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1. Which of the following are required conditions for the distribution of a discrete random variable X that can assume values xi?
A.

0 p(xi) 1

for all xi

B.

p(x ) =1
i

all xi

C.

Both a and b are required conditions.

D.

Neither a nor b are required conditions.

2. The joint probability distribution of random variables X and Y is given by for f ( x, y ) = k x y , x = 1, 2,3, y = 1, 2,3, and k is a positive constant. What is
the probability that X + Y will exceed 5?
A. 1/4.
C. 1/36.

B.
D.

1/9.
Cannot be determined.

3. In the notation below, X is the random variable, c is a constant, and V refers to the variance. Which of the following laws of variance is not true?
A.
C.

0 p(xi) 1
V(cX) = c2 V(X)

for all xi

B.
D.

V(X + c) = V(X) + c
None of these choices.

4. If X and Y are any random variables with E(X) = 5, E(Y) = 6, E(XY) = 21, V(X) = 9 and V(Y) = 10, then the relationship between X and Y is a:
A. strong positive relationship
B. strong negative relationship
C. weak positive relationship
D. weak negative relationship

5. According to a survey of adults, 64% have money in a regular savings account. If we plan on surveying 50 randomly selected adults, find the mean number
of adults who would have regular savings accounts.
A. 12
B. 22
C. 32
D. 42

6. If p = 0.1 and n = 10, then the corresponding binomial distribution is


A. Skewed to the right.
C. Symmetric.

B.
D.

Skewed to the left.


Bimodal.

7. The Securities and Exchange Commission has determined that the number of companies listed in NYSE declaring bankruptcy is approximately a Poisson
distribution with a mean of 2.6 per month. Find the probability that more than 1 bankruptcy occur next month
A. 0.1414
B. 0.1931
C. 0.4816
D. 0.7326

8. Which of the following is true about f(x) when X has a uniform distribution over the interval [a, b]?
A. The values of f(x) are different for various values of the random
B. f(x) equals one for each possible value of X.
variable X.
C. f(x) equals one divided by the length of the interval from a to b.
D. None of these choices.

9. A study shows that employees that begin their work day at 9:00 a.m. vary their times of arrival uniformly from 8:40 a.m. to 9:30 a.m. The probability that a
randomly chosen employee reports to work between 9:00 and 9:10 is:
A. 10%
B. 20%
C. 30%
D. 40%

10. The mean life of pair of shoes is 40 months with a standard deviation of 8 months. If the life of the shoes is normally distributed, how many pairs of shoes
out of one million will need replacement before 36 months?
A. 191,500
B. 308,500
C. 500,000
D. 808,500

11. Stacy took a math test whose mean was 70 and standard deviation was 5. The total points possible was 100. Stacey's results were reported to be at the 95th
percentile. What was Stacey's actual exam score, rounded to the nearest whole number?
A. 95
B. 78
C. 75
D. 62

12. The cashier service time at the local branch of the Rivertown bank has an exponential distribution with a mean of 2.5 minutes. What is the probability that
the service time: Exceeds 3 minutes?
A. 0.3012
B. 0.3297
C. 0.6703
D. 0.6988

13. If the parameter of an exponential distribution is 1, then which of the following is not true?
A.
C.

The density function is ex for x 0.


The standard deviation and variance are both equal to 1.

B.
D.

The mean is equal to 1.


All of these choices are true.

14. When every possible sample with the same number of observations is equally likely to be chosen, the result is called a:
A. biased sample.
B. simple random sample.
C. cluster sample.
D. stratified random sample.

15. Which of the following is an example of a nonsampling error?


A. Some incorrect responses are recorded.
C. Some members of the target population cannot possibly be selected for
the sample.

16. The standard deviation of the sampling distribution of


A. central limit theorem.
C. finite population correction factor.

B.
D.

Responses are not obtained from all members of the sample.


All of these choices are true.

B.
D.

central limit theorem.


standard error of the sample mean.

is also called the:

17. Heights of fences are normally distributed with a mean of 52 inches and a standard deviation of 4 inches. Find the probability that the mean height of 4
randomly selected fences is under 54 inches.
A. 0.4782
B. 0.6915
C. 0.8413
D. None of these choices.

18. A sample of 250 observations is selected at random from an infinite population. Given that the population proportion is 0.25, the standard error of the
sampling distribution of the sample proportion is:
A. 0.0274
B. 0.5000
C. 0.0316
D. 0.0548

19. A DVD rental store wants to know what proportion of its customers are under age 21. A simple random sample of 500 customers was taken. Presume that
the true population proportion of customers under age 21 is 0.68. What is the probability that the sample proportion
of customers who are under age 21?
A. 0.2052
B. 0.9911
C. 0.8502
D. 0.0749

20. If two populations are normally distributed, the sampling distribution of the difference in the sample means,
A.
C.

approximately normal for any sample sizes.


exactly normal only if both sample sizes are large.

B.
D.

is within 0.03 of the true proportion

, is:

approximately normal if both sample sizes are large.


exactly normal for any sample sizes.

21. A temporary worker productivity is normally distributed. One worker produces an average of 84 units per day with a standard deviation of 24. Another
worker produces at an average rate of 74 per day with a standard deviation of 25. What is the probability that during one week (5 working days), worker 1
will outproduce worker 2 on average?
A. 0.6141
B. 0.7054
C. 0.7422
D. 0.8749

22. An unbiased estimator of a population parameter is defined as:


A. an estimator whose expected value is equal to the parameter.
C. an estimator whose expected value is equal to zero.

B.
D.

an estimator whose variance is equal to one.


an estimator whose variance goes to zero as the sample size goes to
infinity.

23. Which of the following is not a part of the formula for constructing a confidence interval estimate of the population mean?
A. A point estimate of the population mean.
B. The standard error of the sampling distribution of the sample mean.
C. The confidence level.
D. The value of the population mean.

24. Suppose that the amount of time teenagers spend playing computer games per week is normally distributed with a standard deviation of 1.5 hours. A
sample of 300 teenagers is selected at random, and the sample mean computed as 6.5 hours. Determine the lower confidence limit (LCL) and the upper
confidence limit (UCL) of the population mean. (confidence level = 95% )
A. LCL = 6.21 and UCL = 6.79 (hours per week)
B. LCL = 6.25 and UCL = 6.75 (hours per week)
C. LCL = 6.26 and UCL = 6.74 (hours per week)
D. LCL = 6.33 and UCL = 6.67 (hours per week)

25. The sample size needed to estimate a population mean within 2 units with a 95% confidence when the population standard deviation equals 8 is
A. 60
B. 61
C. 62
D. None of these choices.

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