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ADM2303: STATISTICS FOR MANAGEMENT I

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Final Exam Practice Questions

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Fall 2017 final exam, plus more questions

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(For practice only)

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Please note that these practice questions are

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offered *exclusively
exclusively*
exclusively to aide each student’s
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individual preparation for ADM2303 final

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exam. Their use in for-profit review sessions is

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strictly forbidden. You do *not

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not have permission
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to distribute this material (the copyright is

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owned by the various professors who developed

the questions).
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Q1. In a standard normal model, which values of z cut off the middle 96%.

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a) 0 to 2.05

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b) -2.33 to 2.33
c) -3.00 to 3.00

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d) -1.75 to 1.75

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e) -2.05 to 2.05

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Q1. In a standard normal model, which values of z cut off the middle 96%.
a) 0 to 2.05
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b) -2.33 to 2.33
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c) -3.00 to 3.00
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d) -1.75 to 1.75
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e) -2.05 to 2.05
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Q2. After increased patrol, cars on a road travel at speeds averaging 55 km/h. If 93% of

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vehicles travel below 68 km/h, what approximate standard deviation could
represent this model (assuming a normal model is appropriate)?

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a) 30.4

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b) 8.8

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c) 63.2
d) 51.2

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e) -8.8

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Q2. After increased patrol, cars on a road travel at speeds averaging 55 km/h. If 93% of
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vehicles travel below 68 km/h, what approximate standard deviation could

represent this model (assuming a normal model is appropriate)?
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a) 30.4
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b) 8.8
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c) 63.2
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d) 51.2
e) -8.8
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Q3. Suppose that in a certain population 45% of people have type O blood. A researcher
selects people at random from this population. What is the probability that there is

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at least one person with type O blood among the first 6 people checked?

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a) 0.0277

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b) 0.0226
c) 0.0083

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d) 0.0503

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e) 0.9723

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Q3. Suppose that in a certain population 45% of people have type O blood. A researcher
selects people at random from this population. What is the probability that there is
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at least one person with type O blood among the first 6 people checked?
a) 0.0277
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b) 0.0226
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c) 0.0083
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d) 0.0503
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e) 0.9723
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Q4. People with O-negative blood are called “universal donors” because O-negative blood
can be given to anyone else regardless of recipient’s blood type. About 6% of people

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have type O-negative blood. A clinic is running a blood drive. If at least 220 O-negative
donors give blood, the clinic will have sufficient O-negative blood for the coming month.

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If 4000 donors come to the blood drive, what’s the probability that the clinic will not
have sufficient O-negative donors?

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a) 0.131
b) 0.086

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c) 0.036

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d) 0.464
e) 0.109

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Q4. People with O-negative blood are called “universal donors” because O-negative blood
can be given to anyone else regardless of recipient’s blood type. About 6% of people
have type O-negative blood. A clinic is running a blood drive. If at least 220 O-negative
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donors give blood, the clinic will have sufficient O-negative blood for the coming month.
If 4000 donors come to the blood drive, what’s the probability that the clinic will not
have sufficient O-negative donors?
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a) 0.131
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b) 0.086
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c) 0.036
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d) 0.464
e) 0.109
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Q5. The time patients spend in a clinic for their appointment follows the uniform distribution
with between 10 and 35 minutes. The goal for of the clinic manager for this clinic is to

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ensure that 80% of the patients wait no more than 25 minutes for the appointment. Is

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this goal being met?
a) No, the objective is not met since less than 80 percent of patients meet the objective

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b) Yes, because patients are waiting less that 25 minutes for an 80% objective
c) Yes, because patients are waiting 30 minutes for their appointments on average

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d) No, because patients are waiting 30 minutes for their appointments on average

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e) None of the above

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Q5. The time patients spend in a clinic for their appointment follows the uniform distribution
with between 10 and 35 minutes. The goal for of the clinic manager for this clinic is to
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ensure that 80% of the patients wait no more than 25 minutes for the appointment. Is
this goal being met?
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a) No, the objective is not met since less than 80 percent of patients meet the objective
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b) Yes, because patients are waiting less that 25 minutes for an 80% objective
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c) Yes, because patients are waiting 30 minutes for their appointments on average
d) No, because patients are waiting 30 minutes for their appointments on average
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e) None of the above

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Questions 6 – 8: HIV

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Suppose that the probability of contracting HIV in a country is small, with p about

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0.0005 for a new case in a given year. Suppose that that the number of new cases can
be modelled by a Poisson distribution. In a small town of 8000 people:

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Q6. What is the expected number of new cases?

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a) 2
b) 4
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c) 6
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d) 8
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e) 10
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Q6. What is the expected number of new cases?

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a) 2

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b) 4

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c) 6
d) 8

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e) 10

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Q7. Approximate the probability that there will be at least one new case of HIV next year
in this town.
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a) 0.482
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b) 0.132
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c) 0.982
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d) 0.832
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e) 0.502
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Q7. Approximate the probability that there will be at least one new case of HIV next year

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in this town.

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a) 0.482
b) 0.132

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c) 0.982

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d) 0.832

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e) 0.502

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Q8. Find the closest value to the probability that during the next 2 years, there will be
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exactly one new case.

a) 0.011
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b) 0.032
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c) 0.021
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d) 0.003
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e) 0.008
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Q8. Find the closest value to the probability that during the next 2 years, there will be

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exactly one new case.

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a) 0.011

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b) 0.032
c) 0.021

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d) 0.003

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e) 0.008

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Questions 9 – 10: YMCA

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The indoor pool at the local YMCA uses a filtration system to keep the pool water clean.
This system requires that the filter be backwashed when the discharge pressure for the
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water pump reaches 25 psi. the average time between backwashing is 10 days and this
time period follows the exponential probability distribution.
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Q9. What is the standard deviation of the time between backwashing?

