Finance

Q: At an oceanside nuclear power plant, seawater is used as part of the cooling system. This raises the temperature of the water that is discharged back into the ocean. The amount that the water temperature is raised has a uniform distribution over the interval from 10 to 25 C. What is the probability that the temperature increase will be between 20 and 22 C? A. 0.08 B. 0.88 C. 0.13 D. 0.20

Q: The average time an individual reads online national news reports is 49 minutes. Assume the standard deviation is 16 minutes and that the times are normally distributed. For the 10 percent who spend the most time reading national news online, how much time do they spend? A. > 11.72 B. > 28.52 C. > 86.28 D. > 69.48

Q: The average time an individual reads online national news reports is 49 minutes. Assume the standard deviation is 16 minutes and that the times are normally distributed. What is the probability someone will spend no more than 30 minutes reading online national news reports? A. .1170 B. .0301 C. .8830 D. .9699

Q: The average time an individual reads online national news reports is 49 minutes. Assume the standard deviation is 16 minutes and that the times are normally distributed. What is the probability someone will spend at least one hour reading online national news reports? A. .9987 B. .7549 C. .2451 D. .0013

Q: The weight of a product is normally distributed with a mean of 5 ounces. A randomly selected unit of this product weighs 7.1 ounces. The probability of a unit weighing more than 7.1 ounces is .0014. The production supervisor has lost files containing various pieces of information regarding this process, including the standard deviation. Determine the value of the standard deviation for this process. A. 1.67 B. 0.70 C. 2.10 D. 0.50

Q: The weight of a product is normally distributed with a standard deviation of .5 ounces. What should the average weight be if the production manager wants no more than 10 percent of the products to weigh more than 4.8 ounces? A. 3.52 B. 3.64 C. 5.44 D. 4.16

Q: The weight of a product is normally distributed with a standard deviation of .5 ounces. What should the average weight be if the production manager wants no more than 5 percent of the products to weigh more than 5.1 ounces? A. 4.278 B. 4.409 C. 3.455 D. 5.922

Q: The weight of a product is normally distributed with a mean of four ounces and a variance of .25 squared ounces. The company wants to classify the unit as a scrap in a maximum of 1 percent of the units if the weight is below a desired value. Determine the desired weight such that no more than 1 percent of the units are below it. A. 3.360 B. 3.680 C. 2.835 D. 3.418

Q: The weight of a product is normally distributed with a mean of four ounces and a variance of .25 squared ounces. What is the probability that a randomly selected unit from a recently manufactured batch weighs more than 3.75 ounces? A. .3085 B. .6915 C. .1587 D. .8413

Q: The weight of a product is normally distributed with a mean of four ounces and a variance of .25 squared ounces. What is the probability that a randomly selected unit from a recently manufactured batch weighs no more than 3.5 ounces? A. .8413 B. .9772 C. .1587 D. .0228

Q: The yearly proportional return for stock G = x, the yearly proportional return for stock H = y, x = .16, y = .07, x = .11,y = .11, and xy2 = .0321. Find the mean and standard deviation of the portfolio return: P = .5x + .5y.

Q: The yearly proportional return for stock G = x, the yearly proportional return for stock H = y, x = .16, y = .07, x = .11, y = .11, and xy2 = .0321. Find the mean and standard deviation of the portfolio return: P = .45x + .55y.

Q: Suppose you randomly select 3 DVDs from a production run of 10. Of the 10 DVDs, 9 are expected to last a minimum of 3 years. What values of x are within two standard deviations of the mean?

Q: Suppose you randomly select 3 DVDs from a production run of 10. Of the 10 DVDs, 9 are expected to last a minimum of 3 years. What is the standard deviation of the random variable x?

Q: Suppose you randomly select 3 DVDs from a production run of 10. Of the 10 DVDs, 9 are expected to last a minimum of 3 years. What is the mean of the random variable x?

Q: Suppose you randomly select 3 DVDs from a production run of 10. Of the 10 DVDs, 9 are expected to last a minimum of 3 years. What is the probability that all 3 of your DVDs will last at least three years?

