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SB-Test-Bank-Chapter 05

statistics for business (UEH-International School of Business)

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Chap 5
ANSWER KEY

40. Events A and B are mutually exclusive when:

A their joint probability


. is zero.
B they are independent
. events.
C P(A)P(B)
. =0
D P(A)P(B) = P(A
. | B)

Review definition of mutually exclusive.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-03 Apply the definitions and rules of probability.
Topic: Rules of Probability

41. If two events are complementary, then we know that:

A the sum of their probabilities


. is one.
B the joint probability of the two
. events is one.
C their intersection has a nonzero
. probability.
D they are independent
. events.

Review definition of complementary events.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 05-03 Apply the definitions and rules of probability.
Topic: Rules of Probability

42. Regarding probability, which of the following is correct?

A When events A and B are mutually exclusive, then P(A∩B) =


. P(A) + P(B).
B The union of events A and B consists of all outcomes in the sample space that
. are contained in both event A and event B.
C When two events A and B are independent, the joint probability of the events
. can be found by multiplying the probabilities of the individual events.
D The probability of the union of two events can
. exceed one.

Review the rules of probability.

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AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 05-05 Determine when events are independent.
Topic: Independent Events

43. Independent events A and B would be consistent with which of the following
statements:

A P(A) = .3, P(B) = .5,


. P(A∩B) = .4.
B P(A) = .4, P(B) = .5,
. P(A∩B) = .2.
C P(A) = .5, P(B) = .4,
. P(A∩B) = .3.
D P(A) = .4, P(B) = .3,
. P(A∩B) = .5.

For independence, the product P(A)P(B) must equal P(A∩B).

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 05-05 Determine when events are independent.
Topic: Independent Events

44. Find the probability that either event A or B occurs if the chance of A occurring is .5,
the chance of B occurring is .3, and events A and B are independent.

A .
. 8
0
B .
. 1
5
C .
. 6
5
D .
. 8
5

Given that the events are independent, the product P(A)P(B) must equal P(A∩B).
Thus, P(A or B) = P(A) + P(B) - P(A∩B) = .50 + .30 - (.50)(.30) = .80 - .15 = .65
using the General Law of Addition.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-05 Determine when events are independent.
Topic: Independent Events

45. Regarding the rules of probability, which of the following statements is correct?

A If A and B are independent events, then P(B) =


. P(A)P(B).
B The sum of two mutually exclusive

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. events is one.
C The probability of A and its complement will
. sum to one.
D If event A occurs, then its complement will
. also occur.

Review the rules of probabilities.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 05-03 Apply the definitions and rules of probability.
Topic: Rules of Probability

46. Within a given population, 22 percent of the people are smokers, 57 percent of the
people are males, and 12 percent are males who smoke. If a person is chosen at
random from the population, what is the probability that the selected person is
either a male or a smoker?

A .
. 6
7
B .
. 7
9
C .
. 2
2
D .
. 4
3

Use the General Law of Addition P(A or B) = P(A) + P(B) - P(A∩B).

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-03 Apply the definitions and rules of probability.
Topic: Rules of Probability

47. Information was collected on those who attended the opening of a new movie. The
analysis found that 56 percent of the moviegoers were female, 26 percent were
under age 25, and 17 percent were females under the age of 25. Find the
probability that a moviegoer is either female or under age 25.

A .
. 7
9
B .
. 8
2
C .
. 6
5
D .
. 5
0

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Use the General Law of Addition P(A or B) = P(A) + P(B) - P(A∩B).