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a) 10

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b) 0.1

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c) 0.01

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d) 100
e) 0.001

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Q9. What is the standard deviation of the time between backwashing?

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a) 10
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b) 0.1
c) 0.01
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d) 100
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e) 0.001
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Q10. What is the probability that the next backwash will occur between 6 and 9 days

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from the prior backwash?

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a) 0.011

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b) 0.420
c) 0.501

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d) 0.122

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e) 0.142

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Q10. What is the probability that the next backwash will occur between 6 and 9 days
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from the prior backwash?

a) 0.011
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b) 0.420
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c) 0.501
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d) 0.122
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e) 0.142
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Questions 11 – 12: Pew Research Data

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According to Pew Research, 50% of people over 30 and 75% of teenagers were using

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social networking site in early 2012. Most of that activity was on Facebook, so let’s
assume these probabilities apply strictly to Facebook. Among a group of 10 people,

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what’s the probability that:

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Q11. At least one of the people was not on Facebook if they were all over 30?
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a) 0.779
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b) 0.892
c) 0.300
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d) 0.088
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e) 0.999
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Q11. At least one of the people was not on Facebook if they were all over 30?

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a) 0.779

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b) 0.892

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c) 0.300

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d) 0.088
e) 0.999

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Q12. At least one of the people was not on Facebook if they were all teenagers?
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a) 0.944
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b) 0.844
c) 0.744
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d) 0.644
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e) 0.544
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Q12. At least one of the people was not on Facebook if they were all teenagers?

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a) 0.944

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b) 0.844

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c) 0.744

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d) 0.644
e) 0.544

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Q13. In a management trainee program, 80 percent of the trainees are female, 20

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percent male. Ninety percent of the females attended college, 78 percent of the
males attended college. A management trainee is selected at random. What is the
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probability that the person selected is a female who did NOT attend college?
(a) 0.20
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(b) 0.08
(c) 0.25
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(d) 0.80
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(e) 0.72
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Q13. In a management trainee program, 80 percent of the trainees are female, 20

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percent male. Ninety percent of the females attended college, 78 percent of the
males attended college. A management trainee is selected at random. What is the

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probability that the person selected is a female who did NOT attend college?

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(a) 0.20
(b) 0.08

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(c) 0.25
(d) 0.80
(e) 0.72

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Questions 14 – 17: Prolab

Prolab has just obtained a contract from the Federal Government to provide 10,000 electronic
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components for the Civilian Unmanned Aircraft Systems program of the National Research Center.
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Prolab has the option to purchase these components at a cost of 14$ per component from a supplier
where each component is 100% certified by the supplier to be within government quality standards.
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If the components are produced by Prolab, they will be manufactured at a lower cost but the company's
engineers believe that the nature of the manufacturing process can lead to a relatively high proportion of
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components that do not meet government standards based on historical data.

According to the head of the quality assurance department, the proportion of non-standard components
could be broken down according to the following table:
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If Prolab manufactures the components, it will have total fixed costs of 15,000$ and production variable
costs of 12$ per component. Components that are non-standard can be rectified at a cost of 10$ each.

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Q14. How can the probability of non-standard components be determined?

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a) Theoretical probability assessment

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b) Subjective probability assessment

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c) Empirical probability assessment

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d) Binomial probability assessment
e) None of the above

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Q14. How can the probability of non-standard components be determined?

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a) Theoretical probability assessment

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b) Subjective probability assessment

c) Empirical probability assessment
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d) Binomial probability assessment

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e) None of the above

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Q15. Determine the expected cost to rectify the components that are non-standard from

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the production of the 10,000 components.

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a) Between 0$ and 15$

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b) Between 15$ and 5,000$
c) Between 5,000$ and 10,000$

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d) Between 10,000$ and 50,000$

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e) Above 50,000$

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Q15. Determine the expected cost to rectify the components that are non-standard from
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the production of the 10,000 components.

a) Between 0$ and 15$
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b) Between 15$ and 5,000$

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c) Between 5,000$ and 10,000$

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d) Between 10,000$ and 50,000$

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e) Above 50,000$
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Q16. What is the total production cost of the 10,000 components including the cost to

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rectify non-standard components?

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a) Between 0$ and 15$

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b) Between 15$ and 5,000$
c) Between 5,000$ and 10,000$

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d) Between 10,000$ and 50,000$

e
e) Above 50,000$

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Q16. What is the total production cost of the 10,000 components including the cost to
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rectify non-standard components?

a) Between 0$ and 15$
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b) Between 15$ and 5,000$

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c) Between 5,000$ and 10,000$

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d) Between 10,000$ and 50,000$

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e) Above 50,000$
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Q17. Should the components be manufactured by Prolab or purchased from the

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supplier?

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a) Manufactured by Prolab with a gain of 3,000$ over purchasing from the supplier

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b) Manufactured by Prolab with a gain of 5,000$ over purchasing from the supplier
c) Manufactured by Prolab with a gain of 7,000$ over purchasing from the supplier

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d) Purchased from the supplier

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e) Both option cost the same, select either one

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Q17. Should the components be manufactured by Prolab or purchased from the

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supplier?
a) Manufactured by Prolab with a gain of 3,000$ over purchasing from the supplier
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b) Manufactured by Prolab with a gain of 5,000$ over purchasing from the supplier
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c) Manufactured by Prolab with a gain of 7,000$ over purchasing from the supplier
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d) Purchased from the supplier

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e) Both option cost the same, select either one

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Questions 18 – 33: E-Vehicle Battery Cell Duration

Hypersynergy is a brand of battery cell for e-vehicles. We compare the mileage that can be

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achieved by a standard e-vehicle using the industry standard battery cell (Endure), with one
from Hypersynergy. Thirty data points are summarized in the box-and-whisker plot for

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Endure in the figure below. You will address data for Hypersynergy later (its box and whisker

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plot are left blank for the moment).

