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CHAP 6 Multiple Choice
CHAP 6 Multiple Choice
1. A random variable is a function or rule that assigns a numerical value to each outcome in the sample space of a stochastic
(chance) experiment.
True False
True False
3. The expected value of a discrete random variable E(X) is the sum of all X values weighted by their respective probabilities.
True False
4. A discrete distribution can be described by its probability density function (PDF) or by its cumulative distribution function
(CDF).
True False
True False
6. To describe the number of blemishes per sheet of white bond paper, we would use a discrete uniform distribution.
True False
7. The outcomes for the sum of two dice can be described as a discrete uniform distribution.
True False
True False
True False
10. The Poisson distribution describes the number of occurrences within a randomly chosen unit of time or space.
True False
11. The Poisson distribution can be skewed either left or right, depending on λ.
True False
12. Although the shape of the Poisson distribution is positively skewed, it becomes more nearly symmetric as its mean becomes
larger.
True False
13. As a rule of thumb, the Poisson distribution can be used to approximate a binomial distribution when n ≥ 20 and π ≤ .05.
True False
14. The hypergeometric distribution is skewed right.
True False
15. The hypergeometric distribution assumes that the probability of a success remains the same from one trial to the next.
True False
16. The hypergeometric distribution is not applicable if sampling is done with replacement.
True False
17. As a rule of thumb, the binomial distribution can be used to approximate the hypergeometric distribution whenever the
population is at least 20 times as large as the sample.
True False
18. An example of a geometric random variable is the number of pine trees with pine beetle infestation in a random sample of 15
pine trees in Colorado.
True False
19. Calculating the probability of getting three aces in a hand of five cards dealt from a deck of 52 cards would require the use of a
hypergeometric distribution.
True False
20. The Poisson distribution is appropriate to describe the number of babies born in a small hospital on a given day.
True False
21. The gender (M, F) of a randomly chosen unborn child is a Bernoulli event.
True False
True False
23. The standard deviation of a Poisson random variable is the square root of its mean.
True False
24. Customer arrivals per unit of time would tend to follow a binomial distribution.
True False
25. The two outcomes (success, failure) in the Bernoulli model are equally likely.
True False
True False
B. Poisson random
variable.
C. binary random
variable.
D. binomial random
variable.
D. is usually uniformly
distributed.
33. The random variable X is the number of shots it takes before you make the first free throw in basketball. Assuming the
probability of success (making a free throw) is constant from trial to trial, what type of distribution does X follow?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
34. Which probability model is most nearly appropriate to describe the number of burned-out fluorescent tubes in a classroom with
12 fluorescent tubes, assuming a constant probability of a burned-out tube?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
35. Which distribution is most nearly appropriate to describe the number of fatalities in Texas in a given year due to poisonous
snakebites?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
36. Which model would you use to describe the probability that a call-center operator will make the first sale on the third call,
assuming a constant probability of making a sale?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
37. In a randomly chosen week, which probability model would you use to describe the number of accidents at the intersection of
two streets?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
38. Which model best describes the number of nonworking web URLs ("This page cannot be displayed") you encounter in a
randomly chosen minute while surfing websites for Florida vacation rental condos?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
39. Which probability model would you use to describe the number of damaged printers in a random sample of 4 printers taken
from a shipment of 28 printers that contains 3 damaged printers?
A. Poisson
B. Hypergeometri
c
C. Binomial
D. Unifor
m
40. Which model best describes the number of incorrect fare quotations by a well-trained airline ticket agent between 2 p.m. and 3
p.m. on a particular Thursday?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
41. Which model best describes the number of blemishes per sheet of white bond paper?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
42. To ensure quality, customer calls for airline fare quotations are monitored at random. On a particular Thursday afternoon, ticket
agent Bob gives 40 fare quotations, of which 4 are incorrect. In a random sample of 8 of these customer calls, which model
best describes the number of incorrect quotations Bob will make?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
43. The number of people injured in rafting expeditions on the Colorado River on a randomly chosen Thursday in August is best
described by which model?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
44. On a particular Thursday in August, 40 Grand Canyon tourists enter a drawing for a free mule ride. Ten of the entrants are
European tourists. Five entrants are selected at random to get the free mule ride. Which model best describes the number of
European tourists in the random sample?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
45. Which model best describes the number of births in a hospital until the first twins are delivered?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
46. On a randomly chosen Wednesday, which probability model would you use to describe the number of convenience store
robberies in Los Angeles?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
47. Which probability model would you use to describe the number of customers served at a certain California Pizza Kitchen until
the first customer orders split pea soup?
A. Binomial
B. Geometri
c
C. Unifor
m
D. Poisson
48. Which distribution has a mean of 5?
A. Poisson with λ =
25
49. Of the following, the one that most resembles a Poisson random variable is the number of:
50. A charity raffle prize is $1,000. The charity sells 4,000 raffle tickets. One winner will be selected at random. At what ticket price
would a ticket buyer expect to break even?
A. $0.50
B. $0.25
C. $0.75
D. $1.00
51. A die is rolled. If it rolls to a 1, 2, or 3, you win $2. If it rolls to a 4, 5, or 6, you lose $1. Calculate the expected winnings.
A. $0.50
B. $3.00
C. $1.50
D. $1.00
52. A fair die is rolled. If it comes up 1 or 2 you win $2. If it comes up 3, 4, 5, or 6, you lose $1. Calculate the expected winnings.
A. $0.00
B. $1.00
C. $0.50
D. $0.25
53. A carnival has a game of chance: a fair coin is tossed. If it lands heads you win $1.00, and if it lands tails you lose $0.50. How
much should a ticket to play this game cost if the carnival wants to break even?
A. $0.25
B. $0.50
C. $0.75
D. $1.00
54. Ephemeral Services Corporation (ESCO) knows that nine other companies besides ESCO are bidding for a $900,000
government contract. Each company has an equal chance of being awarded the contract. If ESCO has already spent $100,000
in developing its bidding proposal, what is its expected net profit?
A. $100,000
B. $90,000
C. -$10,00
0
D. $0
55. The discrete random variable X is the number of students that show up for Professor Smith's office hours on Monday
afternoons. The table below shows the probability distribution for X. What is the expected value E(X) for this distribution?