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-03 Apply the definitions and rules of probability.
Topic: Rules of Probability

48. Given the contingency table shown here, find P(V).

A .
. 2
0
B .
. 4
0
C .
. 5
0
D .
. 8
0

This is a marginal probability P(V) = 40/200 = .20.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

49. Given the contingency table shown here, find P(V | W).

A .
. 40
00
B .
. 09
50
C .
. 23

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75
D .
. 58
75

This is a conditional probability P(V|W) = 19/80.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

50. Given the contingency table shown here, find the probability P(V´), that is, the
probability of the complement of V.

A .
. 3
0
B .
. 5
0
C .
. 8
0
D .
. 1
5

Calculate the probability of the complement of V by subtracting from its marginal


probability P(V) = 40/200 to get P(V´) = 1 - P(V) = 1 - 40/200.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

51. Given the contingency table shown here, find P(W∩S).

A .
. 1
2

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B .
. 3
0
C .
. 4
0
D .
. 5
8

This is a joint probability P(W and S) = 24/200.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

52. Given the contingency table shown here, find P(A or M).

A .
. 25
00
B .
. 75
00
C .
. 62
50
D .
. 12
50

Use the General Law of Addition P(A or M) = 100/200 + 50/200 - 25/200.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

53. Given the contingency table shown here, find P(A2).

A .

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. 18
42
B .
. 17
66
C .
. 81
63
D .
. 05
78

This is a marginal probability: P(A2) = 86/467.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

54. Given the contingency table shown here, find P(A3∩B2).

A .
. 32
12
B .
. 29
33
C .
. 09
42
D .
. 10
06

This is a joint probability: P(A3 and B2) = 44/467.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

55. Given the contingency table shown here, find P(A2 | B3).

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A .
. 06
85
B .
. 18
93
C .
. 37
21
D .
. 18
42

This is a conditional probability: P(A2|B3) = 32/169.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

56. Given the contingency table shown here, find P(A1 or B2).

A .
. 09
33
B .
. 31
82
C .
. 03
00
D .
. 38
54

Apply the General Law of Addition: P(A1 or B2) = 44/467 + 150/467 - 14/467.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

57. Given the contingency table shown here, find P(A1∩A2).

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A .
. 0
0
B .
. 0
9
C .
. 2
8
D .
. 3
8

This is a joint probability. The important thing here is that events A1 and A2 are
mutually exclusive and so both events cannot occur.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

58. Given the contingency table shown here, find the probability that either event A2 or
event B2 will occur.

A .
. 44
54
B .
. 50
54
C .
. 06
00

Use the General Law of Addition: P(A2 or B2) = 86/467 + 150/467 - 28/467.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

59. Given the contingency table shown here, find P(B).

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A .
. 8
5
B .
. 2
5
C .
. 4
5
D .
. 2
2

This is a marginal probability: P(B) = 90/200.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

60. Given the contingency table shown here, find P(A or B).

A .
. 2
5
B .
. 8
5
C .
. 6
0
D .
. 4
2

Use the General Law of Addition: P(A or B) = 80/200 + 90/200 - 50/200.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

61. Given the contingency table shown here, find P(B | A]).

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A .
. 2
5
0
B .
. 5
5
5
C .
. 8
5
5
D .
. 6
2
5

This is a conditional probability: P(B|A) = 50/80.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

62. Given the contingency table shown here, what is the probability that a randomly
chosen employee who is under age 25 would be absent 2 or more days?

A .
. 6
2
5
B .
. 3
7
5
C .
. 1
5
0
D .
. 2
7
3

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This is a conditional probability: P(B'|A) = 30/80.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

63. Oxnard Casualty wants to ensure that their e-mail server has 99.98 percent
reliability. They will use several independent servers in parallel, each of which is 95
percent reliable. What is the smallest number of independent file servers that will
accomplish the goal?

A 1
.
B 2
.
C 3
.
D 4
.

1 - P(F1∩F2∩F3) = 1 - (.05) (.05) (.05) = 1 - .000125 = .999875, so 3 servers will do.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-05 Determine when events are independent.
Topic: Independent Events

64. Given the contingency table shown here, does the decision to retire appear
independent of the management type?

Survey question: Do you plan on retiring or keep working when you turn 65?

A Y
. e
s.
B N
. o
.

Does the product of the marginal probabilities equal their joint probability? This can
be checked by asking whether P(M and R) = P(M) P(R). In this example, because
(31/124)(52/124) = 13/124, we can see that M and R are independent events.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

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65. Given the contingency table shown here, find the probability that a randomly
chosen employee is a line worker who plans to retire at age 65.