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The next 7 questions concern the (mileage/recharge) data for Endure only. For each question

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please select the choice that most closely matches the indicated summary statistic or

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characteristic.
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Q18. The median.

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a) This summary cannot be determined based on the data

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b) 340
c) 353
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d) 347
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e) 567
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Q18. The median.

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a) This summary cannot be determined based on the data

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b) 340

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c) 353

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d) 347
e) 567

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Q19. The interquartile range (IQR).

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a) 75
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b) [326, 367]
c) 254
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d) 32
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e) 42
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Q19. The interquartile range (IQR).

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a) 75

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b) [326, 367]

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c) 254

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d) 32
e) 42

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Q20. Describe the distribution for the Endure case. The distribution ...
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a) ... follows a normal model

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b) ... follows a uniform distribution

c) … is left skewed
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d) … is right skewed
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e) … demonstrates heteroscedasticity
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Q20. Describe the distribution for the Endure case. The distribution ...

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a) ... follows a normal model

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b) ... follows a uniform distribution

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c) … is left skewed

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d) … is right skewed
e) … demonstrates heteroscedasticity

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Q21. Estimate the proportion of data (Endure only) that exceeded 415 miles/recharge
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a) About 50 percent
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b) About 7 percent
c) This answer cannot be determined
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d) About zero percent (none)

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e) About 25 percent
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Q21. Estimate the proportion of data (Endure only) that exceeded 415 miles/recharge

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a) About 50 percent

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b) About 7 percent

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c) This answer cannot be determined

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d) About zero percent (none)
e) About 25 percent

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Q22. Estimate the proportion of data (Endure only) falling below 315 miles/recharge
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a) About 25 percent
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b) About 10 percent
c) This answer cannot be determined
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d) About 30 percent
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e) About zero percent (none)

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Q22. Estimate the proportion of data (Endure only) falling below 315 miles/recharge

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a) About 25 percent

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b) About 10 percent

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c) This answer cannot be determined

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d) About 30 percent
e) About zero percent (none)

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You note that a Canadian press release would be more understandable if summaries
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were expressed in kilometers/recharge (note that there are roughly 1.6 kilometers per
mile). How will the following summary statistics change when reporting in
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kilometers/recharge
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Q23. The interquartile range. Denote the original interquartile range IQR

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a) It will remain unchanged

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b) The new interquartile range will equal IQR*1.6

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c) Cannot be determined

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d) The new interquartile range will be equal to (IQR+160)
e) The new interquartile range will equal IQR/1.6

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Q23. The interquartile range. Denote the original interquartile range IQR
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a) It will remain unchanged

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b) The new interquartile range will equal IQR*1.6

c) Cannot be determined
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d) The new interquartile range will be equal to (IQR+160)

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e) The new interquartile range will equal IQR/1.6

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Q24. The coefficient of variation, CoV. Denote the original coefficient of variation, v.

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a) We cannot determine how the CoV will change since we do not know the mean.

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b) The new coefficient of variation will equal 1.6*v

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c) The new coefficient of variation will equal 1.6*1.6*v

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d) The new coefficient of variation will equal v/1.6
e) It will remain unchanged

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Q24. The coefficient of variation, CoV. Denote the original coefficient of variation, v.
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a) We cannot determine how the CoV will change since we do not know the mean.
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b) The new coefficient of variation will equal 1.6*v

c) The new coefficient of variation will equal 1.6*1.6*v
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d) The new coefficient of variation will equal v/1.6

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e) It will remain unchanged

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The Hypersynergy battery is characterized by just 16 data points.
These data are summarized in the stem and leaf plot.

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no
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Fig 2. Stem and leaf plot of the 16 data points characterizing the

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mileage/recharge achieved by the Hypersynergy battery cell. (Hint, the
data points are 330, 330, 350, … 460, 550) – the leaf unit is 10

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The next 4 questions concern summaries of these 16 data points.

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Q25. Identify the median.

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a) 390
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b) 230
c) 3.7
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d) 370
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e) 8.5
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Q25. Identify the median.

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a) 390

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b) 230

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c) 3.7

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d) 370
e) 8.5

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Q26. Identify the interquartile range (IQR)

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a) [360, 430]
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b) 230
c) 0.7
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d) 70
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e) 5
nd
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Q26. Identify the interquartile range (IQR)

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a) [360, 430]

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b) 230

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c) 0.7

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d) 70
e) 5

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Q27. Consider the inner fences. Report the upper value for these inner fences
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a) 535
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b) 440
c) 5.35
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d) 480
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e) 500
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Q27. Consider the inner fences. Report the upper value for these inner fences

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a) 535

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b) 440

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c) 5.35

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d) 480
e) 500

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To answer the following questions, you will find it

ua

helpful to construct a box-and-whisker plot of the

Hypersynergy data shown in the stem and leaf plot. The
id

following questions will draw from that plot.

iv
nd
rI
Fo

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32
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io
b ut
Q28. Consult Fig 3 and identify the option (A-E) that most closely matches your box-and-

tri
whisker plot for the Hypersynergy data.

is
rd
no
e
us
l ic
ub
rp
65
fo
ot
N
y.
nl
O
se

Q28. Consult Fig 3 and identify the option (A-E) that most closely matches your box-and-
lU

whisker plot for the Hypersynergy data.

