 = 1.8.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

85. On average, a major earthquake (Richter scale 6.0 or above) occurs three times a decade
in a certain California county. Find the probability that at least one major earthquake will
occur within the next decade.

A. .7408
B. .1992
C. .1494
D. .9502
Use Appendix B with λ = 3.0.

AACSB: Analytic
Blooms: Apply

86. On average, an IRS auditor discovers 4.7 fraudulent income tax returns per day. On a
randomly chosen day, what is the probability that she discovers fewer than two?

A. .0518
B. .0427
C. .1005
D. .1523

AACSB: Analytic
Blooms: Apply

87. On a Sunday in April, dog bite victims arrive at Carver Memorial Hospital at a historical
rate of 0.6 victim per day. On a given Sunday in April, what is the probability that exactly
two dog bite victims will arrive?

A. .0875
B. .0902
C. .0988
D. .0919

AACSB: Analytic
Blooms: Apply

88. If tubing averages 16 defects per 100 meters, what is the probability of finding exactly 2
defects in a randomly chosen 10-meter piece of tubing?

A. .8795
B. .2674
C. .3422
D. .2584
Use Appendix B with λ = 16/10 = 1.6.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

89. Cars are arriving at a toll booth at a rate of four per minute. What is the probability that
exactly eight cars will arrive in the next two minutes?

A. 0.0349
B. 0.1396
C. 0.9666
D. 0.0005

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

90. Arrival of cars per minute at a toll booth may be characterized by the Poisson distribution
if:

A. the arrivals are independent.

B. no more than one arrival can occur in a minute.
C. there is only one lane leading to the booth.
D. the mean arrival rate is at least 30.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy


A. 35.2 percent.
B. 58.9 percent.
C. 44.7 percent.
D. 31.1 percent.
Use the coefficient of variation with standard deviation equal to the square root of the
mean.

AACSB: Analytic
Blooms: Apply


A. 35.2 percent.
B. 58.9 percent.
C. 50.0 percent.
D. 26.4 percent.
The Poisson standard deviation is the square root of the mean.

AACSB: Analytic
Blooms: Apply

93. For which binomial distribution would a Poisson approximation be unacceptable?

A. n = 30, π = 0.02

B. n = 50, π = 0.03
C. n = 200, π = 0.10
D. n = 500, π = 0.01
We want n ≥ 20 and π ≤ .05.

AACSB: Analytic
Blooms: Apply

94. For which binomial distribution would a Poisson approximation be acceptable?

A. n = 60, π = 0.08

B. n = 100, π = 0.15
C. n = 40, π = 0.03
D. n = 20, π = 0.20
We want n ≥ 20 and π ≤ .05 for an acceptable Poisson approximation.

AACSB: Analytic
Blooms: Apply

95. For which binomial distribution would a Poisson approximation not be acceptable?

A. n = 35, π = 0.07

B. n = 95, π = 0.01
C. n = 80, π = 0.02
D. n = 50, π = 0.03
We want n ≥ 20 and π ≤ .05 for an acceptable Poisson approximation.

AACSB: Analytic
Blooms: Apply

96. The true proportion of accounts receivable with some kind of error is .02 for Venal
Enterprises. If an auditor randomly samples 200 accounts receivable, what is the
approximate Poisson probability that fewer than two will contain errors?

A. .1038
B. .0916
C. .1465
D. .0015
Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (200)(.02) = 4.0 and use Appendix B to find
P(X ≤ 1), or else use the Excel cumulative distribution function =POISSON.DIST(1,4.0,1)
= .09158.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

97. The probability that a rental car will be stolen is 0.0004. If 3500 cars are rented, what is
the approximate Poisson probability that 2 or fewer will be stolen?

A. .3452
B. .2417
C. .5918
D. .8335
Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (3500)(.0004) = 1.4 and use Appendix B to
find P(X ≤ 2), or else use the Excel cumulative distribution function
=POISSON.DIST(2,1.4,1) = .8335.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

98. The probability that a customer will use a stolen credit card to make a purchase at a
certain Target store is 0.003. If 400 purchases are made in a given day, what is the
approximate Poisson probability that 4 or fewer will be with stolen cards?