A. 1.2
B. 1.0
C. 1.5
D. 2.0
56. The discrete random variable X is the number of students that show up for Professor Smith's office hours on Monday
afternoons. The table below shows the probability distribution for X. What is the probability that at least 1 student comes to
office hours on any given Monday?
A. .30
B. .40
C. .50
D. .60
57. The discrete random variable X is the number of students that show up for Professor Smith's office hours on Monday
afternoons. The table below shows the probability distribution for X. What is the probability that fewer than 2 students come to
office hours on any given Monday?
A. .10
B. .40
C. .70
D. .90
58. The discrete random variable X is the number of passengers waiting at a bus stop. The table below shows the probability
distribution for X. What is the expected value E(X) for this distribution?
A. 1.1
B. 1.3
C. 1.7
D. 1.9
59. Given the following probability distribution, what is the expected value of the random variable X?
A. 175
B. 150
C. 200
D. 205
D. "successes" in n Bernoulli
trials.
A. π = 1 and 1 - π = 0.
B. π = ¼ and 1 - π = ¾.
C. π = ½ and 1 - π = ½.
D. π = 0 and 1 - π = 1.
A. π = 1 and 1 - π = 0.
B. π = ¼ and 1 - π = ¾.
C. π = ½ and 1 - π = ½.
D. π = 0 and 1 - π = 1.
66. A random variable is binomially distributed with n = 16 and π = .40. The expected value and standard deviation of the variables
are:
A. 2.00 and
1.24
B. 4.80 and
4.00
C. 6.40 and
1.96
D. 2.00 and
1.20
67. The expected value (mean) of a binomial variable is 15. The number of trials is 20. The probability of "success" is:
A. .25
B. .50
C. .75
D. .30
68. If 90 percent of automobiles in Orange County have both headlights working, what is the probability that in a sample of eight
automobiles, at least seven will have both headlights working?
A. .6174
B. .3826
C. .8131
D. .1869
69. In Quebec, 90 percent of the population subscribes to the Roman Catholic religion. In a random sample of eight Quebecois,
find the probability that the sample contains at least five Roman Catholics.
A. .0050
B. .0331
C. .9950
D. .9619
70. Hardluck Harry has a batting average of .200 (i.e., a 20 percent chance of a hit each time he's at bat). Scouts for a rival
baseball club secretly observe Harry's performance in 12 random times at bat. What is the probability that Harry will get more
than 2 hits?
A. .2055
B. .2362
C. .7946
D. .4417
71. The probability that a visitor to an animal shelter will adopt a dog is .20. Out of nine visits, what is the probability that at least
one dog will be adopted?
A. .8658
B. .3020
C. .5639
D. .1342
72. Based on experience, 60 percent of the women who request a pregnancy test at a certain clinic are actually pregnant. In a
random sample of 12 women, what is the probability that at least 10 are pregnant?
A. .0639
B. .1424
C. .0196
D. .0835
73. If 5 percent of automobiles in Oakland County have one burned-out headlight, what is the probability that, in a sample of 10
automobiles, none will have a burned-out headlight?
A. .5987
B. .3151
C. .0116
D. .1872
74. Jankord Jewelers permits the return of their diamond wedding rings, provided the return occurs within two weeks. Typically, 10
percent are returned. If eight rings are sold today, what is the probability that fewer than three will be returned?
A. .9950
B. .9619
C. .0331
D. .1488
75. The probability that an Oxnard University student is carrying a backpack is .70. If 10 students are observed at random, what is
the probability that fewer than 7 will be carrying backpacks?
A. .3504
B. .2001
C. .6177
D. .2668
76. An insurance company is issuing 16 car insurance policies. Suppose the probability for a claim during a year is 15 percent. If
the binomial probability distribution is applicable, then the probability that there will be at least two claims during the year is
equal to:
A. .5615
B. .2775
C. .7161
D. .0388
77. A random variable X is distributed binomially with n = 8 and π = 0.70. The standard deviation of the variable X is
approximately:
A. 0.458
B. 2.828
C. 1.680
D. 1.296
78. Suppose X is binomially distributed with n = 12 and π = .20. The probability that X will be less than or equal to 3 is:
A. .5584
B. .7946
C. .2362
D. .7638
79. Which Excel function would generate a single random X value for a binomial random variable with parameters n = 16 and π =
.25?
A. =BINOM.DIST(RAND(),16,.25,0
)
B. =BINOM.DIST(0,16,.25,RAND()
)
C. =BINOM.INV(16,.25,RAND())
D. =BINOM.INV(0,16,.25,RAND())
80. A network has three independent file servers, each with 90 percent reliability. The probability that the network will be
functioning correctly (at least one server is working) at a given time is:
A. 99.9
percent.
B. 97.2
percent.
C. 95.9
percent.
D. 72.9
percent.
82. Historically, 2 percent of the stray dogs in Southfield are unlicensed. On a randomly chosen day, the Southfield city animal
control officer picks up seven stray dogs. What is the probability that fewer than two will be unlicensed?
A. .8681
B. .9921
C. .3670
D. .0076
83. The domain of X in a Poisson probability distribution is discrete and can include:
A. any real X
value.
B. any integer X
value.
84. On Saturday morning, calls arrive at TicketMaster at a rate of 108 calls per hour. What is the probability of fewer than three
calls in a randomly chosen minute?
A. .1607
B. .8913
C. .2678
D. .7306
85. On average, a major earthquake (Richter scale 6.0 or above) occurs three times a decade in a certain California county. Find
the probability that at least one major earthquake will occur within the next decade.
A. .7408
B. .1992
C. .1494
D. .9502
86. On average, an IRS auditor discovers 4.7 fraudulent income tax returns per day. On a randomly chosen day, what is the
probability that she discovers fewer than two?
A. .0518
B. .0427
C. .1005
D. .1523
87. On a Sunday in April, dog bite victims arrive at Carver Memorial Hospital at a historical rate of 0.6 victim per day. On a given
Sunday in April, what is the probability that exactly two dog bite victims will arrive?
A. .0875
B. .0902
C. .0988
D. .0919
88. If tubing averages 16 defects per 100 meters, what is the probability of finding exactly 2 defects in a randomly chosen 10-meter
piece of tubing?
