Business Statistics 2nd Edition Donnelly Test Bank 1

Business Statistics 2nd Edition
Donnelly Test Bank

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business-statistics-2nd-edition-by-donnelly-isbn-0321925122-
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Business Statistics (Donnelly)

Chapter 4 Introduction to Probabilities
1) A probability is a numerical value that indicates the chance, or likelihood, of a

specific event occurring.
Answer: TRUE
Diff: 1
Keywords: probability
Objective: 4.1.2
2) An event represents all of the possible outcomes of an experiment.

Answer: FALSE
Diff: 1
Keywords: sample space
Objective: 4.1.2
3) An event with a single outcome in its most basic form that cannot be simplified is known as a
simple probability.
Answer: FALSE
Diff: 1
Keywords: simple event
Objective: 4.1.2
4) The event "the first two customers in the store today will pay with cash" is an example of a
simple event.
Answer: FALSE
Diff: 1
Keywords: event
Objective: 4.1.2
5) The event "the first customer in the store today will be a female" is an example of a simple
event.
Answer: TRUE
Copyright ©2015 Pearson Education, Inc.

Diff: 1
Keywords: simple event
Objective: 4.1.2
6) A sample space is described as mutually exclusive if it includes every possible simple event
that can occur.
Answer: FALSE
Diff: 1
Keywords: collectively exhaustive
Objective: 4.1.2
4-1

4-2 Chapter 4
7) The only forms of payment that a particular grocery store accepts are cash, debit card, and
credit card. The sample space {cash, credit card} is not collectively exhaustive in this example.
Answer: TRUE
Diff: 1
Keywords: collectively exhaustive
Objective: 4.1.2
8) A single die is rolled many times and the side that faces up is recorded. Eventually, we expect
the number of times that we observe a 1, 2, 3, 4, 5, and 6 to be relatively close to one another.
This expectation is due to the law of large numbers.
Answer: TRUE
Diff: 1
Keywords: law of large numbers
Objective: 4.1.2
9) The sum of all the probabilities for the simple events in the sample space must be equal to 1.
Answer: TRUE
Diff: 1
Keywords: properties of probability
Objective: 4.1.2
10) The complement to Event A is defined as all of the outcomes in the sample space that are not
part of Event A.
Answer: TRUE
Diff: 1
Keywords: complement
Objective: 4.1.2
11) A frequency table indicates the number of occurrences of events that are classified
according to two categorical variables.
Answer: FALSE
Diff: 1
Keywords: contingency tables
Objective: 4.1.2
12) Joint probability is another term used for simple probability.

Answer: FALSE
Diff: 1
Keywords: marginal probability
Objective: 4.1.2

Introduction to Probabilities 4-3
13) The probability of the union of two events occurring can never be more than the probability
of the intersection of two events occurring.
Answer: FALSE
Diff: 2
Keywords: intersection, union
Objective: 4.2.1
14) The probability that Event A and Event B will occur refers to the union of Event A and Event
B.
Answer: FALSE
Diff: 1
Keywords: intersection
Objective: 4.2.1
15) The probability that Event A or Event B will occur refers to the union of Event A and Event
B.
Answer: TRUE
Diff: 1
Keywords: union
Objective: 4.2.1
16) The addition rule for probabilities is used to calculate the probability of the union of events.
Answer: TRUE
Diff: 1
Keywords: addition rule, union
Objective: 4.2.2
17) Consider the following events:

Event A = The survey respondent is less than 40 years old.
Event B = The survey respondent is 40 years or older.
Events A and B are mutually exclusive and collectively exhaustive.

Answer: TRUE
Diff: 2
Keywords: mutually exclusive, collectively exhaustive
Objective: 4.2.1
18) Consider the following events:

Event A = The survey respondent is a registered Republican.
Event B = The survey respondent lives in Ohio.
Events A and B are mutually exclusive.

Answer: FALSE
Diff: 2
Keywords: mutually exclusive
Objective: 4.2.1

4-4 Chapter 4
19) A conditional probability is also known as a posterior probability, which is a revision of the
prior probability using additional information.
Answer: TRUE
Diff: 1
Keywords: conditional probability, posterior probability
Objective: 4.2.2
20) Two events are considered independent of one another if the occurrence of one event has no
impact on the occurrence of the other event occurring.
Answer: TRUE
Diff: 1
Keywords: independent events
Objective: 4.2.2
21) If the occurrence of one event affects the occurrence of another event, the events are
considered mutually exclusive.
Answer: FALSE
Diff: 1
Keywords: dependent events
Objective: 4.2.2
22) Events A and B are considered to be dependent events if the probability of Event A given the
occurrence of Event B is equal to the probability of Event A occurring.
Answer: FALSE
Diff: 1
Keywords: independent events
Objective: 4.2.2
23) The addition rule is used to determine the probability of the intersection (joint probability) of
two events occurring, or P(A and B).
Answer: FALSE
Diff: 1
Keywords: multiplication rule
Objective: 4.2.2
24) When two events are independent, the probability of them both occurring is simply the
product of their individual probabilities of occurring.
Answer: TRUE
Diff: 1
Objective: 4.2.2

25) Mathematically, it is impossible for P(A and B) > P(A).

Answer: TRUE
Diff: 2
Objective: 4.2.2
26) Decision tables are used to display marginal and joint probabilities from a contingency table.
Answer: FALSE
Diff: 1
Keywords: decision trees
Objective: 4.2.3
27) Two events cannot be both independent and mutually exclusive.

Answer: TRUE
Diff: 2
Keywords: mutually exclusive, independent events
Objective: 4.2.3
28) You can conclude that, because events are not independent, they will be mutually exclusive.
Answer: FALSE
Diff: 2
Keywords: mutually exclusive, independent events
Objective: 4.2.3
29) When the order of objects is important, use permutations.

Answer: TRUE
Diff: 1
Keywords: permutations
Objective: 4.3.2
30) The process of measuring or observing an activity for the purpose of collecting data is known
as a(n) .
A) experiment
B) sample space
C) simple event
D) simple probability
Answer: A
Diff: 1
Keywords: experiments
Objective: 4.2.1

4-6 Chapter 4
31) probability is used when we know the number of possible outcomes of the event
of interest and the total number of possible outcomes in the sample space.
A) Empirical
B) Simple
C) Subjective
D) Classical
Answer: D
Diff: 1
Keywords: classical probability
Objective: 4.1.1
32) probability represents the likelihood of a single event occurring by itself.