ua
id
iv
nd
rI
Fo

66

33
 2019-11-27

n.
io
b ut
tri
is
Q29. Which of the following are reasonable summaries of the contrast between the

rd
Endure and Hypersynergy datasets?

no
a) Less than 25% of the Hypersynergy data fall below Endure's Q3
b) 75% of the Endure data are exceeded by the median for the Hypersynergy data

e
c) The same number of data points fall within the IQR's of the two datasets (Endure

us
versus Hypersynergy)
d) The IQR is greater for the Endure data than the Hypersynergy data

ic
e) Endure shows more outliers in excess of 450 miles/recharge

l
ub
rp
67
fo
ot
N
y.
nl
O
se
lU
ua

Q29. Which of the following are reasonable summaries of the contrast between the
Endure and Hypersynergy datasets?
id

a) Less than 25% of the Hypersynergy data fall below Endure's Q3

iv

b) 75% of the Endure data are exceeded by the median for the Hypersynergy data
nd

c) The same number of data points fall within the IQR's of the two datasets (Endure
rI

versus Hypersynergy)
Fo

d) The IQR is greater for the Endure data than the Hypersynergy data
e) Endure shows more outliers in excess of 450 miles/recharge

68

34
 2019-11-27

n.
io
ut
b
Q30. Reflecting on the general properties of a single box-and-whisker plot, which of

tri
following is impossible

is
a) A plot showing a box but no whiskers and no outliers

rd
b) A plot showing a box but just one whisker
c) A plot showing a single line (median coinciding with Q1 and Q3, and no outliers)

no
d) A plot showing two whiskers above Q3

e
e) A plot demonstrating right-skewed outliers and a median that is closer to Q1

us
than Q3

l ic
ub
rp
69
fo
ot
N
y.
nl
O
se

Q30. Reflecting on the general properties of a single box-and-whisker plot, which of

lU

following is impossible
a) A plot showing a box but no whiskers and no outliers
ua

b) A plot showing a box but just one whisker

id

c) A plot showing a single line (median coinciding with Q1 and Q3, and no outliers)
iv

d) A plot showing two whiskers above Q3

nd

e) A plot demonstrating right-skewed outliers and a median that is closer to Q1

than Q3
rI
Fo

70

35
 2019-11-27

n.
io
ut
b
Questions 31 and 32:

tri
The chief scientist was suspicious when she found out that

is
the first four data values for Hypersynergy all fell below the

rd
Q2 for this dataset. You may assume that these data were
sampled randomly. Answer questions 31 and 32

no
e
us
icl
ub
rp
71
fo
ot
N
y.
nl
O
se

Q31. What is the probability of such an event?

lU

a) 5 percent
ua

b) 25 percent
c) 0.4 percent
id

d) 6.3 percent
iv

e) 12.5 percent
nd
rI
Fo

72

36
 2019-11-27

n.
io
utb
Q31. What is the probability of such an event?

tri
a) 5 percent

is
b) 25 percent

rd
c) 0.4 percent

no
d) 6.3 percent
e) 12.5 percent

e
us
ic
l
ub
rp
73
fo
ot
N
y.
nl
O
se

Q32. What assumption did you have to make to get this answer?
lU

a) The law of averages

ua

b) Disjoint events
c) Independent events
id

d) Extending the argument (validity)

iv

e) Two exhaustive variables

nd
rI
Fo

74

37
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n.
io
b ut
Q32. What assumption did you have to make to get this answer?

tri
a) The law of averages

is
b) Disjoint events

rd
c) Independent events

no
d) Extending the argument (validity)
e) Two exhaustive variables

e
us
l ic
ub
rp
75
fo
ot
N
y.

The data shown in the histogram represent the performance from another
competitor of Hypersynergy (Booster). Based on this histogram please find (possibly
nl

approximate) summaries that best match the requested summary statistic.

O
se
lU
ua
id
iv
nd
rI
Fo

76

38
 2019-11-27

n.
io
utb
Q33. The mean (xbar) with units: miles/recharge

tri
a) 452

is
b) 402

rd
c) 427

no
d) 502
e) 475

e
us
l ic
ub
rp
77
fo
ot
N
y.
nl
O
se

Q33. The mean (xbar) with units: miles/recharge

lU

a) 452
ua

b) 402
c) 427
id

d) 502
iv

e) 475
nd
rI
Fo

78

39
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n.
io
Questions 34 – 35: Residential Development
A new residential development is being considered in a suburban district of a city.

ut
The question which the city planning committee would like to be answered is how

b
big this residential development should be. They want to commission a survey of

tri
400 people living in that district to know what they think. The district is quite
cosmopolitan and it is assumed that the opinions on such issues are generally

is
shared by adult people of similar age, and gender does not play a part. It is well

rd
known that in that district there are 30% young professionals, 45% mid-age couples
with children and 25% seniors. The market research company came up with a plan

no
to have a sample of total size 400 made up of 120 young professionals, 180 mid-age
couples and 100 seniors chosen as a collection of 3 simple random samples.

e
us
l ic
ub
rp
79
fo
ot
N
y.
nl
O
se

Q34. What is this sampling design called?

lU

a) Simple Random Sample.

ua

b) Cluster Sample.
c) Stratified Random Sample.
id

d) Systematic Sample.
iv

e) 3-Stage Sample.
nd
rI
Fo

80

40
 2019-11-27

n.
io
but
Q34. What is this sampling design called?

tri
a) Simple Random Sample.

is
b) Cluster Sample.

rd
c) Stratified Random Sample.

no
d) Systematic Sample.
e) 3-Stage Sample.

e
us
l ic
ub
rp
81
fo
ot
N
y.
nl
O
se

Q35. It was found that 280 of the 400 people sampled, responded that they were in favour
lU

of a large development. What is the probability that 280 or less number of people
would be in favour of a large development assuming that the developer contends that
¾ th of the people are in favour of this large development? Is the assertion of ¾ th of
ua

the people being in favour justified?

a) 0.0105; the assertion is not justified.
id

b) 0.0412; the assertion is justified.

iv

c) 0.0570; the assertion is justified.

nd

d) 0.5000; the assertion is not justified.

rI

e) None of the above.

