Test Bank For Business Statistics For Contemporary Decision Making 2nd Canadian Edition

Test Bank for Business Statistics for Contemporary Decision Making, 2nd Canadian Edition
Test Bank for Business Statistics for Contemporary

Decision Making, 2nd Canadian Edition
To download the complete and accurate content document, go to:

https://testbankbell.com/download/test-bank-for-business-statistics-for-contemporary-
decision-making-2nd-canadian-edition/
Visit TestBankBell.com to get complete for all chapters

CHAPTER 6
CONTINUOUS DISTRIBUTIONS
CHAPTER LEARNING OBJECTIVES
1. Solve for probabilities in a continuous uniform distribution. Probably the simplest of

these distributions is the uniform distribution, sometimes referred to as the rectangular
distribution. What are the key concepts behind the uniform distribution and its uses? The
uniform distribution is determined from a probability density function that contains equal values
along some interval between the points a and b. Basically, the height of the curve is the same
everywhere between these two points. Probabilities are determined by calculating the portion of
the rectangle between the two points a and b that is being considered.
2. Solve for probabilities in a normal distribution using z scores and for the mean, the
standard deviation, or a value of x in a normal distribution when given information about
the area under the normal curve. The most widely used of all distributions is the normal
distribution. Many phenomena are normally distributed, including characteristics of most
machine-produced parts; many measurements of the biological and natural environment; and
many human characteristics such as height, mass, IQ, and achievement test scores. The
normal curve is continuous, symmetrical, unimodal, and asymptotic to the axis; actually, it is a
family of curves. The parameters necessary to describe a normal distribution are the mean and
the standard deviation. For convenience, data being analyzed by the normal curve should be
standardized by using the mean and the standard deviation to compute z scores. A z score is
the distance that an x value is from the mean, µ, in units of standard deviations. With the z score
of an x value, the probability of that value occurring by chance from a given normal distribution
can be determined by using a table of z scores and their associated probabilities.
3. Solve problems from the discrete binomial distribution using the continuous normal
distribution and correcting for continuity. The normal distribution can be used to work
certain types of binomial distribution problems. Doing so requires converting the n and p values
of the binomial distribution to µ and σ of the normal distribution. When worked by using the
normal distribution, the binomial distribution solution is only an approximation. If the values of µ
± 3σ are within a range from 0 to n, the approximation is reasonably accurate. Adjusting for the
fact that a discrete distribution problem is being worked using a continuous distribution requires
a correction for continuity. The correction for continuity involves adding 0.50 to or subtracting
0.50 from the x value being analyzed. This correction usually improves the normal curve
approximation.
4. Solve for probabilities in an exponential distribution and contrast the exponential