A. .8795
B. .2674
C. .3422
D. .2584
89. Cars are arriving at a toll booth at a rate of four per minute. What is the probability that exactly eight cars will arrive in the next
two minutes?
A. 0.0349
B. 0.1396
C. 0.9666
D. 0.0005
90. Arrival of cars per minute at a toll booth may be characterized by the Poisson distribution if:
A. 35.2
percent.
B. 58.9
percent.
C. 44.7
percent.
D. 31.1
percent.
A. 35.2
percent.
B. 58.9
percent.
C. 50.0
percent.
D. 26.4
percent.
A. n = 30, π = 0.02
B. n = 50, π = 0.03
C. n = 200, π = 0.10
D. n = 500, π = 0.01
A. n = 60, π = 0.08
B. n = 100, π = 0.15
C. n = 40, π = 0.03
D. n = 20, π = 0.20
95. For which binomial distribution would a Poisson approximation not be acceptable?
A. n = 35, π = 0.07
B. n = 95, π = 0.01
C. n = 80, π = 0.02
D. n = 50, π = 0.03
96. The true proportion of accounts receivable with some kind of error is .02 for Venal Enterprises. If an auditor randomly samples
200 accounts receivable, what is the approximate Poisson probability that fewer than two will contain errors?
A. .1038
B. .0916
C. .1465
D. .0015
97. The probability that a rental car will be stolen is 0.0004. If 3500 cars are rented, what is the approximate Poisson probability
that 2 or fewer will be stolen?
A. .3452
B. .2417
C. .5918
D. .8335
98. The probability that a customer will use a stolen credit card to make a purchase at a certain Target store is 0.003. If 400
purchases are made in a given day, what is the approximate Poisson probability that 4 or fewer will be with stolen cards?
A. .0053
B. .0076
C. .9923
D. .0555
99. The probability that a ticket holder will miss a flight is .005. If 180 passengers take the flight, what is the approximate Poisson
probability that at least 2 will miss the flight?
A. .9372
B. .0628
C. .1647
D. .2275
100. The probability that a certain daily flight's departure from ORD to LAX is delayed is .02. Over six months, this flight departs 180
times. What is the approximate Poisson probability that it will be delayed fewer than 2 times?
A. .4471
B. .3028
C. .1257
D. .1771
101. If X is a discrete uniform random variable ranging from 0 to 12, find P(X ≥ 10).
A. .1126
B. .1666
C. .2308
D. .2500
102. If X is a discrete uniform random variable ranging from one to eight, find P(X < 6).
A. .6250
B. .5000
C. .7500
D. .3750
103. If X is a discrete uniform random variable ranging from one to eight, its mean is:
A. 4.0
B. 4.5
C. 5.0
D. 5.5
104. If X is a discrete uniform random variable ranging from 12 to 24, its mean is:
A. 18.5
B. 16.0
C. 18.0
D. 19.5.
105. At Ersatz University, the graduating class of 480 includes 96 guest students from Latvia. A sample of 10 students is selected at
random to attend a dinner with the Board of Governors. Use the binomial model to obtain the approximate hypergeometric
probability that the sample contains at least three Latvian students.
A. .3222
B. .1209
C. .8791
D. .6778
106. There are 90 passengers on a commuter flight from SFO to LAX, of whom 27 are traveling on business. In a random sample of
five passengers, use the binomial model to find the approximate hypergeometric probability that there is at least one business
passenger.
A. .3087
B. .1681
C. .3602
D. .8319
107. Use the binomial model to find the approximate hypergeometric probability of at least two damaged flash drives in a sample of
five taken from a shipment of 150 that contains 30 damaged flash drives.
A. 0.9421
B. 0.0579
C. 0.7373
D. 0.2627
108. On a particular day, 112 of 280 passengers on a particular DTW-LAX flight used the e-ticket check-in kiosk to obtain boarding
passes. In a random sample of eight passengers, use the binomial model to find the approximate hypergeometric probability
that four will have used the e-ticket check-in kiosk to obtain boarding passes.
A. .2322
B. .8263
C. .2926
D. .5613
109. A clinic employs nine physicians. Five of the physicians are female. Four patients arrive at once. Assuming the doctors are
assigned randomly to patients, what is the probability that all of the assigned physicians are female?
A. .0397
B. .0295
C. .0808
D. .0533
110. There is a .02 probability that a customer's Visa charge will be rejected at a certain Target store because the transaction
exceeds the customer's credit limit. What is the probability that the first such rejection occurs on the third Visa transaction?
A. .0192
B. .0025
C. .0247
D. .0200
111. Ten percent of the corporate managers at Axolotl Industries majored in humanities. If you start interviewing Axolotl managers,
what is the probability that the first humanities major is the fifth manager that you interview?
A. .0656
B. .8561
C. .5904
D. .4095
112. Ten percent of the corporate managers at Axolotl Industries majored in humanities. What is the expected number of managers
to be interviewed until finding the first one with a humanities major?
A. 15
B. 20
C. 10
D. 17
113. When you send out a resume, the probability of being called for an interview is .20. What is the probability that the first
interview occurs on the fourth resume that you send out?
A. .4096
B. .1024
C. .2410
D. .0016
114. When you send out a resume, the probability of being called for an interview is .20. What is the expected number of resumes
you send out until you get the first interview?
A. 5
B. 7
C. 10
D. 12
115. When you send out a resume, the probability of being called for an interview is .20. What is the probability that you get your
first interview within the first five resumes that you send out?
A. .6723
B. .1024
C. .2410
D. .0016
116. There is a .02 probability that a customer's Visa charge will be rejected at a certain Target store because the transaction
exceeds the customer's credit limit. What is the probability that the first such rejection occurs within the first 20 Visa
transactions?
A. .1362
B. .4000
C. .3324
D. .4538
117. There is a .02 probability that a customer's Visa charge will be rejected at a certain Target store because the transaction
exceeds the customer's credit limit. What is the expected number of Visa transactions until the first one is rejected?
A. 10
B. 20
C. 50
D. 98
B. the probability that the first success will occur within a given number of
trials.
120. If the probability of success is .25, what is the probability of obtaining the first success within the first three trials?