Q: If in a hypergeometric distribution r = 300, N = 600, and n = 30, estimate the binomial probability of success. A. 0.500 B. 0.333 C. 0.083 D. 0.250

Q: Suppose that x has a hypergeometric distribution with N = 10, r = 5, and n = 3. Calculate the standard deviation of the distribution. A. 0.583 B. 0.764 C. 1.500 D. 0.778

Q: Suppose that x has a hypergeometric distribution with N = 10, r = 5, and n = 3. Calculate the mean of the distribution. A. 0.500 B. 0.333 C. 1.500 D. 3.000

Q: A large disaster cleaning company estimates that 30 percent of the jobs it bids on are finished within the bid time. Looking at a random sample of 8 jobs that it has contracted, find the probability that x (number of jobs finished on time) is within one standard deviation of the mean. A. .6867 B. .7483 C. .5506 D. .8844

Q: A large disaster cleaning company estimates that 30 percent of the jobs it bids on are finished within the bid time. Looking at a random sample of 8 jobs that it has contracted, calculate the mean number of jobs completed within the bid time. A. 4.0 B. 2.4 C. 2.0 D. 5.6

Q: A large disaster cleaning company estimates that 30 percent of the jobs it bids on are finished within the bid time. Looking at a random sample of 8 jobs that it has contracted, calculate the probability that exactly 4 of the jobs were not completed within the bid time. A. .0081 B. .2401 C. .0113 D. .1361

Q: An insurance company will insure a $75,000 particular automobile make and model for its full value against theft at a premium of $1500 per year. Suppose that the probability that this particular make and model will be stolen is 0.0075. Find the premium that the insurance company should charge if it wants its expected net profit to be $2000. A. $1437.50 B. $2551.25 C. $2562.50 D. $2062.50

Q: An insurance company will insure a $75,000 particular make and model of car for its full value against theft at a premium of $1500 per year. Suppose that the probability that this particular automobile make and model will be stolen is 0.0075. Calculate the expected net profit for the insurance company. A. $937.50 B. $551.25 C. $1488.75 D. $562.50

Q: A car wash loses $30 on rainy days and makes $120 on days when it does not rain. If the probability of rain is 0.15, calculate expected profit for the car wash. A. $90 B. $76.50 C. $106.50 D. $97.50

Q: The Post Office has established a record in a major midwestern city for delivering 90 percent of its local mail the next working day. When there are 8 local letters mailed, what is the probability that the number delivered will be within 2 standard deviations of the mean? A. .9950 B. .9619 C. .8131 D. .9996

Q: The Post Office has established a record in a major midwestern city for delivering 90 percent of its local mail the next working day. Calculate the standard deviation of the number delivered when 8 local letters are mailed. A. .85 B. .72 C. 2.68 D. 2.83

Q: The Post Office has established a record in a major midwestern city for delivering 90 percent of its local mail the next working day. If you mail eight local letters, what is the average number you expect to be delivered the next day? A. 3.6 B. 4.0 C. 7.2 D. 2.7

Q: The Post Office has established a record in a major midwestern city for delivering 90 percent of its local mail the next working day. If you mail eight local letters, what is the probability that all of them will be delivered the next day? A. 1.0 B. .4305 C. .8131 D. .5695

Q: An important part of the customer service responsibilities of a cable company is the speed with which trouble in service can be repaired. Historically, the data show that the likelihood is 0.75 that troubles in a residential service can be repaired on the same day. For the first five troubles reported on a given day, find the mean number of troubles repaired on the same day. A. 3.75 B. 0.94 C. 1.94 D. 2.50

Q: An important part of the customer service responsibilities of a cable company is the speed with which trouble in service can be repaired. Historically, the data show that the likelihood is 0.75 that troubles in a residential service can be repaired on the same day. For the first five troubles reported on a given day, what is the probability that at least three troubles will be repaired on the same day? A. .1035 B. .0376 C. .9624 D. .8965

Q: An important part of the customer service responsibilities of a cable company is the speed with which trouble in service can be repaired. Historically, the data show that the likelihood is 0.75 that troubles in a residential service can be repaired on the same day. For the first five troubles reported on a given day, what is the probability that fewer than two troubles will be repaired on the same day? A. .6328 B. .0010 C. .0156 D. .0146

Q: An important part of the customer service responsibilities of a cable company is the speed with which trouble in service can be repaired. Historically, the data show that the likelihood is 0.75 that troubles in a residential service can be repaired on the same day. For the first five troubles reported on a given day, what is the probability that all five will be repaired on the same day? A. .0010 B. .6328 C. .9990 D. .2373

Q: The internal auditor for your company believes that 10 percent of your invoices contain errors. To check this theory, 20 invoices are randomly selected, and 5 are found to have errors. What is the probability that of the 20 invoices selected, 5 or more would contain errors if the theory is valid? A. .0433 B. .0319 C. .9567 D. .8660