A) Classical
B) Simple
C) Empirical
D) Subjective
Answer: B
Diff: 1
Keywords: simple probability
Objective: 4.2.1
33) Calculating the probability of drawing three aces with a random sample of five cards from a
standard 52-card deck is using probability.
A) classical
B) simple
C) empirical
D) subjective
Answer: A
Diff: 1
Objective: 4.1.1
34) Two six-sided die are rolled. Calculating the probability of the sum of the two die being a 10
is an example of using probability.
A) subjective
B) empirical
C) classical
D) simple
Answer: C
Diff: 1
Objective: 4.1.1

35) Two six-sided die are rolled. The probability of the sum of the two die being a 10 is
.
A) 0.056
B) 0.083
C) 0.111
D) 0.139
Answer: B
Diff: 1
Objective: 4.1.1
36) probability requires that you count the frequency that an event occurs
through an experiment and calculate the probability from the experiment's relative
frequency distribution.
A) Classical
B) Simple
C) Empirical
D) Subjective
Answer: C
Diff: 1
Keywords: empirical probability
Objective: 4.1.1
37) A survey of adults who typically work full-time from home recorded their current education
levels. The results are shown in the table below.
Education Level Frequency

Bachelor's degree or higher 37
Some college 13
High school diploma only 7
Less than high school diploma 3
Calculating the probability that a randomly selected adult who works from home and
has a bachelor's degree or higher is using probability.
A) empirical
B) simple
C) subjective
D) classical
Answer: A
Diff: 1
Objective: 4.1.1

4-8 Chapter 4
38) A survey of adults who typically work full-time from home recorded their current education
levels. The results are shown in the table below.
Education Level Frequency

Bachelor's degree or higher 37
Some college 13
High school diploma only 7
Less than high school diploma 3
The probability that a randomly selected adult who works from home has less than a
high school diploma is .
A) 0.02
B) 0.05
C) 0.17
D) 0.20
Answer: B
Diff: 1
Objective: 4.1.1
39) A survey asked randomly selected adults 18-29 years old to indicate their working status.
The results are shown in the following table.
Working Status Frequency

Working full-time 103
Working part-time 60
Student, not working 31
Unemployed 56
Calculating the probability that a randomly selected adult 18-29 years old is
unemployed is using probability.
A) subjective
B) empirical
C) simple
D) classical
Answer: B
Diff: 1
Objective: 4.1.1

40) A survey asked randomly selected adults 18-29 years old to indicate their working status.
The results are shown in the following table.
Working Status Frequency

Working full-time 103
Working part-time 60
Student, not working 31
Unemployed 56
The probability that a randomly selected adult 18-29 years old is working part-time is .
A) 0.09
B) 0.24
C) 0.30
D) 0.60
Answer: B
Diff: 1
Objective: 4.1.1
41) The following table shows the frequency distribution of the credit scores for a random
sample of homeowners who recently refinanced their mortgage at Delaware Bank.
Credit Score Frequency

700 to under 720 7
720 to under 740 14
740 to under 760 25
760 to under 780 16
780 to under 800 8
Calculating the probability that a randomly homeowner has a credit score of 760 to
under 780 is using probability.
A) classical
B) simple
C) empirical
D) subjective
Answer: C
Diff: 1
Objective: 4.1.1

4-10 Chapter 4
42) The following table shows the frequency distribution of the credit scores for a random
sample of homeowners who recently refinanced their mortgage at Delaware Bank.
Credit Score Frequency

700 to under 720 7
720 to under 740 14
740 to under 760 25
760 to under 780 16
780 to under 800 8
The probability that a randomly homeowner has a credit score of 720 to under 740 is .
A) 0.114
B) 0.200
C) 0.520
D) 0.566
Answer: B
Diff: 1
Objective: 4.1.1
43) The law of large numbers states that when an experiment is conducted a large
number of times, the probabilities of the process will converge to the
probabilities.
A) empirical, classical
B) classical, subjective
C) subjective, classical
D) empirical, subjective
Answer: A
Diff: 2
Keywords: law of large numbers, empirical probabilities, classical probabilities
Objective: 4.1.1
44) probability is used when we rely on experience and intuition to estimate the
likelihood of an event.
A) Classical
B) Simple
C) Empirical
D) Subjective
Answer: D
Diff: 1
Keywords: subjective probability
Objective: 4.1.1

45) After Bill attends the first statistics class of the semester and reads the syllabus, he decides
that the most likely grade he will receive for the course is a "B". This is an example of using
probability.
A) classical
B) simple
C) empirical
D) subjective
Answer: D
Diff: 1
Objective: 4.1.1
46) At the beginning of a Major League Baseball season, a panel of sports writers decided that
the Los Angeles Dodgers were the most likely team to win the World Series that year. This is an
example of using probability.
A) empirical
B) simple
C) subjective
D) classical
Answer: C
Diff: 1
Objective: 4.1.1
47) Suppose the Department of Labor reported that there was a 50% probability that the
unemployment rate would drop below 8% by the end of the calendar year. This is an example of
using probability.
A) subjective
B) simple
C) empirical
D) classical
Answer: A
Diff: 1
Objective: 4.1.1
48) Which one of the following statements about probability is not true?
A) The probability of any event must range from 0 to 1.
B) If P(A) = 1, then with certainty, Event A must occur.
C) If Events A and B are mutually exclusive, then Event A or Event B must occur.
D) If P(A) = 0, then with certainty, Event A will not occur.
Answer: C
Diff: 1
Objective: 4.1.1