A. .4218
B. .5781
C. .1406
D. .2228
121. If the probability of success is .30, what is the probability of obtaining the first success within the first five trials?
A. .0024
B. .8319
C. .1681
D. .9976
122. A project has three independent stages that must be completed in sequence. The time to complete each stage is a random
variable. The expected times to complete the stages are μ1 = 23, μ2 = 11, μ3 = 17. The expected project completion time is:
A. 51.
B. 23.
C. 40.
D. 32.
123. A project has 3 independent stages that must be completed in sequence. The time to complete each stage is a random
variable. The standard deviations of the completion times for the stages are σ1 = 5, σ2 = 4, σ3 = 6. The standard deviation of the
overall project completion time is:
A. 8.77
B. 15.0
C. 14.2
D. 9.24
124. A stock portfolio consists of two stocks X and Y. Their daily closing prices are independent random variables with standard
deviations σX = 2.51 and σY = 5.22. What is the standard deviation of the sum of the closing prices of these two stocks?
A. 33.55
B. 6.48
C. 7.73
D. 5.79
125. A stock portfolio consists of two stocks X and Y. Their daily closing prices are correlated random variables with variances σX2 =
3.51 and σY2 = 5.22, and covariance σXY = -1.55. What is the standard deviation of the sum of the closing prices of these two
stocks?
A. 5.63
B. 7.18
C. 8.73
D. 2.68
126. The expected value of a random variable X is 140 and the standard deviation is 14. The standard deviation of the random
variable Y = 3X - 10 is:
A. 42
B. 6.48
C. 14
D. 32
127. The expected value of a random variable X is 10 and the standard deviation is 2. The standard deviation of the random
variable Y = 2X - 10 is:
A. 2
B. 4
C. -1
0
D. -6
Answer Key
1. A random variable is a function or rule that assigns a numerical value to each outcome in the sample space of a stochastic
(chance) experiment.
TRUE
TRUE
Review definition of discrete random variable. But "countable" does not necessarily imply that we know the upper limit
(e.g., number of computer virus attacks per year).
3. The expected value of a discrete random variable E(X) is the sum of all X values weighted by their respective probabilities.
TRUE
4. A discrete distribution can be described by its probability density function (PDF) or by its cumulative distribution function
(CDF).
TRUE
Review definition of PDF (point probability) and CDF (cumulative sum of probabilities).
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-01 Define a discrete random variable and its probability distribution.
Topic: Discrete Probability Distributions
TRUE
6. To describe the number of blemishes per sheet of white bond paper, we would use a discrete uniform distribution.
FALSE
Not all X values would be equally likely and we have no upper limit (Poisson distribution would be better).
7. The outcomes for the sum of two dice can be described as a discrete uniform distribution.
FALSE
The sum of two dice follows a triangular distribution, as was shown in Chapter 5.
FALSE
TRUE
10. The Poisson distribution describes the number of occurrences within a randomly chosen unit of time or space.
TRUE
11. The Poisson distribution can be skewed either left or right, depending on λ.
FALSE
12. Although the shape of the Poisson distribution is positively skewed, it becomes more nearly symmetric as its mean
becomes larger.
TRUE
Although always right-skewed, the Poisson approaches a normal as the mean increases.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-05 Find Poisson probabilities using tables, formulas, or Excel.
Topic: Poisson Distribution
13. As a rule of thumb, the Poisson distribution can be used to approximate a binomial distribution when n ≥ 20 and π ≤ .05.
TRUE
FALSE
15. The hypergeometric distribution assumes that the probability of a success remains the same from one trial to the next.
FALSE
16. The hypergeometric distribution is not applicable if sampling is done with replacement.
TRUE
The hypergeometric is used when there is no replacement in sampling from a finite population.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-07 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution
17. As a rule of thumb, the binomial distribution can be used to approximate the hypergeometric distribution whenever the
population is at least 20 times as large as the sample.
TRUE
18. An example of a geometric random variable is the number of pine trees with pine beetle infestation in a random sample of
15 pine trees in Colorado.
FALSE
19. Calculating the probability of getting three aces in a hand of five cards dealt from a deck of 52 cards would require the use
of a hypergeometric distribution.
TRUE
20. The Poisson distribution is appropriate to describe the number of babies born in a small hospital on a given day.
TRUE
Events per unit of time with no clear upper limit suggests a Poisson event.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 06-05 Find Poisson probabilities using tables, formulas, or Excel.
Topic: Poisson Distribution
21. The gender (M, F) of a randomly chosen unborn child is a Bernoulli event.
TRUE
TRUE
23. The standard deviation of a Poisson random variable is the square root of its mean.
TRUE
Yes, because the mean and variance of a Poisson are the same.
24. Customer arrivals per unit of time would tend to follow a binomial distribution.
FALSE
25. The two outcomes (success, failure) in the Bernoulli model are equally likely.
FALSE
TRUE
C. binary random
variable.
D. is usually uniformly
distributed.
For example, the Sunday vehicle count on a freeway is a discrete (but large) number.
Time is continuous.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 06-01 Define a discrete random variable and its probability distribution.
Topic: Discrete Probability Distributions
33. The random variable X is the number of shots it takes before you make the first free throw in basketball. Assuming the
probability of success (making a free throw) is constant from trial to trial, what type of distribution does X follow?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
Geometric model describes the number of trials until the first success.
34. Which probability model is most nearly appropriate to describe the number of burned-out fluorescent tubes in a classroom
with 12 fluorescent tubes, assuming a constant probability of a burned-out tube?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
EXPLAIN:
35. Which distribution is most nearly appropriate to describe the number of fatalities in Texas in a given year due to poisonous
snakebites?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
Events per unit of time with no clear upper limit would resemble a Poisson distribution.
36. Which model would you use to describe the probability that a call-center operator will make the first sale on the third call,
assuming a constant probability of making a sale?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
Pi = Success = a call-center operator will make the first sale on the third call
37. In a randomly chosen week, which probability model would you use to describe the number of accidents at the intersection
of two streets?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
Events per unit of time with no clear upper limit would resemble a Poisson distribution.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find Poisson probabilities using tables, formulas, or Excel.
