1) "Bob didn't wear his lucky T-shirt to class, so he failed his chemistry exam.

" This best illustrates which

fallacy?
A) Small sample generalization B) Poor survey methods
C) Post hoc reasoning D) More than one of the above

2) Which is least likely to be regarded as a ratio variable?

A) A critic's rating of a restaurant on a 1 to 4 scale
B) Automobile exhaust emission of nitrogen dioxide (milligrams per mile)
C) Number of customer complaints per day at a cable TV company office
D) Cost of an eBay purchase

3) Thirty work orders are selected from a filing cabinet containing 500 work order folders by choosing every
15th folder. Which
sampling method is this?
A) Simple random sample B) Systematic sample
C) Stratified sample D) Cluster sample

4) A population has groups that have a small amount of variation within them, but large variation among or
between the groups themselves. The proper sampling technique is
A) simple random. B) stratified.
C) cluster. D) judgment.

5) Which is not revealed on a scatter plot?

A) Pairs of observed (xi, yi) data values
B) Nonlinear relationships between X and Y
C) Missing data values due to nonresponses
D) Unusual data values (outliers)

6) Bob found an error in the following frequency distribution. What is it?

Class Frequency
1–10 2
11–20 6
25–30 8
31–40 12
44–50 6
A) The class limits are overlapping too much.
B) The classes are not collectively exhaustive.
C) There are too many classes by Sturges' Rule.
D) The first class must start at 0.

7) The following table is the frequency distribution of parking fees for a day:
Fee (dollars) Number of Garages
6.00 < 6.50 5
6.50 < 7.00 8
7.00 < 7.50 10
7.50 < 8.00 7
What is the mean parking fee?
A) $7.07 B) $6.95 C) $7.00 D) $7.25
8) A population is of size 5,500 observations. When the data are represented in a relative frequency
distribution, the relative frequency of a given interval is 0.15. The frequency in this interval is equal to
A) 4,675 B) 800 C) 675 D) 825
9) Below is a sorted stem-and-leaf diagram for the measured speeds (miles per hour) of 49 randomly chosen
vehicles on highway I-80
in Nebraska. What is the mode?
Stem unit = 10
Leaf unit = 1
Frequency Stem Leaf
149
155
17 6 0 1 2 2 2 4 5 5 5 5 6 6 8 8 9 9 9
19 7 0 1 1 1 2 3 3 3 4 5 6 6 6 7 7 8 9 9 9
780133557
490122
49
A) 62 B) 79 C) 65 D) Impossible to tell

10) This histogram shows Chris's golf scores in his last 77 rounds at Devil's Ridge. Which is not a correct
statement?
A) The number of bins is consistent with Sturges' Rule.
B) The histogram has a noticeable bimodal shape.
C) The modal class is 78 < 80.
D) About 15 percent of his scores are in the interval 74 < 76

11) VenalCo Market Research surveyed 50 individuals who recently purchased a certain CD, revealing the age
distribution shown below. Which statement is least defensible?

A) The mean age probably exceeds the median age.

B) The mode would be a reasonable measure of center.

C) The data are somewhat skewed to the left.

D) The CD is unlikely to appeal to retirees.

12) In the following data set {7, 5, 0, 2, 7, 15, 5, 2, 7, 18, 7, 3, 0}, the value 7 is
A) the mean. B) the mode.
C) both the mode and median. D) both the mean and mode.
13) The heights of male students in a certain statistics class range from Xmin = 61 to Xmax = 79. Applying the
Empirical Rule, a reasonable estimate of σ would be
A) 2.75 B) 3.00 C) 3.25 D) 3.50
14) The midhinge lies halfway between
A) xmin and xmax. B) Q1 and Q3.
C) the mean and the median. D) the inner fences.
15) Chebyshev's Theorem
A) applies to all samples.
B) applies only to samples from a normal population.
C) gives a narrower range of predictions than the Empirical Rule.
D) is based on Sturges' Rule for data classification.
16) Exam scores in a random sample of students were 0, 50, 50, 70, 70, 80, 90, 90, 90, 100. Which statement is
incorrect?
A) The standard deviation is 29.61.
B) The data are slightly left-skewed.
C) The midrange and mean are almost the same.
D) The third quartile is 90.
17) As a measure of variability, compared to the range, an advantage of the standard deviation is that it
A) is calculated easily through the use of a formula.
B) considers only the data values in the middle of the data array.
C) describes the distance between the highest and lowest values.
D) considers all data values.