distribution to the discrete Poisson distribution. Another continuous distribution is the
exponential distribution. It complements the discrete Poisson distribution. The exponential
distribution is used to compute the probabilities of times between random occurrences. The
exponential distribution is a family of distributions described by the single parameter λ. The
distribution is skewed to the right and always has its highest value at x = 0.
Copyright © 2014 John Wiley & Sons Canada, Ltd. Unauthorized copying, distribution, or transmission of this page is prohibited
Continuous Distributions 6-2
TRUE-FALSE STATEMENTS
1. A uniform continuous distribution is also referred to as a rectangular distribution.
Answer: True
Difficulty: Easy
Learning Objective: Solve for probabilities in a continuous uniform distribution.
Section Reference: 6.1 Uniform Distribution
2. The height of the rectangle depicting a uniform distribution is the probability of each outcome
and it is the same for all of the possible outcomes.
Answer: False
Difficulty: Medium
3. The area of the rectangle depicting a uniform distribution is always equal to one.
Answer: True
Difficulty: Medium
4. Many human characteristics, such as height and weight, and many variable measurements,
such as household insurance and cost per square metre of rental space, are normally
distributed.
Answer: True
Difficulty: Medium
Learning Objective: Solve for probabilities in a normal distribution using z scores and for the
mean, the standard deviation, or a value of x in a normal distribution when given information
about the area under the normal curve.
Section Reference: 6.2 Normal Distribution
5. Normal distribution is a skewed distribution with its tails extending to infinity on either side of
the mean.
Answer: False
Difficulty: Medium
6- 3 Test Bank for Business Statistics, Second Canadian Edition
6. Since a normal distribution curve extends from minus infinity to plus infinity, the area under
the curve is infinity.
Answer: False
Difficulty: Medium
7. A z score is the number of standard deviations that a value of a random variable is above or
below the mean.
Answer: True
Difficulty: Medium
8. A normal distribution with a mean of zero and a standard deviation of 1 is called a null
distribution.
Answer: False
Difficulty: Medium
9. A standard normal distribution has a mean of zero and a standard deviation of one.
Answer: True
Difficulty: Easy
10. The standard normal distribution is also called a finite distribution because its mean is zero
and standard deviation one, always.
Answer: False
Difficulty: Medium
11. In a standard normal distribution, if the area under curve to the right of a z value is 0.10,
then the area to the left of the same z value is –0.10.
Answer: False
Difficulty: Medium
12. Binomial distributions in which the sample sizes are large may be approximated by a
Poisson distribution.
Answer: False
Problems
Difficulty: Medium
Learning Objective: Solve problems from the discrete binomial distribution using the continuous
normal distribution and correcting for continuity.
Section Reference: 6.3 Using the Normal Curve to Approximate Binomial Distribution Problems
13. A correction for continuity must be made when approximating the binomial distribution
problems using a normal distribution.
Answer: True
Difficulty: Medium
14. If arrivals at a bank followed a Poisson distribution, then the time between arrivals would
follow a binomial distribution.
Answer: False
Difficulty: Hard
Learning Objective: Solve for probabilities in an exponential distribution and contrast the
exponential distribution to the discrete Poisson distribution.
Section Reference: 6.4 Exponential Distribution
15. For an exponential distribution, the mean is always equal to its variance.
Answer: False
Difficulty: Hard
MULTIPLE CHOICE QUESTIONS