Topic: Poisson Distribution
38. Which model best describes the number of nonworking web URLs ("This page cannot be displayed") you encounter in a
randomly chosen minute while surfing websites for Florida vacation rental condos?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
Events per unit of time with no clear upper limit would resemble a Poisson distribution.
39. Which probability model would you use to describe the number of damaged printers in a random sample of 4 printers taken
from a shipment of 28 printers that contains 3 damaged printers?
A. Poisson
B. Hypergeometri
c
C. Binomial
D. Unifor
m
Sampling (n = 4 printers) without replacement with known number of "successes" (s = 3 damaged printers) in the
population (N = 28 printers).
40. Which model best describes the number of incorrect fare quotations by a well-trained airline ticket agent between 2 p.m.
and 3 p.m. on a particular Thursday?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
Events per unit of time with no clear upper limit would resemble a Poisson distribution.
41. Which model best describes the number of blemishes per sheet of white bond paper?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
Events per unit of area with no clear upper limit would resemble a Poisson distribution.
42. To ensure quality, customer calls for airline fare quotations are monitored at random. On a particular Thursday afternoon,
ticket agent Bob gives 40 fare quotations, of which 4 are incorrect. In a random sample of 8 of these customer calls, which
model best describes the number of incorrect quotations Bob will make?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
Sampling (n = 8 calls selected) without replacement with known number of "successes" (s = 4 incorrect quotes) in the
population (N = 40 quotes).
43. The number of people injured in rafting expeditions on the Colorado River on a randomly chosen Thursday in August is
best described by which model?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
Independent events per unit of time with no clear upper limit would be Poisson.
44. On a particular Thursday in August, 40 Grand Canyon tourists enter a drawing for a free mule ride. Ten of the entrants are
European tourists. Five entrants are selected at random to get the free mule ride. Which model best describes the number
of European tourists in the random sample?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
Sampling (n = 5 tourists selected) without replacement with known number of "successes" (s = 10 Europeans) in the
population (N = 40).
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-07 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution
45. Which model best describes the number of births in a hospital until the first twins are delivered?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
Geometric distribution describes the number of trials until the first success.
46. On a randomly chosen Wednesday, which probability model would you use to describe the number of convenience store
robberies in Los Angeles?
A. Binomial
B. Poisson
C. Hypergeometri
c
D. Geometri
c
Events per unit of time with no clear upper limit would be Poisson.
47. Which probability model would you use to describe the number of customers served at a certain California Pizza Kitchen
until the first customer orders split pea soup?
A. Binomial
B. Geometri
c
C. Unifor
m
D. Poisson
Geometric distribution describes the number of trials until the first success.
A. Poisson with λ =
25
A. Poisson with λ =
25
Mean = λ = 25
49. Of the following, the one that most resembles a Poisson random variable is the number of:
Independent arrivals per unit of time with no clear upper limit would be Poisson.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-05 Find Poisson probabilities using tables, formulas, or Excel.
Topic: Poisson Distribution
50. A charity raffle prize is $1,000. The charity sells 4,000 raffle tickets. One winner will be selected at random. At what ticket
price would a ticket buyer expect to break even?
A. $0.50
B. $0.25
C. $0.75
D. $1.00
51. A die is rolled. If it rolls to a 1, 2, or 3, you win $2. If it rolls to a 4, 5, or 6, you lose $1. Calculate the expected winnings.
A. $0.50
B. $3.00
C. $1.50
D. $1.00
EXPLAIN:
Expected winnings = Mean = 1/6* $2 + 1/6* $2 + 1/6* $2 + 1/6*(-$1) + 1/6*(-$1) + 1/6*(-$1) = $0.50
52. A fair die is rolled. If it comes up 1 or 2 you win $2. If it comes up 3, 4, 5, or 6, you lose $1. Calculate the expected
winnings.
A. $0.00
B. $1.00
C. $0.50
D. $0.25
53. A carnival has a game of chance: a fair coin is tossed. If it lands heads you win $1.00, and if it lands tails you lose $0.50.
How much should a ticket to play this game cost if the carnival wants to break even?
A. $0.25
B. $0.50
C. $0.75
D. $1.00
54. Ephemeral Services Corporation (ESCO) knows that nine other companies besides ESCO are bidding for a $900,000
government contract. Each company has an equal chance of being awarded the contract. If ESCO has already spent
$100,000 in developing its bidding proposal, what is its expected net profit?
A. $100,000
B. $90,000
C. -$10,00
0
D. $0
E(X) = (1/9) × $900,000 = $100,000. ESCO only can expect to cover its sunk cost (no profit).
55. The discrete random variable X is the number of students that show up for Professor Smith's office hours on Monday
afternoons. The table below shows the probability distribution for X. What is the expected value E(X) for this distribution?
A. 1.2
B. 1.0
C. 1.5
D. 2.0
A. .30
B. .40
C. .50
D. .60
57. The discrete random variable X is the number of students that show up for Professor Smith's office hours on Monday
afternoons. The table below shows the probability distribution for X. What is the probability that fewer than 2 students come
to office hours on any given Monday?
A. .10
B. .40
C. .70
D. .90
58. The discrete random variable X is the number of passengers waiting at a bus stop. The table below shows the probability
distribution for X. What is the expected value E(X) for this distribution?
A. 1.1
B. 1.3
C. 1.7
D. 1.9
59. Given the following probability distribution, what is the expected value of the random variable X?
A. 175
B. 150
C. 200
D. 205
D. "successes" in n Bernoulli
trials.
A. π = 1 and 1 - π = 0.
B. π = ¼ and 1 - π = ¾.
C. π = ½ and 1 - π = ½.
D. π = 0 and 1 - π = 1.
The binomial distribution is skewed unless π = .50.
A. π = 1 and 1 - π = 0.
B. π = ¼ and 1 - π = ¾.
C. π = ½ and 1 - π = ½.
D. π = 0 and 1 - π = 1.
66. A random variable is binomially distributed with n = 16 and π = .40. The expected value and standard deviation of the
variables are:
A. 2.00 and
1.24
B. 4.80 and
4.00
C. 6.40 and
1.96
D. 2.00 and
1.20
Review formulas for the binomial distribution mean and standard deviation.