Q: A lawyer believes that the probability is .3 that she can win a discrimination suit. If she wins the case, she will make $400,000; but if she loses, she gets nothing. Assume that she has to spend $75,000 preparing the case. What is her expected gain? A. $325,000 B. $45,000 C. $150,000 D. $22,500

Q: According to data from the state blood program, 40 percent of all individuals have group A blood. Suppose that of six randomly selected individuals, three have group A blood. Would you believe the data from the state blood program?A. Yes, probability is > .05.B. Yes, probability is < .05.C. No

Q: According to data from the state blood program, 40 percent of all individuals have group A blood. If six individuals give blood, find the mean number of individuals having group A blood. A. 1.2 B. 1.55 C. 1.44 D. 2.4

Q: According to data from the state blood program, 40 percent of all individuals have group A blood. If six individuals give blood, find the probability that at least 3 of the individuals have group A blood. A. .8208 B. .5443 C. .4557 D. .1792

Q: According to data from the state blood program, 40 percent of all individuals have group A blood. If six individuals give blood, find the probability that exactly three of the individuals have group A blood. A. .4000 B. .2765 C. .5875 D. .0041

Q: According to data from the state blood program, 40 percent of all individuals have group A blood. If six individuals give blood, find the probability that none of the individuals has group A blood. A. .0041 B. .0410 C. .4000 D. .0467

Q: A pharmaceutical company has determined that if a new cholesterol-reducing drug is manufactured (introduced to the market), the following probability distribution will describe the contribution of this drug to their profits during the next six months.The company management has decided to market this product if the expected contribution to profit for the next six months is more than $1,000,000. Based on the information given above, should the company begin manufacturing the new drug?Explain your answer.A. Yes, begin manufacturing.B. No, do not begin manufacturing.

Q: If you were asked to play a game in which you tossed a fair coin three times and were given $2 for every head you threw, how much would you expect to win on average? A. $3 B. $2 C. $6 D. $9

Q: Consider the experiment of tossing a fair coin three times and observing the number of heads that result (X = number of heads). What is the standard deviation for this distribution? A. 1.5 B. 1.22 C. 0.75 D. 0.87

Q: Consider the experiment of tossing a fair coin three times and observing the number of heads that result (X = number of heads). What is the variance for this distribution? A. 1.5 B. 1.22 C. 0.75 D. 0.87

Q: Consider the experiment of tossing a fair coin three times and observing the number of heads that result (X = number of heads). Determine the expected number of heads. A. 1.5 B. 1.0 C. 2.0 D. 1.1

Q: Historical data for a local manufacturing company show that the average number of defects per product produced is 2. In addition, the number of defects per unit is distributed according to a Poisson distribution. Determine the standard deviation of the number of defects for 32 units. A. 2 B. 32 C. 64 D. 8

Q: Historical data for a local manufacturing company show that the average number of defects per product produced is 2. In addition, the number of defects per unit is distributed according to a Poisson distribution. A batch has just been completed. What is the probability that the first three units manufactured in this batch will contain at least a total of 4 defects? A. .8488 B. .7149 C. .1512 D. .2851

Q: Historical data for a local manufacturing company show that the average number of defects per product produced is 2. In addition, the number of defects per unit is distributed according to a Poisson distribution. What is the probability that there will be a total of 7 defects on four units? A. .8750 B. .1221 C. .0573 D. .1396

Q: X has the following probability distribution P(X). Compute the variance value of X. A. 1.58 B. .955 C. .912 D. .625

Q: X has the following probability distribution P(X). Compute the expected value of X. A. 2.5 B. 1.0 C. 1.6 D. 0.6

Q: X has the following probability distribution. Compute the expected value of X. A. 1.3 B. 1.0 C. 2.4 D. 1.8

Q: One die is thrown. What is the expected value of the number of dots on the top face of the die? A. 1.0 B. 3.5 C. 4.0 D. 3.0

Q: Consider a Poisson distribution with an average of 3 customers per minute at the local grocery store. If X = the number of arrivals per minute, find the probability of 3 customers arriving within a minute. A. 1.00 B. .1494 C. .224 D. .3734

Q: Consider a Poisson distribution with an average of 3 customers per minute at the local grocery store. If X = the number of arrivals per minute, find the probability of more than 7 customers arriving within a minute. A. .0216 B. .0081 C. .0108 D. .0118

Q: Consider a Poisson distribution with an average of 3 customers per minute at the local grocery store. If X = the number of arrivals per minute, find the probability of 10 customers or fewer arriving within a minute. A. .9998 B. .9990 C. .0008 D. .0498