A. .0053
B. .0076
C. .9923
D. .0555
Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (400)(.003) = 1.2 and use Appendix B, or
else use the Excel cumulative distribution function =POISSON.DIST(4,.003*400,1)
= .9923.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

99. The probability that a ticket holder will miss a flight is .005. If 180 passengers take the
flight, what is the approximate Poisson probability that at least 2 will miss the flight?

A. .9372
B. .0628
C. .1647
D. .2275
Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (.005)(180) = 0.9 and use Appendix B to find
P(X ≥ 2), or else use the Excel cumulative distribution function = 1-
POISSON.DIST(1,0.9,1) = .2275.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

100. The probability that a certain daily flight's departure from ORD to LAX is delayed is .02.
Over six months, this flight departs 180 times. What is the approximate Poisson
probability that it will be delayed fewer than 2 times?

A. .4471
B. .3028
C. .1257
D. .1771
Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (180)(.02) = 3.6 and use Appendix B to find
P(X ≤ 1) or else use the Excel cumulative distribution function =POISSON.DIST(1,3.6,1)
= .12569.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

101. If X is a discrete uniform random variable ranging from 0 to 12, find P(X ≥ 10).

A. .1126
B. .1666
C. .2308
D. .2500
3 out of 13 outcomes (don't forget to count 0 as an outcome).

AACSB: Analytic
Blooms: Apply

102. If X is a discrete uniform random variable ranging from one to eight, find P(X < 6).

A. .6250
B. .5000
C. .7500
D. .3750
We count five out of eight outcomes that meet this requirement.

AACSB: Analytic
Blooms: Apply

103. If X is a discrete uniform random variable ranging from one to eight, its mean is:

A. 4.0
B. 4.5
C. 5.0
D. 5.5
The mean is halfway between the lower and upper limits 1 and 8.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy

104. If X is a discrete uniform random variable ranging from 12 to 24, its mean is:

A. 18.5.
B. 16.0.
C. 18.0.
D. 19.5.
The mean is halfway between the lower and upper limits 12 and 24.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy

105. At Ersatz University, the graduating class of 480 includes 96 guest students from Latvia.
A sample of 10 students is selected at random to attend a dinner with the Board of
Governors. Use the binomial model to obtain the approximate hypergeometric probability
that the sample contains at least three Latvian students.

A. .3222
B. .1209
C. .8791
D. .6778
Since n/N < .05 we can use Appendix A with n = 10 and π = 96/480 = .20 to find P(X ≥
3).

AACSB: Analytic
Blooms: Apply

106. There are 90 passengers on a commuter flight from SFO to LAX, of whom 27 are
traveling on business. In a random sample of five passengers, use the binomial model to
find the approximate hypergeometric probability that there is at least one business
passenger.

A. .3087
B. .1681
C. .3602
D. .8319
Since n/N < .05 we can use Appendix A with n = 5 and π = 27/90 = .30 to find P(X ≥ 1).

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

107. Use the binomial model to find the approximate hypergeometric probability of at least
two damaged flash drives in a sample of five taken from a shipment of 150 that contains
30 damaged flash drives.

A. 0.9421
B. 0.0579
C. 0.7373
D. 0.2627
Since n/N < .05 we can use Appendix A with n = 5 and π = 30/150 = .20 to find P(X ≥ 2).

AACSB: Analytic
Blooms: Apply

108. On a particular day, 112 of 280 passengers on a particular DTW-LAX flight used the e-
ticket check-in kiosk to obtain boarding passes. In a random sample of eight passengers,
use the binomial model to find the approximate hypergeometric probability that four will
have used the e-ticket check-in kiosk to obtain boarding passes.

A. .2322
B. .8263
C. .2926
D. .5613
Since n/N < .05 we can use Appendix A with n = 8 and π = 112/280 = .40 to find P(X =
4).

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

109. A clinic employs nine physicians. Five of the physicians are female. Four patients arrive
at once. Assuming the doctors are assigned randomly to patients, what is the probability
that all of the assigned physicians are female?

A. .0397
B. .0295
C. .0808
D. .0533
You can't use the binomial approximation because we have sampled more than 5% of the
population (n/N = 4/9 = .444) so use the hypergeometric formula with x = 4, n = 4, s = 5,
N = 9 or use the Excel function =HYPGEOM.DIST(4,4,5,9,0) = .03938.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

store because the transaction exceeds the customer's credit limit. What is the probability
that the first such rejection occurs on the third Visa transaction?