Survey question: Do you plan on retiring or keep working when you turn 65?

A .
. 2
2
7
B .
. 4
1
9
C .
. 7
5
0
D .
. 3
1
5

This is a joint probability: P(L and R) = 39/124.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

66. Given the contingency table shown here, find P(R∩L).

Survey question: Do you plan on retiring or keep working when you turn 65?

A .
. 2
5
0
B .
. 3
1
5
C .
. 4
2
5
D .

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. 8
5
0

This is a joint probability: P(R∩L) = 39/124.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

67. Given the contingency table shown here, find P(W | M).

Survey question: Do you plan on retiring or keep working when you turn 65?

A .
. 1
4
5
B .
. 2
5
0
C .
. 5
8
1
D .
. 6
8
7

This is a conditional probability: P(W | M) = 18/31.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

68. Given the contingency table shown here, find P(L or W).

Survey question: Do you plan on retiring or keep working when you turn 65?

A .
. 7
5

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0
B .
. 5
8
8
C .
. 4
3
5
D .
. 8
9
5

Use the General Law of Addition: P(L or W) = 93/124 + 72/124 - 54/124.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

69. Ramjac Company wants to set up k independent file servers, each capable of
running the company's intranet. Each server has average "uptime" of 98 percent.
What must k be to achieve 99.999 percent probability that the intranet will be
"up"?

A 1
.
B 2
.
C 3
.
D 4
.

1 - P(F1∩F2∩F3) = 1 - (.02)(.02)(.02) = 1 - .000008 = .999992, so 3 servers will do.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-05 Determine when events are independent.
Topic: Independent Events

70. Given the contingency table shown here, what is the probability that a mother in
the study smoked during pregnancy?

A .
. 25

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91
B .
. 31
74
C .
. 50
00
D .
. 74
01

This is a marginal probability: P(smoked) = 1122/4331.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

71. Given the contingency table shown here, what is the probability that a mother
smoked during pregnancy if her education level was below high school?

A .
. 23
85
B .
. 09
07
C .
. 35
03
D .
. 38
04

This is a conditional probability: P(smoked | below high school) = 393/1033.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

72. Given the contingency table shown here, what is the probability that a mother
smoked during pregnancy and had a college degree?

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A .
. 01
11
B .
. 04
28
C .
. 08
03
D .
. 23
85

This is a joint probability: P(smoked and college) = 48/4331.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

73. Given the contingency table shown here, what is the probability that a mother
smoked during pregnancy or that she graduated from college?

A .
. 01
11
B .
. 25
91
C .
. 38
61
D .
. 78
50

Use the General Law of Addition: 1122/4331 + 598/4331 - 48/4331.

AACSB: Analytical Thinking


Blooms: Apply

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Difficulty: 3 Hard
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

74. Given the contingency table shown here, if a mother attended some college but did
not have a degree, what is the probability that she did not smoke during her
pregnancy?

A .
. 27
36
B .
. 83
99
C .
. 87
52
D .
. 91
97

This is a conditional probability: 635/756.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

75. Given the contingency table shown here, find the probability that a mother with
some college smoked during pregnancy.

A .
. 10
78
B .
. 17
46
C .
. 16
01

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D .
. 11
17

This is a conditional probability: 121/756.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

76. Given the contingency table shown here, if a survey participant is selected at
random, what is the probability he/she is an undergrad who favors the change to a
quarter system?

A .
. 2
7
0
B .
. 1
3
5
C .
. 3
3
8
D .
. 7
5
6

This is a joint probability: P(U and S) = 27/200.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

77. Given the contingency table shown here, if a faculty member is chosen at random,
what is the probability he/she opposes the change to a quarter system?

A .
. 1

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0
B .
. 2
5
C .
. 4
0
D .
. 6
0

This is a marginal probability: P(N | F) = 20/50 = .40.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

78. Given the contingency table shown here, what is the probability that a participant
selected at random is a graduate student and opposes the change to a quarter
system?