4-12 Chapter 4
49) Which one of the following is not a valid number for a probability?
A) 0.63
B) 1.50
C) 17%
D) 0
Answer: B
Diff: 1
Objective: 4.1.1
50) The of Events A and B represents the number of instances in which both Events A
and B occur at the same time.
A) union
B) addition
C) complement
D) intersection
Answer: D
Diff: 1
Objective: 4.2.1
51) The probability of the intersection of two events is known as a

probability.
A) marginal
B) joint
C) simple
D) prior
Answer: B
Diff: 1
Keywords: joint probability
Objective: 4.2.1
52) The of Events A and B represent the number of instances in which either Event A
or Event B or both occur together.
A) union
B) addition
C) complement
D) intersection
Answer: A
Diff: 1
Keywords: union
Objective: 4.2.1

53) Dempsey's Garage repairs domestic and import cars. The following table shows the number
of cars that have been serviced by age and type during the last month.
Age Domestic Import

0 to under 5 years old 8 6
The probability that a randomly selected car from this group was a domestic is .
A) 0.175
B) 0.425
C) 0.475
D) 0.525
Answer: D
Diff: 1
Objective: 4.2.1
Age Domestic Import

The probability that a randomly selected car from this group was less than 10 years old is
.
A) 0.55
B) 0.60
C) 0.76
D) 0.83
Answer: B
Diff: 1
Keywords: addition rule
Objective: 4.2.2

4-14 Chapter 4
Age Domestic Import

The probability that a randomly selected car from this group was an import and from 5 to under
10 years old is .
A) 0.08
B) 0.15
C) 0.32
D) 0.50
Answer: B
Diff: 1
Objective: 4.2.1
Age Domestic Import

The probability that a randomly selected car from this group was a domestic car or from 0 to
under 5 years old is .
A) 0.10
B) 0.19
C) 0.60
D) 0.80
Answer: C
Diff: 1
Keywords: union
Objective: 4.2.1

57) The following contingency table shows the number of two-bedroom apartments grouped by
monthly rent and location.
Monthly Rent York Lancaster Dover

$600 to under $700 6 14 7
$700 to under $800 23 17 20
$800 to under $900 10 16 12
The probability that a randomly selected apartment from this group has a monthly rental from
$700 to under $800 is .
A) 0.216
B) 0.304
C) 0.480
D) 0.552
Answer: C
Diff: 1
Objective: 4.2.1

$600 to under $700 6 14 7
$700 to under $800 23 17 20
$800 to under $900 10 16 12
The probability that a randomly selected apartment from this group was located in York or
Lancaster is .
A) 0.350
B) 0.435
C) 0.688
D) 0.712
Answer: C
Diff: 1
Objective: 4.2.2

4-16 Chapter 4

$600 to under $700 6 14 7
$700 to under $800 23 17 20
$800 to under $900 10 16 12
$600 to under $700 and is located in Dover is .
A) 0.056
B) 0.105
C) 0.147
D) 0.202
Answer: A
Diff: 1
Objective: 4.2.1

$600 to under $700 6 14 7
$700 to under $800 23 17 20
$800 to under $900 10 16 12
$800 to under $900 or is located in York is .
A) 0.536
B) 0.630
C) 0.729
D) 0.858
Answer: A
Diff: 2
Keywords: union
Objective: 4.2.1

61) Two events are considered to be if they cannot occur at the same time during the
experiment.
A) mutually exclusive
B) collectively exhaustive
C) independent
D) dependent
Answer: A
Diff: 1
Keywords: mutually exclusive
Objective: 4.2.2
62) The following contingency table shows the number of customers who bought various brands
of digital cameras at Walmart and Best Buy.
Camera Brand Best Buy Walmart

Canon 21 32
Nikon 8 37
Sony 16 30
FujiFilm 5 12
Other 49 40
The probability that a randomly selected customer from this sample bought a Canon camera or a
Nikon camera is .
A) 0.240
B) 0.333
C) 0.392
D) 0.500
Answer: C
Diff: 1
Objective: 4.2.2

4-18 Chapter 4

Canon 21 32
Nikon 8 37
Sony 16 30
FujiFilm 5 12
Other 49 40
The probability that a randomly selected customer from this sample bought a Canon camera or
purchased a camera at Walmart is .
A) 0.465
B) 0.539
C) 0.600
D) 0.688
Answer: D
Diff: 2
Keywords: union
Objective: 4.2.2

Canon 21 32
Nikon 8 37
Sony 16 30
FujiFilm 5 12
Other 49 40
The probability that a randomly selected customer from this sample bought a Sony camera and
purchased the camera at Best Buy is .
A) 0.064
B) 0.114
C) 0.168
D) 0.270
Answer: A
Diff: 2
Objective: 4.2.1

65) A random sample of computer users were asked which browser they primarily relied on for
surfing the Internet and whether this browser was installed on a desktop or laptop computer. The
following contingency table shows these results.
Browser Desktop Laptop

Internet Explorer 18 56
Firefox 7 37
Chrome 24 77
Safari 3 18
Other 3 7
The probability that a randomly selected person from this sample used the Internet Explorer or
the Chrome browser is .
A) 0.585
B) 0.651
C) 0.700
D) 0.814
Answer: C
Diff: 1
Objective: 4.2.2

Firefox 7 37
Chrome 24 77
Safari 3 18
Other 3 7
The probability that a randomly selected person from this sample used the Internet Explorer and
the Firefox browser is .
A) 0.00
B) 0.32
C) 0.45
D) 0.57
Answer: A
Diff: 1
Objective: 4.2.2

4-20 Chapter 4

Firefox 7 37
Chrome 24 77
Safari 3 18
Other 3 7
The probability that a randomly selected person from this sample used the Safari browser or used
a laptop computer is .
A) 0.509
B) 0.622
C) 0.780
D) 0.792
Answer: D
Diff: 2
Keywords: union
Objective: 4.2.2

Firefox 7 37
Chrome 24 77
Safari 3 18
Other 3 7
The probability that a randomly selected person from this sample used the Chrome browser and
used a laptop computer is .
A) 0.104
B) 0.237
C) 0.308
D) 0.440
Answer: C
Diff: 1
Objective: 4.2.1

69) probability is the probability of Event A occurring knowing that Event B has
already occurred.
A) Joint
B) Conditional
C) Prior
D) Marginal
Answer: B
Diff: 1
Keywords: conditional probability
Objective: 4.2.3
70) probability is the probability of Event A occurring without any additional

information that could influence the event.
A) Posterior
B) Conditional
C) Subjective
D) Prior
Answer: D
Diff: 1
Keywords: prior probability
Objective: 4.2.3
Age Domestic Import