A. .0192
B. .0025
C. .0247
D. .0200
Use the formulas for the geometric PDF (not the CDF) with π = .02 to find P(X = 3)
= .02(1 - .02)3-1 = .02(.98)2 = .02(.9604) = .019208.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

111. Ten percent of the corporate managers at Axolotl Industries majored in humanities. What
is the probability that the first humanities major is the fifth manager you meet?

A. .0656
B. .8561
C. .5904
D. .4095
= .10(1 - .10)5-1 = .10(.90)4 = .10(.6561) = .06561.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

112. Ten percent of the corporate managers at Axolotl Industries majored in humanities. What
is the expected number of managers to be interviewed until finding the first one with a
humanities major?

A. 15
B. 20
C. 10
D. 17
The geometric mean is 1/π = 1/(.10) = 10.

AACSB: Analytic
Blooms: Apply

113. When you send out a resume, the probability of being called for an interview is .20. What
is the probability that the first interview occurs on the fourth resume that you send out?

A. .4096
B. .1024
C. .2410
D. .0016
= .20(1 - .20)4-1 = .20(.80)3 = .20(.512) = .1024.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

is the expected number of resumes you send out until you get the first interview?

A. 5
B. 7
C. 10
D. 12

AACSB: Analytic
Blooms: Apply

is the probability that you get your first interview within the first five resumes that you
send out?

A. .6723
B. .1024
C. .2410
D. .0016
Use the formulas for the geometric CDF (not the PDF) with π = .20 to find P(X ≤ 5) = 1 -
(1-.20)5 = = 1 - (.80)5 = 1 - .32678 = .67232.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

store because the transaction exceeds the customer's credit limit. What is the probability
that the first such rejection occurs within the first 20 Visa transactions?

A. .1362
B. .4000
C. .3324
D. .4538
(1-.02)20 = = 1 - (.98)20 = 1 - .6676 = .3324.

AACSB: Analytic
Blooms: Apply

store because the transaction exceeds the customer's credit limit. What is the expected
number of Visa transactions until the first one is rejected?

A. 10
B. 20
C. 50
D. 98

AACSB: Analytic
Blooms: Apply

118. The geometric distribution best describes:

A. the number of successes in a sample of n trials.

B. the number of trials until the first success.
C. the number of events in a given unit of time.
D. the process of sampling without replacement.
Review the definition of geometric distribution.

AACSB: Analytic
Blooms: Remember

119. The CDF for the geometric distribution shows:

A. the probability of success in a random experiment consisting of n independent trials.

B. the probability that the first success will occur within a given number of trials.
C. the probability that no success will be obtained in a given Bernoulli trial.
D. the probability of more than one success in the first n trials.
Review the definition of geometric distribution.

AACSB: Analytic
Blooms: Remember

within the first three trials?

A. .4218
B. .5781
C. .1406
D. .2228
(1-.25)3 = 1 - (.75)3 = 1 - .421875 = .578125.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

within the first five trials?

A. .0024
B. .8319
C. .1681
D. .9976
(1-.30)5 = 1 - (.70)5 = 1 - .16807 = .83193.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

122. A project has three independent stages that must be completed in sequence. The time to
complete each stage is a random variable. The expected times to complete the stages are
μ1 = 23, μ2 = 11, μ3 = 17. The expected project completion time is:

A. 51.
B. 23.
C. 40.
D. 32.
The means can be summed because the stages are independent.

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-11 Apply rules for transformations of random variables (optional).
Topic: Transformations of Random Variables (Optional)

123. A project has 3 independent stages that must be completed in sequence. The time to
complete each stage is a random variable. The standard deviations of the completion times
for the stages are σ1 = 5, σ2 = 4, σ3 = 6. The standard deviation of the overall project
completion time is:

A. 8.77
B. 15.0
C. 14.2
D. 9.24
The variances can be summed because the stages are independent (Rule 4). You have to
square the standard deviations to get the variances σ12 = 25, σ22 = 16, σ32 = 36, then add
them and take the square root of the sum. Be careful - the standard deviations cannot be
summed.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

124. A stock portfolio consists of two stocks X and Y. Their daily closing prices are
independent random variables with standard deviations σX = 2.51 and σY = 5.22. What is
the standard deviation of the sum of the closing prices of these two stocks?