16. If x is uniformly distributed over the interval 8 to 12, inclusively (8  x  12), then the height
of this distribution, f(x), is ___.
a) 1/8
b) 1/4
c) 1/12
d) 1/20
e) 1/24
Answer: b
Difficulty: Easy
17. If x is uniformly distributed over the interval 8 to 12, inclusively (8  x  12), then the mean of
this distribution is ___.
a) 10
b) 20
c) 5
d) 0
e) unknown
Answer: a
Difficulty: Medium
18. If x is uniformly distributed over the interval 8 to 12, inclusively (8  x  12), then the
standard deviation of this distribution is ___.
a) 4.00
b) 1.33
c) 1.15
d) 2.00
e) 1.00
Answer: c
Difficulty: Medium
probability, P(9  x  11), is ___.
a) 0.250
b) 0.500
c) 0.333
d) 0.750
e) 1.000
Answer: b
Difficulty: Medium
probability, P(10.0  x  11.5), is ___.
a) 0.250
b) 0.333
c) 0.375
d) 0.500
e) 0.750
Answer: c
Difficulty: Medium
probability, P(13  x  15), is ___.
a) 0.250
b) 0.500
c) 0.375
d) 0.000
e) 1.000
Answer: d
Difficulty: Medium
22. If x is uniformly distributed over the interval 8 to 12, inclusively (8  x  12), then P(x < 7) is
___.
a) 0.500
b) 0.000
c) 0.375
d) 0.250
e) 1.000
Answer: b
Difficulty: Medium
23. If x is uniformly distributed over the interval 8 to 12, inclusively (8  x  12), then P(x  11) is
___.
a) 0.750
b) 0.000
c) 0.333
d) 0.500
e) 1.000
Answer: a
Difficulty: Medium
24. If x is uniformly distributed over the interval 8 to 12, inclusively (8  x  12), then P(x  10) is
___.
a) 0.750
b) 0.000
c) 0.333
d) 0.500
e) 0.900
Answer: d
Difficulty: Medium
25. If a continuous random variable x is uniformly distributed over the interval 8 to 12,
inclusively, then P(x = exactly 10) is ___.
a) 0.750
b) 0.000
c) 0.333
d) 0.500
e) 0.900
Answer: b
Difficulty: Hard
26. If x, the time (in minutes) to complete an oil change job at a certain auto service station, is
uniformly distributed over the interval 20 to 30, inclusively (20  x  30), then the height of this
distribution, f(x), is ___.
a) 1/10
b) 1/20
c) 1/30
d) 12/50
e) 1/60
Answer: a
Difficulty: Easy
uniformly distributed over the interval 20 to 30, inclusively (20  x  30), then the mean of this
distribution is ___.
a) 50
b) 25
c) 10
d) 15
e) 5
Answer: b
Difficulty: Medium
uniformly distributed over the interval 20 to 30, inclusively (20  x  30), then the standard
deviation of this distribution is ___.
a) unknown
b) 8.33
c) 0.833
d) 2.89
e) 1.89
Answer: d
Difficulty: Medium
Continuous Distributions 6 - 10
uniformly distributed over the interval 20 to 30, inclusively (20  x  30), then the probability that
an oil change job is completed in 25 to 28 minutes, inclusively, i.e., P(25  x  28) is ___.
a) 0.250
b) 0.500
c) 0.300
d) 0.750
e) 81.000
Answer: c
Difficulty: Medium
30. If x, the time (in minutes) to complete an change job at a certain auto service station, is
an oil change job is completed in 21.75 to 24.25 minutes, inclusively, i.e., P(21.75  x  24.25)
is ___.
a) 0.250
b) 0.333
c) 0.375
d) 0.000
e) 1.000
Answer: a
Difficulty: Medium
an oil change job is completed in 33 to 35 minutes, inclusively, i.e., P(33  x  35) is ___.
a) 0.5080
b) 0.000
c) 0.375
d) 0.200
e) 1.000
Answer: b
Difficulty: Medium
an oil change job is completed in less than 17 minutes, i.e., P(x < 17) is ___.
a) 0.500
b) 0.300
c) 0.000
d) 0.250
e) 1.000
Answer: c
Difficulty: Medium
33. If x, the time (in minutes) to complete an oil change job at a certain auto station, is uniformly
distributed over the interval 20 to 30, inclusively (20  x  30), then the probability that an oil
change job is completed in less than or equal to 22 minutes, i.e., P(x  22) is ___.
a) 0.200
b) 0.300
c) 0.000
d) 0.250
e) 1.000
Answer: a
Difficulty: Medium
an oil change job will be completed 24 minutes or more, i.e., P(x  24) is ___.
a) 0.100
b) 0.000
c) 0.333
d) 0.600
e) 1.000
Answer: d
Difficulty: Medium
35. The normal distribution is an example of ___.