67. The expected value (mean) of a binomial variable is 15. The number of trials is 20. The probability of "success" is:
A. .25
B. .50
C. .75
D. .30
68. If 90 percent of automobiles in Orange County have both headlights working, what is the probability that in a sample of
eight automobiles, at least seven will have both headlights working?
A. .6174
B. .3826
C. .8131
D. .1869
Use Appendix A with n = 8 and π = .90 to find P(X ≥ 7) or else use the Excel function =1-BINOM.DIST(6,8,.90,1) = .8131.
A. .0050
B. .0331
C. .9950
D. .9619
Use Appendix A with n = 8 and π = .90 to find P(X ≥ 5) or else use the Excel function =1-BINOM.DIST(4,8,.90,1) = .99498.
70. Hardluck Harry has a batting average of .200 (i.e., a 20 percent chance of a hit each time he's at bat). Scouts for a rival
baseball club secretly observe Harry's performance in 12 random times at bat. What is the probability that Harry will get
more than 2 hits?
A. .2055
B. .2362
C. .7946
D. .4417
Use Appendix A with n = 12 and π = .20 to find P(X ≥ 3) or else use the Excel function =1-BINOM.DIST(2,12,.20,1) =
.44165.
71. The probability that a visitor to an animal shelter will adopt a dog is .20. Out of nine visits, what is the probability that at
least one dog will be adopted?
A. .8658
B. .3020
C. .5639
D. .1342
Use Appendix A with n = 9 and π = .20 to find P(X ≥ 1) or else use the Excel function =1-BINOM.DIST(0,9,.20,1) =
.865778.
Summary:
Binomial
Pi = 0.2
N=9
X = 0; 1; 2; 3; 4; 5; 6; 7; 8; 9.
P (X ≥ 1) = P (X = 1) + P (X = 2) + P (X = 3) + …. + P (X = 9)
NOTE:
P ( X ≥ 5) = 1 – P (X ≤ 4)
72. Based on experience, 60 percent of the women who request a pregnancy test at a certain clinic are actually pregnant. In a
random sample of 12 women, what is the probability that at least 10 are pregnant?
A. .0639
B. .1424
C. .0196
D. .0835
Use Appendix A with n = 12 and π = .60 to find P (X ≥ 10) or else use the Excel function =1-BINOM.DIST(9,12,.60,1) =
.08344.
SUMMARY:
π = 60%
n = 12
P (X = 9): PDF
P (X ≤ 9): CDF
NOTE: Based on experience, 60 percent of the women who request a pregnancy test at a certain clinic are actually
pregnant. In a random sample of 12 women, what is the probability that at least 10 are not pregnant? π = 40%
At least, 2 or more: ≥
At most, 2 or less: ≤
73. If 5 percent of automobiles in Oakland County have one burned-out headlight, what is the probability that, in a sample of 10
automobiles, none will have a burned-out headlight?
A. .5987
B. .3151
C. .0116
D. .1872
Use Appendix A with n = 10 and π = .05 find P(X = 0) or else use the Excel function =BINOM.DIST(0,10,.05,0) = .59874.
74. Jankord Jewelers permits the return of their diamond wedding rings, provided the return occurs within two weeks. Typically,
10 percent are returned. If eight rings are sold today, what is the probability that fewer than three will be returned?
A. .9950
B. .9619
C. .0331
D. .1488
Use Appendix A with n = 8 and π = .10 to find P(X < 3) or else use the Excel function =BINOM.DIST(2,8,.1,1) = .96191.
A. .3504
B. .2001
C. .6177
D. .2668
Use Appendix A with n = 10 and π = .70 to find P(X < 7) or else use the Excel function =BINOM.DIST(6,10,.7,1) = .35039.
76. An insurance company is issuing 16 car insurance policies. Suppose the probability for a claim during a year is 15 percent.
If the binomial probability distribution is applicable, then the probability that there will be at least two claims during the year
is equal to:
A. .5615
B. .2775
C. .7161
D. .0388
Use Appendix A with n = 16 and π = .15 to find P(X ≥ 2) or else use the Excel function =1-BINOM.DIST(1,16,.15,1) =
.7161.
77. A random variable X is distributed binomially with n = 8 and π = 0.70. The standard deviation of the variable X is
approximately:
A. 0.458
B. 2.828
C. 1.680
D. 1.296
78. Suppose X is binomially distributed with n = 12 and π = .20. The probability that X will be less than or equal to 3 is:
A. .5584
B. .7946
C. .2362
D. .7638
Use Appendix A with n = 12 and π = .20 to find P(X ≤ 3) or else use the Excel function =BINOM.DIST(3,12,.2,1) = .79457.
79. Which Excel function would generate a single random X value for a binomial random variable with parameters n = 16 and
π = .25?
A. =BINOM.DIST(RAND(),16,.25,0
)
B. =BINOM.DIST(0,16,.25,RAND()
)
C. =BINOM.INV(16,.25,RAND())
D. =BINOM.INV(0,16,.25,RAND())
AACSB: Technology
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 06-04 Find binomial probabilities using tables, formulas, or Excel.
Topic: Binomial Distribution
80. A network has three independent file servers, each with 90 percent reliability. The probability that the network will be
functioning correctly (at least one server is working) at a given time is:
A. 99.9
percent.
B. 97.2
percent.
C. 95.9
percent.
D. 72.9
percent.
82. Historically, 2 percent of the stray dogs in Southfield are unlicensed. On a randomly chosen day, the Southfield city animal
control officer picks up seven stray dogs. What is the probability that fewer than two will be unlicensed?
A. .8681
B. .9921
C. .3670
D. .0076
A. any real X
value.
B. any integer X
value.
84. On Saturday morning, calls arrive at TicketMaster at a rate of 108 calls per hour. What is the probability of fewer than three
calls in a randomly chosen minute?
A. .1607
B. .8913
C. .2678
D. .7306
85. On average, a major earthquake (Richter scale 6.0 or above) occurs three times a decade in a certain California county.
Find the probability that at least one major earthquake will occur within the next decade.
A. .7408
B. .1992
C. .1494
D. .9502
86. On average, an IRS auditor discovers 4.7 fraudulent income tax returns per day. On a randomly chosen day, what is the
probability that she discovers fewer than two?