The probability that a randomly selected car from this group was an import given that the car
was from 10 to under 15 years old is .
A) 0.373
B) 0.465
C) 0.625
D) 0.767
Answer: C
Diff: 2
Objective: 4.2.3

4-22 Chapter 4
Age Domestic Import

Given that a randomly selected car from this sample was an import, the probability that the car
was from 5 to under 10 years old is .
A) 0.158
B) 0.316
C) 0.487
D) 0.600
Answer: B
Diff: 2
Objective: 4.2.3

$600 to under $700 6 14 7
$700 to under $800 23 17 20
$800 to under $900 10 16 12
$700 to under $800 given that it was located in Lancaster is .
A) 0.059
B) 0.138
C) 0.362
D) 0.480
Answer: C
Diff: 2
Objective: 4.2.3


$600 to under $700 6 14 7
$700 to under $800 23 17 20
$800 to under $900 10 16 12
Given that a randomly selected apartment from this sample has a monthly rental of $600 to under
$700, the probability that the apartment was located in York is .
A) 0.120
B) 0.222
C) 0.480
D) 0.651
Answer: B
Diff: 2
Objective: 4.2.3

Canon 21 32
Nikon 8 37
Sony 16 30
FujiFilm 5 12
Other 49 40
Given that the camera was purchased at Best Buy, the probability that is was a Canon is
.
A) 0.108
B) 0.152
C) 0.170
D) 0.212
Answer: D
Diff: 2
Objective: 4.2.3

4-24 Chapter 4

Canon 21 32
Nikon 8 37
Sony 16 30
FujiFilm 5 12
Other 49 40
Given that the camera was FujiFilm, the probability that is was purchased at Walmart is
.
A) 0.256
B) 0.403
C) 0.706
D) 0.829
Answer: C
Diff: 2
Objective: 4.2.3

Firefox 7 37
Chrome 24 77
Safari 3 18
Other 3 7
Given that the randomly selected computer used the Chrome browser, the probability that the
computer was a laptop is .
A) 0.433
B) 0.557
C) 0.640
D) 0.762
Answer: D
Diff: 2
Objective: 4.2.3


Firefox 7 37
Chrome 24 77
Safari 3 18
Other 3 7
Given that the randomly selected computer was a desktop, the probability that the computer used
the Internet Explorer browser is .
A) 0.037
B) 0.082
C) 0.112
D) 0.327
Answer: D
Diff: 2
Objective: 4.2.3
79) A psychology class consists of 14 business students and 21 non-business students. Sixteen
students in this class are male. Eight students are both female and business majors. The number
of men in the class who are not business majors is .
A) 6
B) 8
C) 10
D) 11
Answer: C
Diff: 2
Objective: 4.2.3
80) Ten percent of customers who walk into a golf store purchase a golf club and 30% of
customers purchase golf balls. Six percent of customers purchase both clubs and balls. The
percentage of customers who do not purchase clubs or balls is .
A) 0.24
B) 0.35
C) 0.41
D) 0.66
Answer: D
Diff: 2
Objective: 4.2.3

4-26 Chapter 4
81) Thirty-five percent of customers at a restaurant order an alcoholic drink and an appetizer
with dinner. Ten percent of customers do not order alcoholic drink or an appetizer with dinner.
Sixty-five percent of diners order an appetizer with dinner. The percentage of customers who
order an alcoholic drink but do not order an appetizer is .
A) 0.12
B) 0.25
C) 0.30
D) 0.35
Answer: B
Diff: 2
Objective: 4.2.3
82) According to a recent survey, 70% of 18- to 34-year-olds do not keep a budget. A random
sample of six 18- to 34-year-olds was selected. The probability that all six do not keep a budget
is .
A) 0.078
B) 0.118
C) 0.240
D) 0.333
Answer: B
Diff: 1
Objective: 4.2.3
83) According to a survey of business executives, 78% received a pay raise when they asked for
one. A random sample of four executives was selected. The probability that all four received a
raised when they asked for one is .
A) 0.056
B) 0.127
C) 0.237
D) 0.370
Answer: D
Diff: 1
Objective: 4.2.2

84) According to a recent survey, 38% of U.S. households used only cell phones for their phone
service. A random sample of four households was selected. The probability that the first three
used only cell phones and the fourth had a landline is .
A) 0.034
B) 0.070
C) 0.154
D) 0.195
Answer: A
Diff: 2
Objective: 4.2.2
85) If a household has at least one cat, there is a 30% probability that the household has at least
one dog. Thirty percent of households have at least one cat and 33% of households have at least
one dog. Given that a household has at least one dog, the probability that the same household has
at least one cat is .
A) 0.06
B) 0.17
C) 0.27
D) 0.48
Answer: C
Diff: 3
Keywords: Bayes' Theorem
Objective: 4.2.4
86) If a household has at least one cat, there is a 30% probability that the household has at least
one dog. Thirty percent of households have at least one cat and 33% of households have at least
one dog. Given that a household does not have at least one dog, the probability that the same
household does not have at least one cat is .
A) 0.37
B) 0.54
C) 0.61
D) 0.69
Answer: D
Diff: 3
Objective: 4.2.4

4-28 Chapter 4
87) If a customer at a particular grocery store uses coupons, there is a 50% probability that the
customer will pay with a debit card. Thirty percent of customers use coupons and 35% of
customers pay with debit cards. Given that a customer pays with a debit card, the probability that
the same customer uses coupons is .
A) 0.22
B) 0.43
C) 0.60
D) 0.72
Answer: B
Diff: 3
Objective: 4.2.4
88) If a customer at a particular grocery store uses coupons, there is a 50% probability that the
customer will pay with a debit card. Thirty percent of customers use coupons and 35% of
customers pay with debit cards. Given that a customer does not pay with a debit card, the
probability that the same customer does not use coupons is .
A) 0.52
B) 0.60
C) 0.77
D) 0.85
Answer: C
Diff: 3
Objective: 4.2.4
89) The states that if there are k1 choices for the first event, k2 choices for the second
event, . . ., and kn choices for the nth event, then the total number of possible outcomes are
(k1 )( k 2 )( k 3 )...(kn ) .
A) law of large numbers
B) fundamental counting principle
C) addition rule
D) empirical rule
Answer: B
Diff: 1
Keywords: fundamental counting principle
Objective: 4.3.1