Fo

82

41
 2019-11-27

n.
io
but
Q35. It was found that 280 of the 400 people sampled, responded that they were in favour

tri
of a large development. What is the probability that 280 or less number of people
would be in favour of a large development assuming that the developer contends that

is
¾ th of the people are in favour of this large development? Is the assertion of ¾ th of
the people being in favour justified?

rd
a) 0.0105; the assertion is not justified.

no
b) 0.0412; the assertion is justified.
c) 0.0570; the assertion is justified.

e
d) 0.5000; the assertion is not justified.

us
e) None of the above.

l ic
ub
rp
83
fo
ot
N
y.
nl
O
se

Questions 36 – 37: Mean Annual Return

lU

A certain well-managed company-stock is supposed to gives a mean annual return of

7.50% with a standard deviation of 1.5% and it is supposed to be normally distributed. A
ua

stock-broker claims that actually he got a return of more than 7.80%. So, you asked him:
“What sample size did you take?” He responded by telling you that he observed the
id

stock for 64 randomly chosen weeks.

iv
nd
rI
Fo

84

42
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io
b ut
Q36. Assuming you trust the broker, what is the probability that one can get a mean return of

tri
7.80% or more? Is the assertion about the mean return justified?

is
a) 0.0548; on the basis of the evidence, the assertion about the mean return is justified.

rd
b) 0.5662; on the basis of the evidence, the assertion about the mean return is justified.
c) 0.4338; on the basis of the evidence, the assertion about the mean return is justified.

no
d) 0.9452; on the basis of the evidence, the assertion about the mean return is not justified.

e
e) 0.0473; on the basis of the evidence, the assertion about the mean return is not justified.

us
l ic
ub
rp
85
fo
ot
N
y.
nl
O
se

Q36. Assuming you trust the broker, what is the probability that one can get a mean return of
lU

7.80% or more? Is the assertion about the mean return justified?

a) 0.0548; on the basis of the evidence, the assertion about the mean return is justified.
ua

b) 0.5662; on the basis of the evidence, the assertion about the mean return is justified.
id

c) 0.4338; on the basis of the evidence, the assertion about the mean return is justified.
iv

d) 0.9452; on the basis of the evidence, the assertion about the mean return is not justified.
nd

e) 0.0473; on the basis of the evidence, the assertion about the mean return is not justified.
rI
Fo

86

43
 2019-11-27

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io
b ut
tri
Q37. To dig a little deeper, you asked him: “But the population standard deviation is rarely known. Did

is
you actually calculate the sample standard deviation?” He said he had in fact calculated the
sample standard deviation and it was 1.10%. In that case, answer Q36 with this new knowledge.

rd
a) 0.0146; on the basis of the evidence, the assertion about the mean return is not justified.

no
b) 0.5899; on the basis of the evidence, the assertion about the mean return is justified.
c) 0.9835; on the basis of the evidence, the assertion about the mean return is justified.

e
d) 0.4101; on the basis of the evidence, the assertion about the mean return is not justified.

us
e) 0.9854; on the basis of the evidence, the assertion about the mean return is justified.

l ic
ub
rp
87
fo
ot
N
y.
nl
O
se
lU

Q37. To dig a little deeper, you asked him: “But the population standard deviation is rarely known. Did
you actually calculate the sample standard deviation?” He said he had in fact calculated the
ua

sample standard deviation and it was 1.10%. In that case, answer Q36 with this new knowledge.
a) 0.0146; on the basis of the evidence, the assertion about the mean return is not justified.
id

b) 0.5899; on the basis of the evidence, the assertion about the mean return is justified.
iv
nd

c) 0.9835; on the basis of the evidence, the assertion about the mean return is justified.
d) 0.4101; on the basis of the evidence, the assertion about the mean return is not justified.
rI

e) 0.9854; on the basis of the evidence, the assertion about the mean return is justified.
Fo

88

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io
Questions 38 – 42: LED Light

ut
The life of a newly developed LED light has unknown

b
distribution with an assumed mean value of 20,000 hours

tri
and standard deviation of 2,500 hours.

is
rd
no
e
us
l ic
ub
rp
89
fo
ot
N
y.
nl
O
se

Q38. If a sample of 100 LED light bulbs is taken, what is the probability that the mean
lU

life will be less than 19500 hours?

a) 0.052
ua

b) 0.0228
id

c) 0.9772
iv

d) 0.948
nd

e) None of the above

rI
Fo

90

45
 2019-11-27

n.
io
but
Q38. If a sample of 100 LED light bulbs is taken, what is the probability that the mean

tri
life will be less than 19500 hours?

is
a) 0.052

rd
b) 0.0228

no
c) 0.9772
d) 0.948

e
e) None of the above

us
l ic
ub
rp
91
fo
ot
N
y.
nl
O
se

Q39. Calculate the interval in which the sample mean for the sample in Q38 will lie with
lU

a probability of 95%.
a) 19,589 hrs to 20,411 hrs
ua

b) 19,510 hrs to 20,490 hrs

id

c) 16,800 hrs to 23,200 hrs

iv

d) 15,888 hrs to 24,112 hrs

nd

e) 15,100 hrs to 24,900 hrs

rI
Fo

92

46
 2019-11-27

n.
io
b ut
tri
is
Q39. Calculate the interval in which the sample mean for the sample in Q38 will lie with
a probability of 95%.