A. .0518
B. .0427
C. .1005
D. .1523
87. On a Sunday in April, dog bite victims arrive at Carver Memorial Hospital at a historical rate of 0.6 victim per day. On a
given Sunday in April, what is the probability that exactly two dog bite victims will arrive?
A. .0875
B. .0902
C. .0988
D. .0919
88. If tubing averages 16 defects per 100 meters, what is the probability of finding exactly 2 defects in a randomly chosen
10-meter piece of tubing?
A. .8795
B. .2674
C. .3422
D. .2584
Use Appendix B with λ = 16/10 = 1.6.
89. Cars are arriving at a toll booth at a rate of four per minute. What is the probability that exactly eight cars will arrive in the
next two minutes?
A. 0.0349
B. 0.1396
C. 0.9666
D. 0.0005
90. Arrival of cars per minute at a toll booth may be characterized by the Poisson distribution if:
A. 35.2
percent.
B. 58.9
percent.
C. 44.7
percent.
D. 31.1
percent.
Use the coefficient of variation with standard deviation equal to the square root of the mean.
A. 35.2
percent.
B. 58.9
percent.
C. 50.0
percent.
D. 26.4
percent.
A. n = 30, π = 0.02
B. n = 50, π = 0.03
C. n = 200, π = 0.10
D. n = 500, π = 0.01
A. n = 60, π = 0.08
B. n = 100, π = 0.15
C. n = 40, π = 0.03
D. n = 20, π = 0.20
95. For which binomial distribution would a Poisson approximation not be acceptable?
A. n = 35, π = 0.07
B. n = 95, π = 0.01
C. n = 80, π = 0.02
D. n = 50, π = 0.03
96. The true proportion of accounts receivable with some kind of error is .02 for Venal Enterprises. If an auditor randomly
samples 200 accounts receivable, what is the approximate Poisson probability that fewer than two will contain errors?
A. .1038
B. .0916
C. .1465
D. .0015
Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (200)(.02) = 4.0 and use Appendix B to find P(X ≤ 1), or else use the Excel
cumulative distribution function =POISSON.DIST(1,4.0,1) = .09158.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-06 Use the Poisson approximation to the binomial (optional).
Topic: Poisson Distribution
97. The probability that a rental car will be stolen is 0.0004. If 3500 cars are rented, what is the approximate Poisson
probability that 2 or fewer will be stolen?
A. .3452
B. .2417
C. .5918
D. .8335
Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (3500)(.0004) = 1.4 and use Appendix B to find P(X ≤ 2), or else use the
Excel cumulative distribution function =POISSON.DIST(2,1.4,1) = .8335.
98. The probability that a customer will use a stolen credit card to make a purchase at a certain Target store is 0.003. If 400
purchases are made in a given day, what is the approximate Poisson probability that 4 or fewer will be with stolen cards?
A. .0053
B. .0076
C. .9923
D. .0555
Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (400)(.003) = 1.2 and use Appendix B, or else use the Excel cumulative
distribution function =POISSON.DIST(4,.003*400,1) = .9923.
99. The probability that a ticket holder will miss a flight is .005. If 180 passengers take the flight, what is the approximate
Poisson probability that at least 2 will miss the flight?
A. .9372
B. .0628
C. .1647
D. .2275
Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (.005)(180) = 0.9 and use Appendix B to find P(X ≥ 2), or else use the Excel
cumulative distribution function =1-POISSON.DIST(1,0.9,1) = .2275.
100. The probability that a certain daily flight's departure from ORD to LAX is delayed is .02. Over six months, this flight departs
180 times. What is the approximate Poisson probability that it will be delayed fewer than 2 times?
A. .4471
B. .3028
C. .1257
D. .1771
Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (180)(.02) = 3.6 and use Appendix B to find P(X ≤ 1) or else use the Excel
cumulative distribution function =POISSON.DIST(1,3.6,1) = .12569.
101. If X is a discrete uniform random variable ranging from 0 to 12, find P(X ≥ 10).
A. .1126
B. .1666
C. .2308
D. .2500
102. If X is a discrete uniform random variable ranging from one to eight, find P(X < 6).
A. .6250
B. .5000
C. .7500
D. .3750
103. If X is a discrete uniform random variable ranging from one to eight, its mean is:
A. 4.0
B. 4.5
C. 5.0
D. 5.5
The mean is halfway between the lower and upper limits 1 and 8.
104. If X is a discrete uniform random variable ranging from 12 to 24, its mean is:
A. 18.5
B. 16.0
C. 18.0
D. 19.5.
The mean is halfway between the lower and upper limits 12 and 24.
A. .3222
B. .1209
C. .8791
D. .6778
Since n/N < .05 we can use Appendix A with n = 10 and π = 96/480 = .20 to find P(X ≥ 3).
106. There are 90 passengers on a commuter flight from SFO to LAX, of whom 27 are traveling on business. In a random
sample of five passengers, use the binomial model to find the approximate hypergeometric probability that there is at least
one business passenger.
A. .3087
B. .1681
C. .3602
D. .8319
Since n/N < .05 we can use Appendix A with n = 5 and π = 27/90 = .30 to find P(X ≥ 1).
107. Use the binomial model to find the approximate hypergeometric probability of at least two damaged flash drives in a
sample of five taken from a shipment of 150 that contains 30 damaged flash drives.
A. 0.9421
B. 0.0579
C. 0.7373
D. 0.2627
Since n/N < .05 we can use Appendix A with n = 5 and π = 30/150 = .20 to find P(X ≥ 2).
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-08 Use the binomial approximation to the hypergeometric (optional).
Topic: Hypergeometric Distribution
108. On a particular day, 112 of 280 passengers on a particular DTW-LAX flight used the e-ticket check-in kiosk to obtain
boarding passes. In a random sample of eight passengers, use the binomial model to find the approximate hypergeometric
probability that four will have used the e-ticket check-in kiosk to obtain boarding passes.
A. .2322
B. .8263
C. .2926
D. .5613
Since n/N < .05 we can use Appendix A with n = 8 and π = 112/280 = .40 to find P(X = 4).
109. A clinic employs nine physicians. Five of the physicians are female. Four patients arrive at once. Assuming the doctors are
assigned randomly to patients, what is the probability that all of the assigned physicians are female?