A .
. 1
3
5
B .
. 2
5
0
C .
. 3
7
5
D .
. 5
4
0

This is a joint probability: P(G and N) = 27/200.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

79. Given the contingency table shown here, what is the probability that a student
attends a public school in a rural area?

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A .
. 2
3
8
B .
. 7
1
4
C .
. 1
3
5
D .
. 5
6
7

This is a marginal probability.

/
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

80. Given the contingency table shown here, if a randomly chosen student attends a
religious school, what is the probability the location is rural?

A .
. 1
4
2
B .
. 1
6
2
C .
. 1
6
7
D .
. 3
3

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This is a conditional probability: P(R | L) = 5/30 = .167.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

81. Given the contingency table shown here, if a randomly chosen student attends
school in an inner-city location, what is the probability that it is a public school?

A .
. 1
8
9
B .
. 3
3
3
C .
. 5
0
0
D .
. 5
6
7

This is a conditional probability: P(P | I) = 35/70 = .500.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

82. Given the contingency table shown here, find P(E).

A .
. 1
8
0
B .

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. 3
0
0
C .
. 5
2
9
D .
. 6
4
1

This is a marginal probability: P(E) = 300/1000 = .300.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

83. Given the contingency table shown here, find P(E | F).

A .
. 1
6
0
B .
. 3
0
0
C .
. 3
4
0
D .
. 5
3
3

This is a conditional probability: P(E | F) = 160/470 = .340.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

84. Given the contingency table shown here, find P(A∩M).

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A .
. 2
1
0
B .
. 3
6
0
C .
. 3
9
6
D .
. 5
8
3

This is a joint probability: P(A∩M) = 210/1000 = .210.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

85. Given the contingency table shown here, find P(F or G).

A .
. 1
6
0
B .
. 4
7
0
C .
. 6
5
0
D .
. 8
1
0

Use the General Law of Addition: P(F or G) = 470/1000 + 340/1000 - 160/1000.

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AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

86. Given the contingency table shown here, find the probability that a randomly
chosen individual is a female and economics major.

A .
. 34
04
B .
. 47
00
C .
. 16
00
D .
. 53
33
D

This is a joint probability: P(F and E) = 160/1000 = .16.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

87. Debbie has two stocks, X and Y. Consider the following events:

X = the event that the price of stock X has increased


Y = the event that the price of stock Y has increased
The event "the price of stock X has increased and the price of stock Y has not
increased" may be written as

A X
. ′∩
Y
B X
. or
Y′
C X
. ∩
Y′
D X
. or
Y

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This is a joint probability that also entails the notation for an event's complement.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 05-03 Apply the definitions and rules of probability.
Topic: Rules of Probability

88. If P(A | B) = 0.40 and P(B) = 0.30, find P(A∩B).

A .
. 1
7
1
B .
. 5
2
5
C .
. 5
7
1
D .
. 1
2
0

Use the definition for conditional probability.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-03 Apply the definitions and rules of probability.
Topic: Rules of Probability

89. A company is producing two types of ski goggles. Thirty percent of the production is
of type A, and the rest is of type B. Five percent of all type A goggles are returned
within 10 days after the sale, whereas only two percent of type B are returned. If a
pair of goggles is returned within the first 10 days after the sale, the probability that
the goggles returned are of type B is:

A .
. 0
1
4.
B .
. 1
4
0.
C .
. 0
7
0.
D .
. 4
8
3.

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Review Bayes' Theorem, and perhaps make a table or tree.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-08 Use Bayes' Theorem to calculate revised probabilities.
Topic: Bayes' Theorem

90. Given the contingency table shown here, find the joint probability that a call
sampled at random out of this population is local and 2-5 minutes long.

A .
. 50
00
B .
. 31
25
C .
. 40
00
D .
. 46
25

This is a joint probability. You must add the column frequencies.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

91. Given the contingency table shown here, if a call is sampled at random, find the
marginal probability that the call is long distance.

A .
. 37
50
B .
. 62
50
C .
. 40
00

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D 300/
. 500

You must first add the column frequencies.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

92. If a call is sampled at random, the conditional probability that the call is not "6+"
minutes long given that it is a long distance call is:

A 120/
. 300.
B 10/3
. 00.
C .
. 96
67.
D .
. 66
67.