rd
a) 19,589 hrs to 20,411 hrs

no
b) 19,510 hrs to 20,490 hrs
c) 16,800 hrs to 23,200 hrs

e
d) 15,888 hrs to 24,112 hrs

us
e) 15,100 hrs to 24,900 hrs

l ic
ub
rp
93
fo
ot
N
y.
nl
O
se

Q40. After testing it was found that the life of this newly developed LED light bulb, brand
lU

‘A’ was, in fact, normally distributed with a standard deviation of 2000 hrs with a
mean life of 19,750 hrs. What is the probability that if a sample of size 25 was
ua

taken, the sample mean would be more than 20,450 hrs?

a) 0.0062
id

b) 0.0228
iv

c) 0.0735
nd

d) 0.0401
rI

e) 0.1359
Fo

94

47
 2019-11-27

n.
io
b ut
tri
Q40. After testing it was found that the life of this newly developed LED light bulb, brand

is
‘A’ was, in fact, normally distributed with a standard deviation of 2000 hrs with a
mean life of 19,750 hrs. What is the probability that if a sample of size 25 was

rd
taken, the sample mean would be more than 20,450 hrs?
a) 0.0062

no
b) 0.0228

e
c) 0.0735

us
d) 0.0401
e) 0.1359

l ic
ub
rp
95
fo
ot
N
y.
nl
O
se

Q41. With the data given in Q40, what would be the probability that the life of an
lU

individual LED light bulb will be more than 20,450 hrs?

a) 0.0464
ua

b) 0.1359
id

c) 0.0228
iv

d) 0.3632
nd

e) 0.3250
rI
Fo

96

48
 2019-11-27

n.
io
b ut
Q41. With the data given in Q40, what would be the probability that the life of an

tri
individual LED light bulb will be more than 20,450 hrs?

is
a) 0.0464

rd
b) 0.1359
c) 0.0228

no
d) 0.3632

e
e) 0.3250

us
l ic
ub
rp
97
fo
ot
N
y.
nl
O
se

Q42. Brand ‘A’ LED light bulbs have their mean life and standard deviation as specified in Q41.
lU

Another brand ‘B’ LED light bulb has a mean life of 20,000 hrs with a standard deviation
of 2500 hrs and both these light bulbs have their life-span distributed normally. If two
samples of size 25 each are taken, calculate the two probabilities that the respective
ua

sample means for brand ‘A’ and brand ‘B’ would be more than 19,500 hrs.
id

a) 0.2660 and 0.1587

b) 0.2660 and 0.8413
iv
nd

c) 0.7340 and 0.1587

d) 0.7340 and 0.8413
rI

e) 0.1587 and 0.2660

Fo

98

49
 2019-11-27

n.
io
b ut
tri
is
rd
Q42. Brand ‘A’ LED light bulbs have their mean life and standard deviation as specified in Q41.
Another brand ‘B’ LED light bulb has a mean life of 20,000 hrs with a standard deviation of
2500 hrs and both these light bulbs have their life-span distributed normally. If two samples

no
of size 25 each are taken, calculate the two probabilities that the respective sample means
for brand ‘A’ and brand ‘B’ would be more than 19,500 hrs.
a) 0.2660 and 0.1587

e
us
b) 0.2660 and 0.8413
c) 0.7340 and 0.1587

ic
d) 0.7340 and 0.8413

l
e) 0.1587 and 0.2660
ub
rp
99
fo
ot
N
y.
nl
O
se

43--44: Age of undergraduate students

Questions 43
lU

The age of undergraduate students at the University of Ottawa is normally distributed

with a mean of 21 years and a standard deviation of 1.5 years. There are 35,000
ua

undergraduate students in the University. Answer questions 43 and 44.

id
iv
nd
rI
Fo

100

50
 2019-11-27

n.
io
but
Q43. How many undergraduate students are between 19 and 22 years old?

tri
a) 17,550

is
b) 22,970

rd
c) 23,790

no
d) 28,600
e) Cannot be determined

e
us
l ic
ub
rp
101
fo
ot
N
y.
nl
O
se

Q43. How many undergraduate students are between 19 and 22 years old?
lU

a) 17,550
ua

b) 22,970
c) 23,790
id

d) 28,600
iv

e) Cannot be determined
nd
rI
Fo

102

51
 2019-11-27

n.
io
utb
Q44. What is the probability that a randomly selected undergraduate student will be

tri
under 20 years old?

is
a) 0.2525

rd
b) 0.0912
c) 0.5000

no
d) 0.1587

e
e) 0.7475

us
l ic
ub
rp
103
fo
ot
N
y.
nl
O
se

Q44. What is the probability that a randomly selected undergraduate student will be
lU

under 20 years old?

a) 0.2525
ua

b) 0.0912
id

c) 0.5000
iv

d) 0.1587
nd

e) 0.7475
rI
Fo

104

52
 2019-11-27

Questions 45
45--46: Scatter Plot

n.
Below is a scatter plot of y vs x. Use it to answer questions 45 and 46

io
ut
b
tri
is
rd
no
e
us
l ic
ub
rp
105
fo
ot
N
y.
nl
O
se

Q45. What can you say about the direction, form and strength of the association?
lU

a) Negative, non-linear, strong

ua

b) Negative, linear, weak

c) Negative, linear, strong
id

d) Positive, linear, strong

iv

d) Positive, linear, weak

nd
rI
Fo

106

53
 2019-11-27

n.
io
utb
Q45. What can you say about the direction, form and strength of the association?

tri
a) Negative, non-linear, strong

is
b) Negative, linear, weak

rd
c) Negative, linear, strong

no
d) Positive, linear, strong
d) Positive, linear, weak

e
us
l ic
ub
rp
107
fo
ot
N
y.
nl
O
se

Q46. What else does the scatterplot reveal about the data?
lU

a) x negatively influences y
ua

b) y negatively influences x
c) There is an outlier
id

d) x and y are independent

iv

d) x and y are mutually exclusive

nd
rI
Fo

108

54
 2019-11-27

n.
io
utb
Q46. What else does the scatterplot reveal about the data?

tri
a) x negatively influences y

is
b) y negatively influences x

rd
c) There is an outlier

no
d) x and y are independent
d) x and y are mutually exclusive

e
us
l ic
ub
rp
109
fo
ot
N
y.
nl
O

Questions 47 – 50: Asia’s Glaciers.