90) A computer system for an organization generates four-letter temporary passwords. The total
number of passwords that the system can generate is .
A) 14,950
B) 358,800
C) 456,976
D) none of the above
Answer: C
Diff: 1
Objective: 4.3.1
91) Craftsman sells 10-digit keypads that are installed on homes to open the garage door. The
consumer chooses a 5-number code when programming the keypad. The total number of codes
that the consumer can choose from is .
A) 252
B) 30,240
C) 57,128
D) 100,000
Answer: D
Diff: 1
Objective: 4.3.1
92) Costco sells a matching set of T-shirts and shorts. The T-shirt comes in four colors and six
sizes. The shorts come in three colors and five sizes. The number of unique color and size
combinations of T-shirts and shorts is .
A) 360
B) 425
C) 500
D) 625
Answer: A
Diff: 1
Objective: 4.3.1
93) are the number of different ways in which objects can be arranged in order.
A) Simple events
B) Permutations
C) Random variables
D) Combinations
Answer: B
Diff: 1
Objective: 4.3.2

4-30 Chapter 4
94) are the number of different ways in which objects can be arranged without regard
to order.
A) Simple events
B) Permutations
C) Random variables
D) Combinations
Answer: D
Diff: 1
Keywords: combinations
Objective: 4.3.2
95) The Western Athletic Conference (WAC) consists of eight NCAA teams that compete in a
variety of sports. The number of different ways these eight teams can finish in the conference
standings at the end of the basketball season is .
A) 40,320
B) 162,500
C) 362,880
D) 3,628,880
Answer: A
Diff: 1
Objective: 4.3.2
96) Alison is the chair of a business department that consists of nine full-time faculty. She needs
to schedule a meeting with each faculty to review their performance over the past year. The
number of different ways these nine faculty can be scheduled is .
A) 40,320
B) 162,500
C) 362,880
D) 3,628,880
Answer: C
Diff: 1
Objective: 4.3.2

97) There are 23 golfers participating in a weekend tournament. Prizes are awarded to the first,
second, third, and fourth place finishers. The number of different ways these four places can be
filled by those playing over the weekend is .
A) 3,450
B) 8,855
C) 70,256
D) 212,520
Answer: D
Diff: 1
Objective: 4.3.2
98) A textbook sales representative is responsible for 25 schools and needs to choose three of
these schools to work with today. The number of different ways he can schedule a time to call
these schools is .
A) 2,300
B) 13,800
C) 15,625
D) 26,369
Answer: B
Diff: 1
Objective: 4.3.2
99) There are 30 Major League Baseball teams in the National League. Five of these teams will
make the playoffs at the end of the season. The number of unique groups of teams that can make
the playoffs is .
A) 142,506
B) 252,640
C) 752,988
D) 17,100,720
Answer: A
Diff: 1
Objective: 4.3.2
100) The probability of winning a 5/25 lottery game where 5 numbers are picked from a range of
25 is .
A) 1/32,852
B) 1/53,130
C) 1/353,775
D) 1/6,375,600
Answer: B
Diff: 1
Objective: 4.3.2

4-32 Chapter 4
101) A multiple choice test has 12 questions, with each question having five choices. The
number of different ways a student can answer the 12 questions is .
A) 128
B) 480
C) 792
D) 95,040
Answer: C
Diff: 1
Objective: 4.3.2
102) The following table shows the range of math SAT scores for the incoming freshman class
of business students at Smith University.
Math SAT Scores Number of Students

350 to under 400 40
400 to under 450 98
450 to under 500 106
500 to under 550 65
550 to under 600 17
Determine the probability that a randomly selected student from this incoming class scored from
400 to under 450.
98
Answer: P (400 to under 450) = =
98 = 0.301
40 + 98 +106 + 65 +17 326

Diff: 1

Objective: 4.1.2


350 to under 400 40
400 to under 450 98
450 to under 500 106
500 to under 550 65
550 to under 600 17
Determine the probability that a randomly selected student from this incoming class scored from
450 to under 550.
106 + 65 171
Answer: P ( 450 to under 550 ) = = = 0.525
40 + 98 +106 + 65 +17 326
Diff: 1

Objective: 4.1.2

350 to under 400 40
400 to under 450 98
450 to under 500 106
500 to under 550 65
550 to under 600 17
Determine the probability that a randomly selected student from this incoming class scored 400
or higher.
Answer:
40
P (350 to under 400) = 40
= = 0.123
40 + 98 +106 + 65 +17 326

P (400 or higher) = 1.0 − 0.123 = 0.877
Diff: 1
Keywords: complement
Objective: 4.1.2

4-34 Chapter 4
105) The following contingency table shows the number of customers who bought various
brands of inkjet printers and their gender.
Printer Brand Men Women

HP 30 21
Canon 18 6
Epson 9 6
Brother 3 3
Other 24 30
The probability that a randomly selected customer from this sample bought a Canon printer or a
Brother printer is .
Answer: P (Canon or Brother) = 24 + 6 = 30 = 0.20
150 150 150

Diff: 1
Objective: 4.2.2

HP 30 21
Canon 18 6
Epson 9 6
Brother 3 3
Other 24 30
The probability that a randomly selected customer from this sample bought an HP printer or is a
female is .
Answer: P (H-P or Female) = 51 + 66 − 21 = 96 = 0.64
150 150 150 150

Diff: 2
Objective: 4.2.2


HP 30 21
Canon 18 6
Epson 9 6
Brother 3 3
Other 24 30
The probability that a randomly selected customer from this sample bought an Epson printer and
is a male is .
9
Answer: P (Epson and Male) = = 0.06
150
Diff: 1
Objective: 4.2.1
108) A random sample of adults was asked how many books they typically read in a year. The
following contingency table shows these results along with their age group.
Number of Books Less than 40 Years Old 40 Years or More