A. 33.55
B. 6.48
C. 7.73
D. 5.79
The variances can be summed because the stages are independent (Rule 4). You have to
square the standard deviations to get the variances σX2 = 6.3001 and σY2 = 27.2484, then
add them and take the square root of the sum. Be careful - the standard deviations cannot
be summed.

AACSB: Analytic
Blooms: Apply

125. A stock portfolio consists of two stocks X and Y. Their daily closing prices are correlated
random variables with variances σX2 = 3.51 and σY2 = 5.22, and covariance σXY = -1.55.
What is the standard deviation of the sum of the closing prices of these two stocks?

A. 5.63
B. 7.18
C. 8.73
D. 2.68
Use the formula for the variance of correlated (nonindependent) events. We sum the
variances and covariance, and then take the square root: σX+Y = [σX2 + σY2 + σXY ]1/2 = [3.51
+ 5.22 - 1.55]1/2 = [7.18]1/2 = 2.67955.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard


A. 42
B. 6.48
C. 14
D. 32
Use the rule for functions of a random variable (Rule 2) to get σY = 3σX = (3)(14) = 42.
The constant -10 merely shifts the distribution and has no effect on the standard deviation.
The mean of Y is not requested.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard


A. 2
B. 4
C. -10
D. -6
Use the rule for functions of a random variable (Rule 2) to get σY = 2σX = (2)(2) = 4. The
constant -10 merely shifts the distribution and has no effect on the standard deviation. The
mean of Y is not requested.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard

SB Test Bank Chapter 6

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Chapter 06

Discrete Probability Distributions

True / False Questions

Multiple Choice Questions

A. is a listing of all possible values of the random variable.

A. continuous random variable.

A. can be treated as continuous when it has a large range of values.

A. The number of defects in a 4 × 8 sheet of plywood

A. The number of births in a hospital on a given day

A. The Poisson distribution is always skewed right.

A. Poisson with λ = 25.

A. heads in 200 flips of a fair coin.

A. A random experiment that has only two outcomes.

A. trials to obtain the first "success" in a Bernoulli process.

A. Constant probability of success

A. Binomial with n = 50, π = .70

A. 2.00 and 1.24

A. =BINOM.DIST(RAND(), 16, .25, 0)

A. Its PDF covers all integer values of X from 0 to n.

A. any real X value.

A. the arrivals are independent.

A. n = 30, π = 0.02

A. n = 60, π = 0.08

A. n = 35, π = 0.07

A. the number of successes in a sample of n trials.

A. the probability of success in a random experiment consisting of n independent trials.

True / False Questions

Review definition of random variable.

Review definition of random variable.

Review definition of expected value.

Review definition of PDF and CDF.

Review definition of discrete and continuous.

Most outcomes would be on the right, so a longer left tail exists.

Most outcomes would be on the right, so a longer left tail exists.

Poisson describes events per unit of time.

Poisson is always right-skewed.

The Poisson is a better approximation to binomial when n is large and π is small.

The hypergeometric is skewed right if s/N < .50 (and conversely).

The point of the hypergeometric is that π is not constant.

The hypergeometric is used when there is no replacement in sampling from a finite

The rule is to use the approximation if n/N < .05.

This is a binomial experiment, assuming π is constant.

This is a hypergeometric experiment (no replacement).

Events per unit of time with no clear upper limit.

Two outcomes (0 or 1).

The one parameter is the mean.

Review Poisson model.

This would be a Poisson (arrivals per unit of time).

The probability of success need not be .50.

The mean is another name for expected value.

Multiple Choice Questions

27. A discrete probability distribution:

A. is a listing of all possible values of the random variable.

A discrete PDF assigns a probability to each X value.

A. continuous random variable.

Constant probability of success in n trials.

A. can be treated as continuous when it has a large range of values.

Review definitions of discrete distributions.

A. The number of defects in a 4 × 8 sheet of plywood

A. The number of births in a hospital on a given day

Someone's earnings would be more like a continuous measurement.

A. The Poisson distribution is always skewed right.

Review characteristics of the distributions. A hypergeometric is symmetric only if s/N