The Himalayas and adjacent mountain ranges are the source of several major
se

rivers. The water in the rivers comes from two sources: rainfall and glacial melt
water. Rainfall varies from year to year and the coefficient of variation (CoV =
lU

standard deviation/mean) of the rainfall in the basins of the four largest rivers
are: Ganges 0.12, Brahmaputra 0.11, Indus 0.40 and Aral 0.29. By contrast,
ua

glacial melt water has a coefficient of variation of only 0.04 in each of these
four river basins. (Hamish D. Pritchard Asia’s glaciers are a regionally important
id

buffer against drought, Nature 2017, Vol 545, pp. 169-174,

doi:10.1038/nature22062.) Assume the amount of rainfall and glacial melt
iv

water are Normally distributed.

nd
rI
Fo

110

55
 2019-11-27

n.
io
b ut
Q47. What is the probability of the rainfall in the Aral river basin being less than 40% below

tri
average?

is
a) In order to answer this question, we need to know the average rainfall in the Aral river basin

rd
b) Between 0.0 and 0.1
c) Between 0.1 and 0.2

no
d) Between 0.2 and 0.3

e
e) Between 0.3 and 0.4

us
l ic
ub
rp
111
fo
ot
N
y.
nl
O
se

Q47. What is the probability of the rainfall in the Aral river basin being less than 40% below
lU

average?
a) In order to answer this question, we need to know the average rainfall in the Aral river basin
ua

b) Between 0.0 and 0.1

id

c) Between 0.1 and 0.2

iv

d) Between 0.2 and 0.3

nd

e) Between 0.3 and 0.4

rI
Fo

112

56
 2019-11-27

n.
io
utb
Q48. Which river basin has the highest probability of rainfall less than 1.3 standard

tri
deviations below average?

is
a) Ganges

rd
b) Brahmaputra
c) Indus

no
d) Aral

e
e) The probability is the same for each river

us
l ic
ub
rp
113
fo
ot
N
y.
nl
O
se

Q48. Which river basin has the highest probability of rainfall less than 1.3 standard
lU

deviations below average?

a) Ganges
ua

b) Brahmaputra
id

c) Indus
iv

d) Aral
nd

e) The probability is the same for each river

rI
Fo

114

57
 2019-11-27

n.
io
b ut
Q49. In the Indus river basin, the average rainfall is 396 km3, and the average glacial melt

tri
water is 10.6 km3. What is the coefficient of variation of the total (rainfall plus glacial
melt) water in the Indus river basin assuming a correlation coefficient of 0.54 between

is
rainfall and glacial melt water? You can use the other information above in “Asia’s
Asia’s
Glaciers”
Glaciers if you need it.

rd
a) 0.38

no
b) 0.39
c) 0.41

e
d) 0.42

us
e) It is not possible to answer this question with the information given.

l ic
ub
rp
115
fo
ot
N
y.
nl
O
se

Q49. In the Indus river basin, the average rainfall is 396 km3, and the average glacial melt
lU

water is 10.6 km3. What is the coefficient of variation of the total (rainfall plus glacial
melt) water in the Indus river basin assuming a correlation coefficient of 0.54 between
rainfall and glacial melt water? You can use the other information above in “Asia’s
Asia’s
ua

Glaciers”
Glaciers if you need it.
id

a) 0.38
b) 0.39
iv
nd

c) 0.41
d) 0.42
rI

e) It is not possible to answer this question with the information given.

Fo

116

58
 2019-11-27

n.
io
b ut
Q50. As in Q49, in the Indus river basin, the average glacial melt water is 10.6 km3 and

tri
the CoV is 0.04 as in the original information given in “Asia’s
Asia’s Glaciers”.
Glaciers What is
the interquartile range (IQR) of the glacial melt water in the Indus river basin as a

is
percentage of the mean?

rd
a) The IQR is between 3% and 4% of the mean glacial melt water

no
b) The IQR is between 4% and 5% of the mean glacial melt water
c) The IQR is between 5% and 6% of the mean glacial melt water

e
d) The IQR is between 6% and 7% of the mean glacial melt water

us
e) It is not possible to calculate the IQR from the information given

l ic
ub
rp
117
fo
ot
N
y.
nl
O
se

Q50. As in Q49, in the Indus river basin, the average glacial melt water is 10.6 km3 and
lU

the CoV is 0.04 as in the original information given in “Asia’s

Asia’s Glaciers”.
Glaciers What is
the interquartile range (IQR) of the glacial melt water in the Indus river basin as a
ua

percentage of the mean?