18) Shown the spending by a sample of 50 breakfast customers of McDonald's. Which statement is least likely
to be correct?
A) The median is very close to the midhinge.
B) The median purchase is slightly less than $5.
C) About 75 percent of the customers spend less than $7.
D) The mean is a reasonable measure of center.
19) The 25th percentile for waiting time in a doctor's office is 19 minutes. The 75th percentile is 31 minutes.
Which is incorrect regarding the fences?
A) The upper inner fence is 49 minutes.
B) The upper outer fence is 67 minutes.
C) A waiting time of 45 minutes exceeds the upper inner fence.
D) A waiting time of 70 minutes would be an outlier.

20) Frieda is 67 inches tall and weighs 135 pounds. Women her age have a mean height of 65 inches with a
standard deviation of 2.5 inches and a mean weight of 125 pounds with a standard deviation of 10 pounds. In
relative terms, it is correct to say that
A) Frieda is taller and thinner than women in her age group.
B) for this group of women, weight has greater variation than height.
C) Frieda's height is more unusual than her weight.
D) the variation coefficient exceeds 10 percent for both height and weight.
21) What does the graph below (profit/sales ratios for 25 Fortune 500 companies) reveal?
A) That the median exceeds the mean.
B) That the data are slightly left-skewed.
C) That the interquartile range is about 8.
D) That the distribution is bell-shaped.
22) 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) .67 B) .79 C) .22 D) .43

25) 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
26) The following probabilities are given about events A and B in a sample space: P(A) = .30, P(B) = .40, P(A or
B) = .60. We can say that
A) P(A ∩ B) = .70. B) P(A) = P(A ∩ B).
C) P(A ∩ B) = .10. D) A and B are independent events.
27) 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) .7000 B) .5000 C) .4615 D) .1300
29) 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) .7407 B) .8000 C) .5400 D) .5000
30) 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) .010 B) .005 C) .001 D) Cannot be determined
31) 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. Binomial
A) .0050 B) .0331 C) .9950 D) .9619
32) On average, a major earthquake (Richter scale 6.0 or above) occurs 3 times a decade in a certain California
county. Find the probability that at least 1 major earthquake will occur within the next decade.
A) .7408 B) .1992 C) .1494 D) .9502
33) 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
34) The probability that a rental car will be stolen is .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
35) 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) Hypergeometric C) Binomial D) Uniform
36) 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) Hypergeometric D) Geometric
37) 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
38) 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

39) 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?

X0 1 2 3 Total

P(X) .40 .30 .20 .10 1.00

A) 1.2 B) 1.0 C) 1.5 D) 2.0

40) 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?

X0 1 2 3 Total

P(X) .40 .30 .20 .10 1.00

A) .30 B) .40 C) .50 D) .60

41) The binomial distribution is symmetrical when

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.

42) 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

43) 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.

44) 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

45) 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

46) 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

47) 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 before you get the first interview? (khi nào thấy until the first thì
1/probability)

A) 5 B) 7 C) 10 D) 12

48) 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.

49) 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

50) 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) −10 D) −6
51) In Melanie's Styling Salon, the time to complete a simple haircut is normally distributed with a mean of 25
minutes and a standard deviation of 4 minutes. The slowest quartile of customers will require more than how
many minutes for a simple haircut?