Q: Consider a Poisson distribution with an average of 4 customers per minute at the local grocery store. If X = the number of arrivals per minute, find the standard deviation of X. A. 2 B. 4 C. 16 D. 1.5

Q: Consider a Poisson distribution with an average of 3 customers per minute at the local grocery store. If X = the number of arrivals per minute, find the variance of X. A. 3 B. 9 C. 1.5 D. 1.7

Q: Consider a Poisson distribution with an average of 3 customers per minute at the local grocery store. If X = the number of arrivals per minute, find the expected value of X. A. 3 B. 9 C. 1.5 D. 1.7

Q: Consider a Poisson distribution with an average of 3 customers per minute at the local grocery store. Determine the expected number of customer arrivals for a five-minute period. A. 15 B. 3 C. 243 D. 125

Q: For a binomial process, the probability of success is 40 percent and the number of trials is 5. Find P(X > 4). A. .0102 B. .0778 C. .0870 D. .3370

Q: For a binomial process, the probability of success is 40 percent and the number of trials is 5. Find P(X 1). A. .0870 B. .2592 C. .0778 D. .3370

Q: For a binomial process, the probability of success is 40 percent and the number of trials is 5. Find the standard deviation. A. 5.0 B. 1.2 C. 2.0 D. 1.1

Q: For a binomial process, the probability of success is 40 percent and the number of trials is 5. Find the variance. A. 5.0 B. 1.2 C. 2.0 D. 1.1

Q: For a binomial process, the probability of success is 40 percent and the number of trials is 5. Find the expected value. A. 5.0 B. 1.2 C. 2.0 D. 1.1

Q: During off hours, cars arrive at a tollbooth on the East-West toll road at an average rate of 0.5 cars per minute. The arrivals are distributed according to a Poisson distribution. What is the probability that during the next five minutes, three cars will arrive? A. .2138 B. .1804 C. .0126 D. .0613

Q: During off hours, cars arrive at a tollbooth on the East-West toll road at an average rate of 0.5 cars per minute. The arrivals are distributed according to a Poisson distribution. What is the probability that during the next minute, three cars will arrive? A. .0758 B. .1255 C. .0126 D. .0613

Q: Determine the probability that a 3 will appear twice, if a single fair die is rolled 10 times. A. .5010 B. .2907 C. .2318 D. .0065

Q: Twenty coins are tossed. What is the probability of getting exactly 10 heads? A. .3364 B. .1602 C. .5000 D. .1762

Q: If x is a Poisson random variable with a mean of 10, what is the probability that x is equal to 8? A. .1126 B. .1251 C. .2677 D. .0993

Q: If x is a Poisson random variable with a mean of 10, what is the probability that x is greater than or equal to 2? A. .9972 B. .0028 C. .9995 D. .0005

Q: A test has 6 multiple choice questions, each with 4 alternatives. What is the probability of guessing 5 or more questions correctly? A. .5340 B. .4660 C. .9954 D. .0046

Q: Three candidates run for different offices in different cities. Each has a one in three chance of being elected in his/her city. What is the probability that at least one of them will be elected? A. .2963 B. .7037 C. .33 D. .667

Q: If x is a Poisson random variable with a mean of 10, what is the probability that x is greater than 6? A. .9329 B. .7797 C. .8698 D. .0002

Q: The number of calls coming into a call center follows a Poisson process with a mean of 120 calls per hour. What is the probability of no calls in a one-minute interval? A. 0 B. .1353 C. .4060 D. .3679

Q: If the probability of a success on a single trial is .2, what is the probability of obtaining 3 successes in 10 trials if the number of successes is binomial? A. .0031 B. .5033 C. .1074 D. .2013

Q: A vaccine is 95 percent effective. What is the probability that it is not effective for more than 1 out of 20 individuals? A. .7359 B. .3585 C. .2641 D. .3774

Q: A vaccine is 95 percent effective. What is the probability that it is not effective for 1 and only 1 individual out of 20 individuals? A. .0179 B. .3585 C. .0189 D. .3774

Q: Assume the number of trucks passing an intersection has a Poisson distribution with a mean of 5 trucks per minute. What is the probability of 0 or 1 trucks in one minute? A. .0404 B. .0337 C. .0842 D. .0067

Q: The probability distribution of X isWhat is the variance of X?A. 2.25B. 1.0C. 2.24D. 5.0E. 2.25F. 2.24

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