a) The IQR is between 3% and 4% of the mean glacial melt water
id

b) The IQR is between 4% and 5% of the mean glacial melt water

iv

c) The IQR is between 5% and 6% of the mean glacial melt water

nd

d) The IQR is between 6% and 7% of the mean glacial melt water

rI

e) It is not possible to calculate the IQR from the information given

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Questions 51
51--53: Vehicle service
The probabilities and the number of vehicles lined up at a mechanic at

io
opening time (7:30 a.m.) for service are:

b ut
Number Probability

tri
1 0.25

is
2 0.20

rd
3 0.30
4 0.25

no
Answer questions 51-53

e
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Q51. On a typical day, how many vehicles should the mechanic expect to be lined up at
lU

opening?
a) 2.50
ua

b) 2.55
c) 11.00
id

d) 40.00
iv

e) 7.75
nd
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io
b ut
Q51. On a typical day, how many vehicles should the mechanic expect to be lined up at

tri
opening?

is
a) 2.50
b) 2.55

rd
c) 11.00
d) 40.00

no
e) 7.75

e
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Q52. On a typical day, what is the standard deviation of the number of vehicles that the
lU

mechanic can expect to be lined up at opening?

a) 1.12
ua

b) 1.25
id

c) 1.73
iv

d) 3.01
nd

e) 2.78
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io
but
Q52. On a typical day, what is the standard deviation of the number of vehicles that the

tri
mechanic can expect to be lined up at opening?

is
a) 1.12

rd
b) 1.25
c) 1.73

no
d) 3.01

e
e) 2.78

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Q53. What’s the probability that at least two vehicles will be lined up at opening?
lU

a) 0.55
ua

b) 0.45
c) 0.25
id

d) 0.75
iv

e) Not possible to compute

nd
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io
but
Q53. What’s the probability that at least two vehicles will be lined up at opening?

tri
a) 0.55

is
b) 0.45

rd
c) 0.25

no
d) 0.75
e) Not possible to compute

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Q54. Judging from recent experience, 5 percent of the computer keyboards produced by
lU

an automatic, high-speed machine are defective. What is the probability that out of six
keyboards selected at random, exactly two keyboards will be defective? (Hint: Use a
ua

binomial distribution)
a) 0.969
id

b) 0.002
iv

c) 0.031
d) 0.998
nd

e) None of the choices are correct

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io
but
Q54. Judging from recent experience, 5 percent of the computer keyboards produced by

tri
an automatic, high-speed machine are defective. What is the probability that out of six
keyboards selected at random, exactly two keyboards will be defective? (Hint: Use a

is
binomial distribution)

rd
a) 0.969
b) 0.002

no
c) 0.031
d) 0.998

e
e) None of the choices are correct

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lU

Questions 5555--57. Price-

Price-to-
to-earnings ratios of publicly traded companies
A financial advising company has determined that the price-to-earnings
ua

ratios for 20 randomly selected publicly traded companies range between

1.0 and 5.0 Given that the price-to-earnings ratios are uniformly distributed,
id

answer questions 55-57.

iv
nd
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io
utb
Q55. What is the average price-to-earnings ratio?

tri
a) 1.0
b) 2.0

is
c) 3.0

rd
d) 4.0
e) None of the choices are correct

no
e
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Q55. What is the average price-to-earnings ratio?

lU

a) 1.0
b) 2.0
ua

c) 3.0
d) 4.0
id

e) None of the choices are correct

iv
nd
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io
utb
Q56. How many of the randomly selected publicly traded companies have price-to-

tri
earnings ratios of between 1.5 and 3.5?

is
a) 10

rd
b) 12
c) 15

no
d) 17

e
e) 5

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Q56. How many of the randomly selected publicly traded companies have price-to-
lU

earnings ratios of between 1.5 and 3.5?

a) 10
ua

b) 12
id

c) 15
iv

d) 17
nd

e) 5
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io
b ut
Q57. What is the standard deviation of the distribution of price-to-earnings ratios for the

tri
publicly traded companies?

is
a) 1.33

rd
b) 1.15
c) 0.58

no
d) 0.33

e
e) 0.11

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Q57. What is the standard deviation of the distribution of price-to-earnings ratios for the
lU

publicly traded companies?

a) 1.33
ua

b) 1.15
id

c) 0.58
iv

d) 0.33
nd

e) 0.11
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io
ut
b
Q58. Which of the following is NOT true regarding the normal distribution?

tri
a) Mean, median and mode are all equal
b) It has a single peak

is
c) It is symmetrical

rd
e) The points of the curve meet the X-axis at z = -3 and z = 3
d) None of the choices are correct

no
e
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Q58. Which of the following is NOT true regarding the normal distribution?
lU

a) Mean, median and mode are all equal

b) It has a single peak
ua

c) It is symmetrical
e) The points of the curve meet the X-axis at z = -3 and z = 3
id

d) None of the choices are correct

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nd
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b ut
Q59. A province-wide sample survey is to be made. First, the province is subdivided into

tri
counties. Five counties are selected at random and further sampling is
concentrated on these five counties. What type of sampling is this?

is
a) Simple random

rd
b) Systematic
c) Cluster

no
d) Stratified
e) None of the choices are correct

e
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Q59. A province-wide sample survey is to be made. First, the province is subdivided into
lU

counties. Five counties are selected at random and further sampling is

concentrated on these five counties. What type of sampling is this?
ua

a) Simple random
b) Systematic
id

c) Cluster
d) Stratified
iv

e) None of the choices are correct

nd
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io
ut
b
Q60. 60% of people in North America wear glasses. In a survey of 49 people, what is

tri
the probability that less than 30 people wear glasses?
a) 0.5694

is
b) 0.4306

rd
c) 0.8897
d) 0.2847

no
e) 0.2153

e
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nl
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se

Q60. 60% of people in North America wear glasses. In a survey of 49 people, what is
lU

the probability that less than 30 people wear glasses?

a) 0.5694
ua

b) 0.4306
c) 0.8897
id

d) 0.2847
e) 0.2153
iv
nd
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70