A) 3(n + 1)/4 minutes

B) 26 minutes

C) 25.7 minutes

D) 27.7 minutes

52) A student's grade on an examination was transformed to a z value of 0.67. Assuming a normal distribution,
we know that she
scored approximately in the top
A) 15 percent.
B) 50 percent.
C) 40 percent.
D) 25 percent.
53) A large number of applicants for admission to graduate study in business are given an aptitude test. Scores
are normally distributed
with a mean of 460 and standard deviation of 80. The top 2.5 percent of the applicants would have a score of
at least (choose the
nearest integer)
A) 606
B) 617
C) 600
D) 646
54) If the mean time between in-flight aircraft engine shutdowns is 12,500 operating hours, the 90th percentile
of waiting times to the
next shutdown will be
A) 20,180 hours.
B) 28,782 hours.
C) 23,733 hours.
D) 18,724 hours.
55) A software developer makes 175 phone calls to its current customers. There is an 8 percent chance of
reaching a given customer
(instead of a busy signal, no answer, or answering machine). The normal approximation of the probability of
reaching at least 20
customers is
A) .022
B) .007
C) .063
D) .937

1) Because 25 percent of the students in my morning statistics class watch eight or more hours of
television a week, I conclude that 25
percent of all students at the university watch eight or more hours of television a week. The most
important logical weakness of this
conclusion would be
A) relying on a sample instead of surveying every student.
B) using a sample that may not be representative of all students.
C) failing to correct for unconscious interviewer bias.
D) assuming cause and effect where none exists.
2) Quantitative variables use which two levels of measurement?
A) Ordinal and ratio
B) Interval and ordinal
C) Nominal and ordinal
D) Interval and ratio

3) From its 32 regions, the FAA selects 6 regions, and then randomly audits 25 departing commercial
flights in each region for
compliance with legal fuel and weight requirements. This is an example of
A) simple random sampling.
B) stratified random sampling.
C) cluster sampling.
D) judgment sampling.

4) The Centers for Disease Control and Prevention (CDC) wants to estimate the average extra
hospital stay that occurs when heart surgery patients experience postoperative atrial fibrillation. They
divide the United States into nine regions. In each region, hospitals are selected at random within
each hospital size group (small, medium, large). In each hospital, heart surgery patients are sampled
according to known percentages by age group (under 50, 50 to 64, 65 and over) and gender (male,
female). This procedure combines which sampling methods?
A) Systematic, simple random, and convenience
B) Convenience, systematic, and judgment
C) Cluster, stratified, and simple random
D) Judgment, systematic, and simple random

5) Which data would be suitable for a pie chart?

A) Percent vote in the last election by party (Democrat, Republican, Other)
B) Retail prices of six major brands of color laser printers
C) Labor cost per vehicle for 10 major world automakers
D) Prices paid by 10 students for their accounting textbooks

7) Exam scores in a small class were 0, 50, 50, 70, 70, 80, 90, 90, 100, 100. For this data set, which
statement is incorrect concerning
measures of center?
A) The median is 70.
B) The mode is not helpful.
C) The geometric mean is useless.
D) The mean is 70.

8) John scored 35 on Prof. Johnson's exam (Q1 = 70 and Q3 = 80). Based on the fences, which is
correct?
A) John is unusual but not an outlier.
B) John is an outlier.
C) John is neither unusual nor an outlier.
D) John is in the 30th percentile.

9) Frieda is 67 inches tall and weighs 135 pounds. Women her age have a mean height of 65 inches
with a standard deviation of 2.5 inches and a mean weight of 125 pounds with a standard deviation of
10 pounds. In relative terms, it is correct to say that
A) Frieda is taller and thinner than women in her age group.
B) for this group of women, weight has greater variation than height.
C) Frieda's weight is more unusual than her height.
D) the variation coefficient exceeds 10 percent for both height and weight.
Answer: C
Explanation: Calculate the z-scores for Frieda's weight and Frieda's height. For Frieda's height,
z = (x − μ)/σ = (67 − 65)/(2.5) = 0.80, while for Frieda's weight, z = (x − μ)/σ = (135 − 125)/10 = 1.00.
Therefore, Frieda's weight is
farther from the mean than her height. For heights, the CV = 100 × σ/μ = 100 × (2.5)/(65) = 3.8%,
while for weights, CV = 100 × σ/μ =
100 × 10/125 = 8.0% (both CVs are below 10%).
10) Find the sample correlation coefficient for the following data.
X
Y
3
8
7
12
5
13
9
10
11
17
13
23
19
39
21
38
A) .8911
B) .9132
C) .9822
D) .9556