A. .0397
B. .0295
C. .0808
D. .0533
You can't use the binomial approximation, because we have sampled more than 5% of the population (n/N = 4/9 = .444) so
we use the hypergeometric formula with x = 4, n = 4, s = 5, N = 9 or use the Excel function =HYPGEOM.DIST(4,4,5,9,0) =
.03938.
110. There is a .02 probability that a customer's Visa charge will be rejected at a certain Target store because the transaction
exceeds the customer's credit limit. What is the probability that the first such rejection occurs on the third Visa transaction?
A. .0192
B. .0025
C. .0247
D. .0200
Use the formulas for the geometric PDF (not the CDF) with π = .02 to find P(X = 3) = .02(1 - .02)3-1 = .02(.98)2 = .02(.9604)
= .019208.
111. Ten percent of the corporate managers at Axolotl Industries majored in humanities. If you start interviewing Axolotl
managers, what is the probability that the first humanities major is the fifth manager that you interview?
A. .0656
B. .8561
C. .5904
D. .4095
Use the formulas for the geometric PDF (not the CDF) with π = .10 to find P(X = 5) = .10(1 - .10)5-1 = .10(.90)4 = .10(.6561)
= .06561.
112. Ten percent of the corporate managers at Axolotl Industries majored in humanities. What is the expected number of
managers to be interviewed until finding the first one with a humanities major?
A. 15
B. 20
C. 10
D. 17
A. .4096
B. .1024
C. .2410
D. .0016
Use the formulas for the geometric PDF (not the CDF) with π = .20 to find P(X = 4) = .20(1 - .20)4-1 = .20(.80)3 = .20(.512) =
.1024.
114. When you send out a resume, the probability of being called for an interview is .20. What is the expected number of
resumes you send out until you get the first interview?
A. 5
B. 7
C. 10
D. 12
115. When you send out a resume, the probability of being called for an interview is .20. What is the probability that you get your
first interview within the first five resumes that you send out?
A. .6723
B. .1024
C. .2410
D. .0016
Use the formulas for the geometric CDF (not the PDF) with π = .20 to find P(X ≤ 5) = 1 - (1 - .20)5 = 1 - (.80)5 = 1 - .32678 =
.67232.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)
116. There is a .02 probability that a customer's Visa charge will be rejected at a certain Target store because the transaction
exceeds the customer's credit limit. What is the probability that the first such rejection occurs within the first 20 Visa
transactions?
A. .1362
B. .4000
C. .3324
D. .4538
Use the formulas for the geometric CDF (not the PDF) with π = .02 to find P(X ≤ 20) = 1 - (1 - .02)20 = 1 - (.98)20 = 1 - .6676
= .3324.
117. There is a .02 probability that a customer's Visa charge will be rejected at a certain Target store because the transaction
exceeds the customer's credit limit. What is the expected number of Visa transactions until the first one is rejected?
A. 10
B. 20
C. 50
D. 98
B. the probability that the first success will occur within a given number of
trials.
120. If the probability of success is .25, what is the probability of obtaining the first success within the first three trials?
A. .4218
B. .5781
C. .1406
D. .2228
Use the formulas for the geometric CDF (not the PDF) with π = .25 to find P(X ≤ 3) = 1 - (1 - .25)3 = 1 - (.75)3 = 1 - .421875
= .578125.
121. If the probability of success is .30, what is the probability of obtaining the first success within the first five trials?
A. .0024
B. .8319
C. .1681
D. .9976
Use the formulas for the geometric CDF (not the PDF) with π = .30 to find P(X ≤ 5) = 1 - (1 - .30)5 = 1 - (.70)5 = 1 - .16807 =
.83193.
122. A project has three independent stages that must be completed in sequence. The time to complete each stage is a random
variable. The expected times to complete the stages are μ1 = 23, μ2 = 11, μ3 = 17. The expected project completion time is:
A. 51.
B. 23.
C. 40.
D. 32.
123. A project has 3 independent stages that must be completed in sequence. The time to complete each stage is a random
variable. The standard deviations of the completion times for the stages are σ1 = 5, σ2 = 4, σ3 = 6. The standard deviation
of the overall project completion time is:
A. 8.77
B. 15.0
C. 14.2
D. 9.24
The variances can be summed because the stages are independent (Rule 4). You have to square the standard deviations
to get the variances σ12 = 25, σ22 = 16, σ32 = 36, then add them and take the square root of the sum. Be careful—the
standard deviations cannot be summed.
A. 33.55
B. 6.48
C. 7.73
D. 5.79
The variances can be summed because the stages are independent (Rule 4). You have to square the standard deviations
to get the variances σX2 = 6.3001 and σY2 = 27.2484, then add them and take the square root of the sum. Be careful—the
standard deviations cannot be summed.
125. A stock portfolio consists of two stocks X and Y. Their daily closing prices are correlated random variables with variances
σX2 = 3.51 and σY2 = 5.22, and covariance σXY = -1.55. What is the standard deviation of the sum of the closing prices of
these two stocks?
A. 5.63
B. 7.18
C. 8.73
D. 2.68
Use the formula for the variance of correlated (nonindependent) events. We sum the variances and covariance, and then
take the square root: σX+Y = [σX2 + σY2 + σXY]1/2 = [3.51 + 5.22 - 1.55]1/2 = [7.18]1/2 = 2.67955.
126. The expected value of a random variable X is 140 and the standard deviation is 14. The standard deviation of the random
variable Y = 3X - 10 is:
A. 42
B. 6.48
C. 14
D. 32
Use the rule for functions of a random variable (Rule 2) to get σY = 3σX = (3)(14) = 42. The constant -10 merely shifts the
distribution and has no effect on the standard deviation. The mean of Y is not requested.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-10 Apply rules for transformations of random variables (optional).
Topic: Transformations of Random Variables (Optional)
127. The expected value of a random variable X is 10 and the standard deviation is 2. The standard deviation of the random
variable Y = 2X - 10 is:
A. 2
B. 4
C. -1
0
D. -6
Use the rule for functions of a random variable (Rule 2) to get σY = 2σX = (2)(2) = 4. The constant -10 merely shifts the
distribution and has no effect on the standard deviation. The mean of Y is not requested.