None 15 27
1-2 21 30
3-5 24 36
6-10 18 33
11 or more 42 54
The probability that a randomly selected person from this sample typically reads 1-5 books per
year is .
111
Answer: P (1-2 or 3-5) = 51 + 60 = = 0.37
300 300 300

Diff: 1
Objective: 4.2.2

4-36 Chapter 4

None 15 27
1-2 21 30
3-5 24 36
6-10 18 33
11 or more 42 54
The probability that a randomly selected person from this sample typically reads 6-10 books per
year or is 40 years or older is .
Answer: P (6-10 or 40+ Years) = 51 180 33 = 198 = 0.66
+ −
300 300 300 300

Diff: 2
Objective: 4.2.2

None 15 27
1-2 21 30
3-5 24 36
6-10 18 33
11 or more 42 54
The probability that a randomly selected person from this sample typically reads 11 or more
books per year and is less than 40 years is .
42
Answer: P (11+ Books and Less than 40 Years) = = 0.14
300
Diff: 1
Objective: 4.2.1


None 15 27
1-2 21 30
3-5 24 36
6-10 18 33
11 or more 42 54
Given that a randomly selected adult from this sample reads 3-5 books per year, determine the
probability that this person is less than 40 years old.
Answer:
P (Less than 40 and 3-5 books)
P (Less than 40 | 3-5 books) =
P (3-5 books)
24
P (Less than 40 and 3-5 books) = = 0.08
300
60
P (3-5 books) = = 0.20
300
0.08
P (Less than 40 | 3-5 books )= = 0.40
0.20
Diff: 2
Objective: 4.2.3

4-38 Chapter 4

None 15 27
1-2 21 30
3-5 24 36
6-10 18 33
11 or more 42 54
Given that a randomly selected adult from this sample is 40 years or more, determine the
probability that this person reads 6-10 books per year.
Answer:
P (6-10 books and 40 years or more)
P (6-10 books | 40 years or more) =
P (40 years or more)
33
P (6-10 books and 40 years or more) = = 0.11
300
180
P (40 years or more )= = 0.60
300
0.11
P (6-10 books | 40 years or more )= = 0.183
0.60
Diff: 2
Objective: 4.2.3


HP 30 21
Canon 18 6
Epson 9 6
Brother 3 3
Other 24 30
Given that a randomly selected printer from this sample was a Canon, determine the probability
that it was purchased by a man.
Answer:
P (man and Canon)
P (man | Canon) =
P (Canon)
18
P (man and Canon) = = 0.12
150
24
P (Canon) = = 0.16
150
0.12
P (man | Canon )= = 0.75
0.16
Diff: 2
Objective: 4.2.3

4-40 Chapter 4

HP 30 21
Canon 18 6
Epson 9 6
Brother 3 3
Other 24 30
Given that a randomly selected printer from this sample was purchased by a female customer,
determine the probability that the printer was an HP.
Answer:
P (H-P and woman)
P (H-P | woman) =
P (woman)
21
P (H-P and woman) = = 0.14
150
66
P (woman) = = 0.44
150
0.14
P (H-P | woman )= = 0.318
0.44
Diff: 2
Objective: 4.2.3
115) A random sample of homeowners from Maine and Delaware was asked to identify the
primary source of heat for their homes. The following contingency table shows these results.
Source of Heat Maine Delaware

Natural Gas 160 105
Electricity 115 45
Oil 20 10
Propane 15 10
Other 5 15
The probability that a randomly selected home from this sample uses oil as its primary source of
heat and is located in Maine is .
20
Answer: P (oil and Maine) = = 0.04
500
Diff: 1
Objective: 4.2.1


Natural Gas 160 105
Electricity 115 45
Oil 20 10
Propane 15 10
Other 5 15
The probability that a randomly selected home from this sample uses natural gas as its primary
source of heat or is located in Delaware is .
200
Answer: P (propane or Delaware) = 25
+
185
−
10 = = 0.40
500 500 500 500

Diff: 2
Objective: 4.2.2

Natural Gas 160 105
Electricity 115 45
Oil 20 10
Propane 15 10
Other 5 15
The probability that a randomly selected home from this sample uses electricity as its primary
source of heat given that the home is located in Maine is .
Answer:
P (electricity and Maine)
P (electricity | Maine) =
P (Maine)
115
P (electricity and Maine )= = 0.23
500
315
P (Maine )= = 0.63
500
0.23
P (electricity | Maine )= = 0.365
0.63
Diff: 2
Objective: 4.2.3

4-42 Chapter 4

Natural Gas 160 105
Electricity 115 45
Oil 20 10
Propane 15 10
Other 5 15
Given that the primary source of heat is natural gas, determine the probability that a randomly
selected home from this sample is located in Delaware.
Answer:
P (Delaware and natural gas)
P (Delaware | natural gas) =
P (natural gas)
105
P (Delaware and natural gas )= = 0.21
500
265
P (natural gas )= = 0.53
500
0.21
P (Delaware | natural gas )= = 0.396
0.53
Diff: 2
Objective: 4.2.3

119) The following contingency table shows the number of adults with credit scores 725 or
above and below 725 as well as their marital status.
Credit Score Single (C) Married (D)

Below 725 (A) 39 33
725 or Above (B) 15 63
Identify the marginal probabilities for this table.

Answer:
Credit Score Single (C) Married (D) Total
Below 725 (A) 0.26 0.22 0.48
725 or Above (B) 0.10 0.42 0.52
Total 0.36 0.64 1.00
P(A) = 0.48
P(B) = 0.52
P(C) = 0.36
P(D) = 0.64
Diff: 1
Keywords: contingency table, marginal probabilities
Objective: 4.2.3

Below 725 (A) 39 33
725 or above (B) 15 63
Identify the joint probabilities for this table.

Answer:
Below 725 (A) 0.26 0.22 0.48
725 or above (B) 0.10 0.42 0.52
Total 0.36 0.64 1.00
P(A and C) = 0.25

P(A and D) = 0.22
P(B and C) = 0.10
P(B and D) = 0.42
Diff: 1
Keywords: contingency table, joint probabilities
Objective: 4.2.3

4-44 Chapter 4

Below 725 (A) 39 33
725 or above (B) 15 63
Identify the conditional probabilities for this table.