11) A smooth distribution with one mode is negatively skewed (skewed to the left). The median of the
distribution is $65. Which of
the following is a reasonable value for the distribution mean?
A) $76
B) $54
C) $81
D) $65

12) The following frequency distribution shows the amount earned yesterday by employees of a large
Las Vegas casino. Estimate the
mean daily earnings.
Earnings (dollars)
Frequency
50
<
75
10
75
<
100
15
100
<
125
60
125
<
150
40
150
<
175
10
A) $112.50
B) $125.01
C) $105.47
D) $117.13

13) 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) .79
B) .82
C) .65
D) .50

16) 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

Answer: C

Explanation: This is a joint probability that also entails the notation for an event's complement.
17) If P(A ∩ B) = .50, can P(A) = .20?

A) Only if P(A | B) = .10

B) Not unless P(B) = .30

C) Only if P(B ∩ A) = .60

D) If P(A) = .20, then P(A ∩ B) cannot equal .50.

Answer: D

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

18) 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) Hypergeometric

D) Geometric

Answer: C

Explanation: Sampling (n = 8 calls selected) without replacement with known number of "successes"
(s = 4 incorrect quotes) in the

population (N = 40 quotes).

19) 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

Answer: D

Explanation: 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.

20) 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

Answer: D

Explanation: Use Appendix B with λ = 108/60 = 1.8.

21) 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

Answer: D

Explanation: 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.

22) A large number of applicants for admission to graduate study in business are given an aptitude
test. Scores are normally

distributed with a mean of 460 and standard deviation of 80. The top 2.5 percent of the applicants
would have a score of at least

(choose the nearest integer)

A) 606

B) 617

C) 600

D) 646

Answer: B

Explanation: Using z = 1.96, we get X = 460 + 1.96 × 80 = 616.8.

23) The MPG (miles per gallon) for a certain compact car is normally distributed with a mean of 31
and a standard deviation of 0.8.

What is the probability that the MPG for a randomly selected compact car would be less than 32?

A) .3944

B) .8944

C) .1056

D) .5596

Answer: B

Explanation: P(X < 32) = P(Z < 1.25) = .8944.

24) The probability that a rental car will be stolen is .001. If 25,000 cars are rented from Hertz, what is
the normal approximation to
the probability that fewer than 20 will be stolen?

A) .2577

B) .1335

C) .1128

D) .8335

Answer: B

Explanation: Set n = 25,000 and π = .001. Calculate μ = nπ = (25000)(.001) = 25 and σ = [nπ(1 −

π)]1/2 = [25000(.001)(1 − .001)]1/2

= 4.9975. Use x = 19.5 (with the continuity correction) and calculate the binomial P(X < 20) ≈ P(z < −
1.10055) using z = (x − μ)/σ =

−1.10055.

25) If the mean waiting time for the next arrival is 18 minutes, what is the first quartile (25th percentile)
for waiting times?

A) 13 minutes

B) 7.9 minutes

C) 5.2 minutes

D) 3.1 minutes

Answer: C

Explanation: Set λ = 1/18 minute per arrival and take logs of both sides of exp(−λx) = .75 to solve for
x.

1) "Bob didn't wear his lucky T-shirt to class, so he failed his chemistry exam." This best illustrates
which fallacy?

A) Small sample generalization B) Poor survey methods

C) Post hoc reasoning D) More than one of the above

Answer: C

Explanation: There is no credible causal link between these two events.

2) Which is least likely to be regarded as a ratio variable?

A) A critic's rating of a restaurant on a 1 to 4 scale

B) Automobile exhaust emission of nitrogen dioxide (milligrams per mile)

C) Number of customer complaints per day at a cable TV company office

D) Cost of an eBay purchase

Answer: A

Explanation: Ratings on a Likert scale have no meaningful zero.

3) Thirty work orders are selected from a filing cabinet containing 500 work order folders by choosing
every 15th folder. Which

sampling method is this?

A) Simple random sample B) Systematic sample

C) Stratified sample D) Cluster sample

Answer: B

Explanation: This is a classic systematic sample from an accessible but unlisted population.

4) A population has groups that have a small amount of variation within them, but large variation
among or between the groups

themselves. The proper sampling technique is

A) simple random. B) stratified.