a) a discrete distribution
b) a continuous distribution
c) a bimodal distribution
d) an exponential distribution
e) a binomial distribution
Answer: b
Difficulty: Easy
36. The total area underneath any normal curve is equal to ___.
a) the mean
b) one
c) the variance
d) the coefficient of variation
e) the standard deviation
Answer: b
Difficulty: Easy
37. The area to the left of the mean in any normal distribution is equal to ___.
a) the mean
b) 1
c) the variance
d) 0.5
e) –0.5
Answer: d
Difficulty: Easy
38. A standard normal distribution has the following characteristics:

a) the mean and the variance are both equal to 1.
b) the mean and the variance are both equal to 0.
c) the mean is equal to the variance.
d) the mean is equal to 0 and the variance is equal to 1.
e) the mean is equal to the standard deviation.
Answer: d
Difficulty: Medium
39. If x is a normal random variable with mean 80 and standard deviation 5, the z score for x =
88 is ___.
a) 1.8
b) –1.8
c) 1.6
d) –1.6
e) 8.0
Answer: c
Difficulty: Medium
40. Suppose x is a normal random variable with mean 60 and standard deviation 2. A z score
was calculated for a number, and the z score is 3.4. What is x?
a) 63.4
b) 56.6
c) 68.6
d) 53.2
e) 66.8
Answer: e
Difficulty: Medium
41. Suppose x is a normal random variable with mean 60 and standard deviation 2. A z score
was calculated for a number, and the z score is –1.3. What is x?
a) 58.7
b) 61.3
c) 62.6
d) 57.4
e) 54.7
Answer: d
Difficulty: Medium
42. Let z be a normal random variable with mean 0 and standard deviation 1. What is P(z <
1.3)?
a) 0.4032
b) 0.9032
c) 0.0968
d) 0.3485
e) 0. 5485
Answer: b
Difficulty: Medium
43. Let z be a normal random variable with mean 0 and standard deviation 1. What is P(1.3 < z
< 2.3)?
a) 0.4032
b) 0.9032
c) 0.4893
d) 0.0861
e) 0.0086
Answer: d
Difficulty: Medium
44. Let z be a normal random variable with mean 0 and standard deviation 1. What is P(z >
2.4)?
a) 0.4918
b) 0.9918
c) 0.0082
d) 0.4793
e) 0.0820
Answer: c
Difficulty: Easy
45. Let z be a normal random variable with mean 0 and standard deviation 1. What is P(z < –
2.1)?
a) 0.4821
b) –0.4821
c) 0.9821
d) 0.0179
e) –0.0179
Answer: d
Difficulty: Medium
46. Let z be a normal random variable with mean 0 and standard deviation 1. What is P(z > –
1.1)?
a) 0.36432
b) 0.8643
c) 0.1357
d) –0.1357
e) –0.8643
Answer: b
Difficulty: Medium
47. Let z be a normal random variable with mean 0 and standard deviation 1. What is P(–2.25 <
z < –1.1)?
a) 0.3643
b) 0.8643
c) 0.1235
d) 0.4878
e) 0.5000
Answer: c
Difficulty: Medium
48. Let z be a normal random variable with mean 0 and standard deviation 1. The 50th
percentile of z is ___.
a) 0.6700
b) –1.254
c) 0.0000
d) 1.2800
e) 0.5000
Answer: c
Difficulty: Easy
a) 0.6700
b) –1.254
c) 0.0000
d) 1.2800
e) 0.5000
Answer: a
Difficulty: Medium
a) 1.645
b) –1.254
c) 1.960
d) 1.280
e) 1.650
Answer: d
Difficulty: Medium
51. A z score is the number of ___ that a value is from the mean.
a) variances
b) standard deviations
c) units
d) miles
e) minutes
Answer: b
Difficulty: Easy
52. Within a range of z scores from –1 to +1, you can expect to find ___ per cent of the values
in a normal distribution.
a) 95
b) 99
c) 68
d) 34
e) 100
Answer: c
Difficulty: Easy
53. Within a range of z scores from –2 to +2, you can expect to find ___ per cent of the values
in a normal distribution.
a) 95
b) 99
c) 68
d) 34
e) 100
Answer: a
Difficulty: Easy
54. The expected (mean) life of a particular type of light bulb is 1,000 hours with a standard
deviation of 50 hours. The life of this bulb is normally distributed. What is the probability that a
randomly selected bulb would last longer than 1150 hours?
a) 0.4987
b) 0.9987
c) 0.0013
d) 0.5013
e) 0.5513
Answer: c
Difficulty: Medium
randomly selected bulb would last fewer than 1100 hours?
a) 0.4772
b) 0.9772
c) 0.0228
d) 0.5228
e) 0.5513
Answer: b
Difficulty: Medium
randomly selected bulb would last fewer than 940 hours?
a) 0.3849
b) 0.8849
c) 0.1151
d) 0.6151
e) 0.6563
Answer: c
Difficulty: Medium
57. Suppose you are working with a data set that is normally distributed with a mean of 400 and
a standard deviation of 20. Determine the value of x such that 60% of the values are greater
than x.
a) 404.5
b) 395.5
c) 405.0
d) 395.0
e) 415.0
Answer: d
Difficulty: Hard
58. Sure Stone Tire Company has established that the useful life of a particular brand of its
automobile tires is normally distributed with a mean of 40,000 kilometres and a standard
deviation of 5000 kilometres. What is the probability that a randomly selected tire of this brand
has a life of at most 30,000 kilometres?
a) 0.5000
b) 0.4772
c) 0.0228
d) 0.9772
e) 1.0000
Answer: c
Difficulty: Hard
has a life of at least 50,000 kilometres?

a) 0.0228
b) 0.9772
c) 0.5000
d) 0.4772
e) 1.0000
Answer: a
Difficulty: Hard
has a life between 30,000 and 50,000 kilometres?
a) 0.5000
b) 0.4772
c) 0.9544
d) 0.9772
e) 1.0000
Answer: c
Difficulty: Hard
61. The net profit from a certain investment is normally distributed with a mean of $10,000 and a
standard deviation of $5,000. The probability that the investor will not have a net loss is ___.
a) 0.4772
b) 0.0228
c) 0.9544
d) 0.9772
e) 1.0000
Answer: d
Difficulty: Hard
62. The net profit of an investment is normally distributed with a mean of $10,000 and a
standard deviation of $5,000. The probability that the investor’s net gain will be at least $5,000
is ___.
a) 0.1859
b) 0.3413
c) 0.8413
d) 0.4967
e) 0.5000
Answer: c
Difficulty: Hard
63. Completion time (from start to finish) of a building remodelling project is normally distributed
with a mean of 200 work-days and a standard deviation of 10 work-days. The probability that
the project will be completed within 185 work-days is ___.
a) 0.0668
b) 0.4332
c) 0.5000
d) 0.9332
e) 0.9950
Answer: a
Difficulty: Hard
64. Completion time (from start to finish) of a building remodelling project is normally distributed
with a mean of 200 work-days and a standard deviation of 10 work-days. To be 99% sure that
we will not be late in completing the project, we should request a completion time of ___ work-
days.
a) 211
b) 207
c) 223
d) 200
e) 250
Answer: c
Difficulty: Hard
65. Let x be a binomial random variable with n=20 and p=.8. If we use the normal distribution to
approximate probabilities for this, we would use a mean of ___.
a) 20
b) 16
c) 3.2
d) 8
e) 5
Answer: b
Difficulty: Easy
66. Let x be a binomial random variable with n=20 and p=.8. If we use the normal distribution to
approximate probabilities for this, a correction for continuity should be made. To find the
probability of more than 12 successes, we should find ___.
a) P(x>12.5)
b) P(x>12)
c) P(x>11.5)
d) P(x<11.5)
e) P(x < 12)
Answer: a
Difficulty: Medium
67. The exponential distribution is an example of ___.