Calculate the conditional probability 1 - 10/300 = .9667.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

93. The following table gives a classification of the 10,000 shareholders of Oxnard
Xylophone Distributors, Inc. A few numbers are missing from the table. Given that a
shareholder holding 500-999 shares is picked, there is a 0.625 probability that the
shareholder will be a woman. Consequently, what is the number of men holding
1000 or more shares?

A 1,
. 00
0
B 2
. 5

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0
C 7,
. 50
0
D 5
. 0
0

Multiply by the column total and subtract to fill in the remaining frequencies.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

94. In any sample space P(A | B) and P(B | A):

A are always equal to one


. another.
B are never equal to one
. another.
C are reciprocals of one
. another.
D are equal only if P(A) =
. P(B).

Use the definition of conditional probability.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 05-03 Apply the definitions and rules of probability.
Topic: Rules of Probability

95. If P(A∩B) = 0.50, can P(A) = 0.20?

A Only if P(A | B) =
. 0.10
B Not unless P(B) =
. 0.30
C Only if P(B∩A) =
. 0.60
D If P(A) = 0.20, then P(A∩B) cannot
. equal 0.50.

The given information contains a contradiction, because P(A∩B) cannot exceed P(A).

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-03 Apply the definitions and rules of probability.
Topic: Rules of Probability

96. The following relationship always holds true for events A and B in a sample space.

A P(A | B) = P(B

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. | A)
B P(A∩B) = P(A | B)
. P(B)
C P(A | B) = P(B | A)
. P(A)

Use the definition of conditional probability: P(A | B) = P(A∩B)/P(B).

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 3 Hard
Learning Objective: 05-03 Apply the definitions and rules of probability.
Topic: Rules of Probability

97. The following probabilities are given about events A and B in a sample space: P(A)
= 0.30, P(B) = 0.40, P(A or B) = 0.60. We can say that:

A P(A∩B) =
. 0.70.
B P(A) =
. P(A∩B).
C P(A∩B) =
. 0.10.
D A and B are independent
. events.

Apply the General Rule of Addition: P(A or B) = P(A) + P(B) - P(A∩B).

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-03 Apply the definitions and rules of probability.
Topic: Rules of Probability

98. If P(A) = 0.35, P(B) = 0.60, and P(A or B) = 0.70, then:

A A and B are mutually


. exclusive.
B P(A∩B)
. = .15.
C P(A∩B)
. = .25.
D P(A∩B)
. = .35.

Apply the General Rule of Addition: P(A or B) = P(A) + P(B) - P(A∩B).

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-03 Apply the definitions and rules of probability.
Topic: Rules of Probability

99. The following table shows the survival experience of 1,000 males who retire at age
65:

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Based on these data, the probability that a 75-year-old male will survive to age 80
is:

A 0.
. 59
6
B 1 - 0.596 =
. 0.404
C 1 - 0.775 =
. 0.225
D 0.
. 76
9

Given that 775 have survived to 75, the probability is 596 divided by 775.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-03 Apply the definitions and rules of probability.
Topic: Rules of Probability

100 Given the contingency table shown here, find P(G | M).
.

A .
. 18
00
B .
. 04
50
C .
. 33
33
D .
. 13
50

This is a conditional probability: P(G | M) = 18/54.

AACSB: Analytical Thinking


Blooms: Apply

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Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

101 Given the contingency table shown here, find P(V or S).
.

A .
. 38
25
B .
. 43
00
C .
. 04
75
D .
. 47
75

Use the General Rule of Addition: P(V or S) = 72/400 + 100/400 - 19/400.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

102 Given the contingency table shown here, find P(V | S).
.

A .
. 26
39
B .
. 19
00
C .
. 04
75
D .
. 41

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44

This is a conditional probability: P(V | S) = 19/100.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-06 Apply the concepts of probability to contingency tables.
Topic: Contingency Tables

103 The manager of Ardmore Pharmacy knows that 25 percent of the customers
. entering the store buy prescription drugs, 65 percent buy over-the-counter drugs,
and 18 percent buy both types of drugs. What is the probability that a randomly
selected customer will buy at least one of these two types of drugs?