Answer:
Below 725 (A) 0.26 0.22 0.48
725 or above (B) 0.10 0.42 0.52
Total 0.36 0.64 1.00
P ( A and C ) 0.26
P( A|C) = = = 0.722
P (C ) 0.36
P ( A and D) 0.22
P ( A | D) = = = 0.344
P ( D) 0.64
P ( B and C ) 0.10
P(B | C) = = = 0.278
P (C ) 0.36
P ( B and D ) 0.42
P ( B | D) = = = 0.656
P ( D) 0.64
Diff: 1
Keywords: contingency table, conditional probabilities

Objective: 4.2.3


Below 725 (A) 39 33
725 or above (B) 15 63
Construct a decision tree for this table.

Answer:
Below 725 (A) 0.26 0.22 0.48
725 or above (B) 0.10 0.42 0.52
Total 0.36 0.64 1.00
Diff: 1
Keywords: contingency table, decision tree
Objective: 4.2.3

4-46 Chapter 4
123) The following contingency table shows the number of adults with credit scores above and
below 725 as well as their marital status.

Below 725 (A) 39 33
725 or above (B) 15 63
Determine whether Events A and C are independent or dependent. What conclusions can be
made?
Answer:
P ( A) = 0.48
P ( A and C )
P( A | C) =
P (C )
P ( A and C ) = 0.26
P (C ) = 0.36
0.26
P (A | C )= = 0.722
0.36
P ( A | C )  P ( A)
Events A and C are dependent. Married adults appear to have higher credit scores than single
adults.
Diff: 2
Keywords: contingency table, dependent events
Objective: 4.2.3
124) According to a Harris Interactive survey, 55% of college students prefer traditional
textbooks over e-books. A random sample of five college students was selected. Determine the
probability that all five students prefer traditional textbooks.
Answer: P (All 5 prefer textbooks) = 0.555 = 0.050
Diff: 1
Reference: Page 162
125) According to a Rasmussen survey, 23% of adults responded that vanilla was their favorite
ice cream flavor. A random sample of three adults was selected. Determine the probability that
vanilla ice cream is the favorite flavor for all three adults.
Answer: P (Vanilla is favorite for all 3) = 0.233 = 0.012
Diff: 1
Objective: 4.2.2

126) According to IDC, Samsung controls 19.0% of the smartphone market. A random sample of
three was selected. Determine the probability that the first two phones are Samsung and the third
phone is not.
Answer: P(Samsung) = 0.19
P(Not a Samsung) = 1 - 0.19 = 0.81
P(Samsung, Samsung, Not a Samsung) = (0.19)(0.19)(0.81) = 0.029
Diff: 2
Objective: 4.2.2
127) A college student population of freshman and seniors was surveyed to determine if they
prefer traditional textbooks or digital textbooks. According to this sample, 60% of freshman
students preferred digital textbooks. Forty percent of the sample consisted of freshman students.
Also, 20% of senior students preferred digital textbooks. Given that a student prefers digital
textbooks, use Bayes' Theorem to determine the probability that the student is a freshman.
Answer: Define A1 = student is a freshman, A2 = student is a senior, B = student prefers a digital
textbook.
P ( A1 ) = 0.40
P ( A2 ) = 1− 0.40 = 0.60
P ( B | A1 ) = 0.60
P ( B | A2 ) = 0.20
P ( A 1 ) P ( B | A1 )
P ( A1 | B ) =
P ( A1 ) P ( B | A 1 ) + P ( A2 ) P ( B | A2 )
P ( A1 | B ) =
(0.40)(0.60)
(0.40)(0.60) + (0.60)(0.20)
0.24
P ( A | B) = 0.24 = = 0.67
0.24 + 0.12
1
0.36
Diff: 3

Objective: 4.2.4

4-48 Chapter 4
128) A survey asked business travelers if they worked harder on a business trip. Fifty percent of
the respondents were younger than 45 years and 50% where 45 years or older. Sixty-four percent
of the younger respondents indicated they did work harder on business trips while 30% of the
older respondents indicated they worked harder on business trips. Given that the respondent
indicated he/she worked harder on business trips, use Bayes' Theorem to determine the
probability that the person is younger than 45 years old.
Answer: Define A1 = respondent is younger than 45 years, A2 = respondent is 45 years or older,
B = respondent indicated he/she worked harder on a business trip.
P ( A1 ) = 0.50
P ( A2 ) = 0.50
P ( B | A1 ) = 0.64
P ( B | A2 ) = 0.30
P ( A 1 ) P ( B | A1 )
P ( A1 | B ) =
P ( A1 ) P ( B | A 1 ) + P ( A2 ) P ( B | A2 )
P ( A1 | B ) =
(0.50)(0.64)
(0.50)(0.64) + (0.50)(0.30)
0.32
P ( A | B) = 0.32 = = 0.681
0.32 + 0.15
1
0.47
Diff: 3

Objective: 4.2.4

129) A survey of Americans ages 18-24 years old found the following political party affiliations.
Party Percentage
Independent 50%
Democratic 30%
Republican 20%
Consider the following information:

• Of those affiliated with the Independent party, 56% were male.
• Of those affiliated with the Democratic party, 40% were male.
• Of those affiliated with the Republican party, 35% were male.
Use Bayes' Theorem to determine the probability that a person who is male is affiliated with the
Independent party.
Answer: Define A1 = Independent party, A2 = Democrat party, A3 = Republican party, B = male.
P ( A1 ) = 0.50
P ( A2 ) = 0.30
P ( A3 ) = 0.20
P ( B | A1 ) = 0.56
P ( B | A2 ) = 0.40
P ( B | A3 ) = 0.35
P ( A1 ) P ( B | A1 )
P ( A1 | B ) =
P ( A1 ) P ( B | A 1 ) + P ( A2 ) P ( B | A2 ) + P ( A 3 ) P ( B | A3 )
P ( A1 | B ) =
(0.50)(0.56)
(0.50)(0.56) + (0.30)(0.40) + (0.20)(0.35)
0.28
P ( A | B) = 0.28 = = 0.596
1
0.28 + 0.12 + 0.07 0.47
Diff: 3
Objective: 4.2.4

