QUESTION 1

1. If the random variableX is normally distributed with a mean of 75 and a standard deviation of 8, then P(X ? 78) is:

a.

0.15

b.

0.65

c.

0.75

d.

0.98

e.

None of the above

0.5 points

QUESTION 2

1. Dr. Ho has asked his nurse to call each patient a week before their bill is due. As a result of time constraints, however, only 60% of patients receive such a call from his nurse. Of the patients called, 90% pay on time, while only 30% of those not called pay on time. Dr. Ho has just received a payment on time from a patient.

What is the probability that the nurse didnot call this patient?

a.

0.73

b.

0.54

c.

0.27

d.

0.18

e.

None of the above

0.5 points

QUESTION 3

1. Jerry calls people and tries to sell them an auto insurance policy. On 40% of his calls, there is no answer or the line is busy. He sells the auto insurance policy to 5% of the remaining calls. For what proportion of calls does he make a sale?

a.

0.02

b.

0.03

c.

0.04

d.

0.05

e.

None of the above

0.5 points

QUESTION 4

1. A portfolio is composed of two shares. The following parameters associated with the returns of the two shares are given.

Share

1

2

Proportion of portfolio

45%

55%

Mean

0.10

0.20

Standard deviation

0.02

0.15

2.

3. The mean return of the portfolio is:

a.

0.10

b.

0.16

c.

0.26

d.

0.36

e.

None of the above

0.5 points

QUESTION 5

1. Which of the following statements is true?

a.

The median is a better measure of centre than the mean when the distribution is symmetric.

b.

In a histogram, the proportion of the total area to the left of the median is less than 50%.

c.

Both data sets will have the same variance when two data sets have the same range.

d.

Leading questions must be avoided in designing a questionnaire.

e.

Pie charts can only be used for nominal data.

0.5 points

QUESTION 6

1. Suppose P(A) = 0.10, P(B) = 0.75, and P(B|A) = 0.80. Find P(A B) is:

a.

0.08

b.

0.11

c.

0.72

d.

0.77

e.

None of the above

0.5 points

QUESTION 7

1. Which of the following statements is true?

a.

Age is an example of a continuous random variable

b.

For a continuous probability distribution to be valid, the probabilities must lie between minus infinity and infinity, where the sum of all probabilities must be 1

c.

Events A and B are considered to be independent when P(A?B) = 0

d.

Two events A and B are mutually exclusive when P(A|B) = P(A) + P(B)

e.

None of the above

0.5 points

QUESTION 8

1. Which of the following statements about the binomial probability distribution is (are) true?

a.

The binomial probability distribution is a continuous probability distribution.

b.

Each trial in a binomial experiment has at least 2 possible outcomes

c.

The outcome of one trial can affect the outcomes of any other trials

d.

There are two parameters for a binomial probability distribution

e.

None of the above

0.5 points

QUESTION 9

1. Which of the following is always true for all probability density functions of continuous random variables?

a.

They are symmetrical

b.

The probability can take any value

c.

The probability that X will take any specific value is always greater than zero

d.

where p(x) is a probability density function

e.

None of the above

0.5 points

QUESTION 10

1. Four PhD graduates are applying for a lectureship position in a college. The four applicants are Adam, Bob, Charles and Derek. Employing the subjective approach, Jerry has assigned the following probabilities that these applicants will be hired:

P(Adam) = 0.41

P(Bob) = 0.10

P(Charles) = 0.27

P(Derek) = 0.22

The probability that either Bob or Charles are hired is:

a.

0.10

b.

0.17

c.

0.27

d.

0.37

e.

None of the above