A .
. 9
0
B .
. 8
5
C .
. 7
2
D .
. 6
5

Use the General Rule of Addition: P(A or B) = P(A) + P(B) - P(A∩B) = .25 + .65 - .18.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-03 Apply the definitions and rules of probability.
Topic: Rules of Probability

104 Two events are complementary (i.e., they are complements) if:
.

A the sum of their probabilities


. equals one.
B they are disjoint and their probabilities
. sum to one.
C the joint probability of the two events
. equals one.
D they are independent events with equal
. probabilities.

Review rules of probability.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 05-03 Apply the definitions and rules of probability.
Topic: Rules of Probability

105 Which statement is false?


.

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A If P(A) = .05, then the odds against event A's occurrence


. are 19 to 1.
B If A and B are mutually exclusive events, then P(A
. or B) = 0.
C The number of permutations of five things taken two at
. a time is 20.

Review rules of probability and counting rules.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-03 Apply the definitions and rules of probability.
Topic: Rules of Probability

106 The number of unique orders in which five items (A, B, C, D, E) can be arranged is:
.

A 5
. .
B 8
. 4
0
.
C 1
. 2
0
.
D 2
. 4
.

Apply rules of counting: 5 × 4 × 3 × 2 × 1 = 120.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-09 Apply counting rules to calculate possible event arrangements.
Topic: Counting Rules

107 If four items are chosen at random without replacement from seven items, in how
. many ways can the four items be arranged, treating each arrangement as a
different event (i.e., if order is important)?

A 3
. 5
B 8
. 4
0
C 5
. 0
4
0
D 2
. 4

This is 7P4.

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AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-09 Apply counting rules to calculate possible event arrangements.
Topic: Counting Rules

108 How many ways can we choose three items at random without replacement from
. five items (A, B, C, D, E) if the order of the selected items is not important?

A 6
. 0
B 1
. 2
0
C 1
. 0
D 2
. 4

This is 5C3.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-09 Apply counting rules to calculate possible event arrangements.
Topic: Counting Rules

109 The value of 6C2 is:


.

A 1
. 5
.
B 3
. 0
.
C 7
. 2
0
.
D 1
. 2
.

Apply the formula for combinations.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 05-09 Apply counting rules to calculate possible event arrangements.
Topic: Counting Rules

110 The value of 4P2 is:


.

A 8
. .
B 6
. .

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C 2
. 4
.
D 1
. 2
.

Apply the formula for permutations.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 05-09 Apply counting rules to calculate possible event arrangements.
Topic: Counting Rules

111 The probability that event A occurs, given that event B has occurred, is an example
. of:

A a marginal
. probability.
B a conditional
. probability.
C a joint
. probability.
D more than one of the
. above.

Review definition of conditional probability.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-03 Apply the definitions and rules of probability.
Topic: Rules of Probability

112 If each of two independent file servers has a reliability of 93 percent and either
. alone can run the website, then the overall website availability is:

A .
. 99
51.
B .
. 86
49.
C .
. 93
00.
D .
. 95
22.

Follow the textbook example of reliability for independent events.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 05-05 Determine when events are independent.

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Topic: Independent Events

113 In a certain city, 5 percent of all drivers have expired licenses, 10 percent have an
. unpaid parking ticket, and 1 percent have both an expired license and an unpaid
parking ticket. Are these events independent?

A N
. o
B Y
. e
s
C Can't tell from given
. information

For independence we would require P(A)P(B) = P(A∩B).

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-05 Determine when events are independent.
Topic: Independent Events

114 In a certain city, 5 percent of all drivers have expired licenses and 10 percent have
. an unpaid parking ticket. If these events are independent, what is the probability
that a driver has both an expired license and an unpaid parking ticket?

A .
. 0
1
0
B .
. 0
0
5
C .
. 0
0
1
D Cannot be
. determined

By independence P(A∩B) = P(A)P(B) = (.05)(.10).