a) a discrete distribution
b) a continuous distribution
c) a bimodal distribution
d) a normal distribution
e) a symmetrical distribution
Answer: b
Difficulty: Easy
68. For an exponential distribution with a lambda (λ) equal to 4, the standard deviation is equal
to ___.
a) 4
b) 0.5
c) 0.25
d) 1
e) 16
Answer: c
Difficulty: Medium
69. The average time between phone calls arriving at a call centre is 30 seconds. Assuming that
the time between calls is exponentially distributed, find the probability that more than a minute
elapses between calls.
a) 0.135
b) 0.368
c) 0.865
d) 0.607
e) 0.709
Answer: a
Difficulty: Hard
70. The average time between phone calls arriving at a call centre is 30 seconds. Assuming that
the time between calls is exponentially distributed, find the probability that less than two minutes
elapse between calls.
a) 0.018
b) 0.064
c) 0.936
d) 0.982
e) 1.000
Answer: d
Difficulty: Hard
71. At a certain workstation in an assembly line, the time required to assemble a component is
exponentially distributed with a mean time of 10 minutes. Find the probability that a component
is assembled in 7 minutes or less.
a) 0.349
b) 0.591
c) 0.286
d) 0.714
e) 0.5034
Answer: e
Difficulty: Hard
72. At a certain workstation in an assembly line, the time required to assemble a component is
exponentially distributed with a mean time of 10 minutes. Find the probability that a component
is assembled in 3 to 7 minutes.
a) 0.5034
b) 0.2592
c) 0.2442
d) 0.2942
e) 0.5084
Answer: c
Difficulty: Hard
73. On Saturdays, cars arrive at Sam Schmitt's Scrub and Shine Car Wash at the rate of 6 cars
per fifteen minute interval. The probability that at least 2 minutes will elapse between car arrivals
is ___.
a) 0.0000
b) 0.4493
c) 0.1353
d) 1.0000
e) 1.0225
Answer: b
Difficulty: Hard
74. On Saturdays, cars arrive at Sam Schmitt's Scrub and Shine Car Wash at the rate of 6 cars
per fifteen minute interval. The probability that less than 10 minutes will elapse between car
arrivals is ___.
a) 0.8465
b) 0.9817
c) 0.0183
d) 0.1535
e) 0.2125
Answer: b
Difficulty: Hard
Test Bank for Business Statistics for Contemporary Decision Making, 2nd Canadian Edition
LEGAL NOTICE
Copyright © 2014 by John Wiley & Sons Canada, Ltd. or related companies. All rights
reserved.
The data contained in these files are protected by copyright. This manual is furnished
under licence and may be used only in accordance with the terms of such licence.
The material provided herein may not be downloaded, reproduced, stored in a retrieval
system, modified, made available on a network, used to create derivative works, or
transmitted in any form or by any means, electronic, mechanical, photocopying,
recording, scanning, or otherwise without the prior written permission of John Wiley &
Sons Canada, Ltd.
Visit TestBankBell.com to get complete for all chapters

Test Bank For Business Statistics For Contemporary Decision Making 2nd Canadian Edition

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Test Bank For Business Statistics For Contemporary Decision Making 2nd Canadian Edition

Uploaded by

Copyright:

Available Formats

Test Bank for Business Statistics for Contemporary Decision Making, 2nd Canadian Edition

Test Bank for Business Statistics for Contemporary

To download the complete and accurate content document, go to:

Visit TestBankBell.com to get complete for all chapters

1. Solve for probabilities in a continuous uniform distribution. Probably the simplest of

4. Solve for probabilities in an exponential distribution and contrast the exponential

1. A uniform continuous distribution is also referred to as a rectangular distribution.

MULTIPLE CHOICE QUESTIONS

35. The normal distribution is an example of ___.

38. A standard normal distribution has the following characteristics:

has a life of at least 50,000 kilometres?

67. The exponential distribution is an example of ___.

Visit TestBankBell.com to get complete for all chapters

You might also like