4-50 Chapter 4
130) A powdered ice tea manufacturer has production facilities in Boston, Atlanta, and Chicago.
Boston produces 60% of the company's total output while Atlanta and Chicago each
manufacturer 20%. Historically, 2% of the cans of ice tea from the Boston facility have sugar
content that is lower than the minimum standard. Five percent of the output from the Atlanta
facility produced low sugar ice tea while 6% of the Chicago plant produced low sugar ice tea. A
randomly selected can of powdered ice tea at a grocery store has low sugar content. Use Bayes'
Theorem to determine the probability that the container came from the Chicago plant.
Answer: Define A1 = Boston, A2 = Atlanta, A3 = Chicago, B = low sugar content.
P ( A1 ) = 0.60
P ( A2 ) = 0.20
P ( A3 ) = 0.20
P ( B | A1 ) = 0.02
P ( B | A2 ) = 0.05
P ( B | A3 ) = 0.06
P ( A3 ) P ( B | A3 )
P ( A3 | B ) =
P ( A1 ) P ( B | A 1 ) + P ( A2 ) P ( B | A2 ) + P ( A 3 ) P ( B | A 3 )
(0.20)(0.06)
P ( A3 | B ) =
(0.60)(0.02) + (0.20)(0.05) + (0.20)(0.06)
0.012
P( A | B) = 0.012 = = 0.353
3
0.012 + 0.01+ 0.012 0.034
Diff: 3
Objective: 4.2.4
131) Season's Pizza offers a delivery special for a single topping pizza, drinks, and dessert with
the following choices:
• Pizza sizes — four choices
• Pizza crusts — four choices
• Pizza toppings — nine choices
• Drinks — five choices
• Desserts — seven choices
How many unique orders can be placed for this delivery special?
Answer: 4 x 4 x 9 x 5 x 7 = 5,040 unique orders
Diff: 1
Objective: 4.3.1

132) Pat is a faculty member at State University where student evaluations are based on the
percentage of students who would positively recommend the instructor to other students. Ninety
percent of Pat's students from the previous semester gave her a positive recommendation. A
random sample of 15 students from Pat's classes was selected. What is the probability that all 15
gave Pat a positive recommendation?
Answer: P (All 15 students gave a positive recommendation) = 0.9015 = 0.206
Diff: 1
Objective: 4.3.1
133) A business class consists of seven groups of students who each make a presentation during
the semester. The instructor grades the presentations and rank orders the performance of these
groups from best to worst. Determine the number of ways these seven groups can finish in this
rank order.
Answer: 7! = 5,040
Diff: 1
Objective: 4.3.2
134) John works for Precision Door Service, a company that installs garage doors in residential
homes. He has a list of 18 customers who would like an onsite visit and want to receive an
estimate for garage door replacement. John can schedule four customers tomorrow. Determine
the number of ways John can schedule his four customers during the day.
18!
Answer: 18 P4 = = (18)(17)(16)(15) = 73, 440
(18 − 4)!
Diff: 1
Objective: 4.3.2
135) There are 14 youth soccer teams competing in a weekend tournament. Trophies will be
awarded to the teams that finish in first, second, and third place. How many different ways can
teams finish in these three places?
14!
Answer: 14 P3 = = (14)(13)(12) = 2,184
(14 − 3)!
Diff: 1
Objective: 4.3.2

4-52 Chapter 4
136) A manager of a department that consists of 18 employees needs to select 4 employees to

participate in a training program. Determine the number of unique ways in which this group of
employees can be selected for the training program.
Answer: 17 4 17! (17)(16)(15)(14)
C = = = 2, 380
(17 − 4)!4! ( 4 )( 3 )( 2 )
Diff: 1
Objective: 4.3.2
137) A class consists of 15 female students and 12 male students. Determine the number of ways
that 2 female students and 3 male students can be uniquely selected from this class.
Answer:
Female: 15C 2 =
15!
=
(15)(14) = 105
(15 − 2)!2! 2
Male: 12C3 =
12!
=
( 12)(11)(10)
= 220
(12 − 3)!3! ( 3 )( 2 )
(105)(220) = 23,100
Diff: 2
Objective: 4.3.2
138) Determine the probability of being dealt four-of-a-kind in five-card poker.

Answer: P (Four-of-a-kind) =
(13)(12)(4) = 624 = 0.000240
52 C5 2, 598, 960
Diff: 3
Objective: 4.3.2

Business Statistics 2nd Edition Donnelly Test Bank 1

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Business Statistics 2nd Edition Donnelly Test Bank 1

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Business Statistics 2nd Edition

Donnelly Test Bank

Business Statistics (Donnelly)

1) A probability is a numerical value that indicates the chance, or likelihood, of a

2) An event represents all of the possible outcomes of an experiment.

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12) Joint probability is another term used for simple probability.

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17) Consider the following events:

Events A and B are mutually exclusive and collectively exhaustive.

18) Consider the following events:

Events A and B are mutually exclusive.

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Copyright ©2015 Pearson Education, Inc.

25) Mathematically, it is impossible for P(A and B) > P(A).

27) Two events cannot be both independent and mutually exclusive.

29) When the order of objects is important, use permutations.

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32) probability represents the likelihood of a single event occurring by itself.

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Education Level Frequency

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Education Level Frequency

Working Status Frequency

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Working Status Frequency

Credit Score Frequency

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Credit Score Frequency

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Copyright ©2015 Pearson Education, Inc.

51) The probability of the intersection of two events is known as a

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Age Domestic Import

Age Domestic Import

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Age Domestic Import

Age Domestic Import

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Monthly Rent York Lancaster Dover

Monthly Rent York Lancaster Dover

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Monthly Rent York Lancaster Dover

Monthly Rent York Lancaster Dover

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Camera Brand Best Buy Walmart

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Camera Brand Best Buy Walmart

Camera Brand Best Buy Walmart

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Browser Desktop Laptop

Browser Desktop Laptop

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Browser Desktop Laptop

Browser Desktop Laptop

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70) probability is the probability of Event A occurring without any additional

Age Domestic Import

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Age Domestic Import

Monthly Rent York Lancaster Dover

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Monthly Rent York Lancaster Dover