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-05 Determine when events are independent.
Topic: Independent Events

115 If two events are collectively exhaustive, what is the probability that one or the
. other will occur?

A 1
. .
0
0
B 0
. .

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0
0
C 0
. .
5
0
D Can't tell from given
. information

Review definition of probabilities (collectively exhaustive covers all the possibilities).

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-03 Apply the definitions and rules of probability.
Topic: Rules of Probability

116 Which best exemplifies a subjective probability?


.

A The probability that a female age 30 will have an accident in a week's car
. rental at Hertz
B The probability that a pair of dice will come up 7 in a
. given throw
C The probability that the summer Olympic games will be held in
. Chicago in 2020
D The probability that a checked bag on Flight 1872 will weigh more
. than 40 pounds

Subjective probabilities are not based on empirical frequencies.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 05-02 Distinguish among the three views of probability.
Topic: Probability

117 Which best exemplifies the classical definition of probability?


.

A The probability that a male age 50 will have an accident in a week's car
. rental at Alamo
B The probability that a pair of dice will come up 7 when
. they are rolled
C The probability that the winter Olympic games will be held in
. Europe in 2022
D The probability that a checked bag on Flight 1872 will weigh more
. than 30 pounds

Classical probability is determined a priori by the nature of the experiment.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 05-02 Distinguish among the three views of probability.
Topic: Probability

118 Which best exemplifies the empirical definition of probability?


.

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A The probability that a Chinese athlete will win the diving competition in the
. next Olympics
B The probability that a fair coin will come up heads when
. it is flipped
C The probability that your own bank will become insolvent
. within 12 months
D The probability that a checked bag on Flight 1872 will weigh less
. than 30 pounds

Empirical probabilities are based on observed frequencies.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 05-02 Distinguish among the three views of probability.
Topic: Probability

119 From the following tree, find the probability that a randomly chosen person will get
. the flu vaccine and will also get the flu.

A .
. 1
0
B .
. 0
7
C .
. 1
9
D .
. 7
0

Multiply down the branch: .70 × .10 = .07.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-07 Interpret a tree diagram.
Topic: Tree Diagrams

120 From the following tree, find the probability that a randomly chosen person will not
. get a vaccination and will not get the flu.

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A .
. 1
8
B .
. 6
0
C .
. 1
9
D .
. 7
0

Multiply down the branch: .30 × .60 = .18.

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-07 Interpret a tree diagram.
Topic: Tree Diagrams

121 From the following tree, find the probability that a randomly chosen person will get
. the flu.

A .
. 1
9
B .
. 0
7
C .
. 8
1
D .
. 7

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Multiply down two branches and add .07 to .12. That is (.70)(.10) + (.30)(.40).

AACSB: Analytical Thinking


Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-07 Interpret a tree diagram.
Topic: Tree Diagrams

122 At Joe's Restaurant, 80 percent of the diners are new customers (N), while 20
. percent are returning customers (R). Fifty percent of the new customers pay by
credit card, compared with 70 percent of the regular customers. If a customer pays
by credit card, what is the probability that the customer is a new customer?

A .
. 74
07
B .
. 80
00
C .
. 54
00
D .
. 50
00

Review Bayes' Theorem, and perhaps make a table or tree.

AACSB: Analytical Thinking


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 05-08 Use Bayes' Theorem to calculate revised probabilities.
Topic: Bayes' Theorem

123 At Dolon General Hospital, 30 percent of the patients have Medicare insurance (M)
. while 70 percent do not have Medicare insurance (M´). Twenty percent of the
Medicare patients arrive by ambulance, compared with 10 percent of the non-
Medicare patients. If a patient arrives by ambulance, what is the probability that the
patient has Medicare insurance?

A .
. 70
00
B .
. 50
00
C .
. 46
15
D .
. 13
00

Review Bayes' Theorem, and perhaps make a table or tree.

AACSB: Analytical Thinking

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Accessibility: Keyboard Navigation


Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 05-08 Use Bayes' Theorem to calculate revised probabilities.
Topic: Bayes' Theorem

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