C) cluster. D) judgment.

Answer: B

Explanation: Identifiable strata call for stratified sampling if you can afford the extra time and cost.

5) Which is not revealed on a scatter plot?

A) Pairs of observed (xi, yi) data values

B) Nonlinear relationships between X and Y

C) Missing data values due to nonresponses

D) Unusual data values (outliers)

Answer: C

Explanation: Excel simply omits missing data for a scatter plot.

7) The following table is the frequency distribution of parking fees for a day:

Fee (dollars) Number of Garages

6.00 < 6.50 5

6.50 < 7.00 8

7.00 < 7.50 10

7.50 < 8.00 7

What is the mean parking fee?

A) $7.07 B) $6.95 C) $7.00 D) $7.25

Answer: A

Explanation: Apply the formulas for weighted average using each interval midpoint multiplied by its
relative frequency.

8) A population is of size 5,500 observations. When the data are represented in a relative frequency
distribution, the relative frequency

of a given interval is 0.15. The frequency in this interval is equal to

A) 4,675 B) 800 C) 675 D) 825

Answer: D

Explanation: 15 percent of 5,500 is 825.

9) Below is a sorted stem-and-leaf diagram for the measured speeds (miles per hour) of 49 randomly
chosen vehicles on highway I-80

in Nebraska. What is the mode?

Stem unit = 10

Leaf unit = 1

Frequency Stem Leaf

149

155

17 6 0 1 2 2 2 4 5 5 5 5 6 6 8 8 9 9 9

19 7 0 1 1 1 2 3 3 3 4 5 6 6 6 7 7 8 9 9 9

780133557

490122

49

A) 62 B) 79 C) 65 D) Impossible to tell

Answer: C

Explanation: The value 65 occurs 4 times. Some other data values occur 3 times.

14) The midhinge lies halfway between

A) xmin and xmax. B) Q1 and Q3.

C) the mean and the median. D) the inner fences.

Answer: B

Explanation: The midhinge is the average of Q1 and Q3.

15) Chebyshev's Theorem

A) applies to all samples.

B) applies only to samples from a normal population.

C) gives a narrower range of predictions than the Empirical Rule.

D) is based on Sturges' Rule for data classification.

Answer: A

Explanation: The strength of Chebyshev's Theorem is that it makes no assumption about

16) Exam scores in a random sample of students were 0, 50, 50, 70, 70, 80, 90, 90, 90, 100. Which
statement is incorrect?

A) The standard deviation is 29.61.

B) The data are slightly left-skewed.

C) The midrange and mean are almost the same.

D) The third quartile is 90.

Answer: C
Explanation: The midrange is (0 + 100)/2 = 50, while the mean is 69. Q3 falls between 90 and 90.

17) As a measure of variability, compared to the range, an advantage of the standard deviation is that
it

A) is calculated easily through the use of a formula.

B) considers only the data values in the middle of the data array.

C) describes the distance between the highest and lowest values.

D) considers all data values.

Answer: D

Explanation: The range is easy to calculate but utilizes only two data values, which may be unusual

19) The 25th percentile for waiting time in a doctor's office is 19 minutes. The 75th percentile is 31
minutes. Which is incorrect

regarding the fences?

A) The upper inner fence is 49 minutes.

B) The upper outer fence is 67 minutes.

C) A waiting time of 45 minutes exceeds the upper inner fence.

D) A waiting time of 70 minutes would be an outlier.

Answer: C

Explanation: Apply definitions of fences. For example, the upper inner fence is 31 + 1.5(31 − 19) =
49.

20) Frieda is 67 inches tall and weighs 135 pounds. Women her age have a mean height of 65 inches
with a standard deviation of 2.5

inches and a mean weight of 125 pounds with a standard deviation of 10 pounds. In relative terms, it
is correct to say that

A) Frieda is taller and thinner than women in her age group.

B) for this group of women, weight has greater variation than height.

C) Frieda's height is more unusual than her weight.

D) the variation coefficient exceeds 10 percent for both height and weight.

Answer: C

Explanation: Calculate the z-scores for Frieda's weight and Frieda's height. For Frieda's height,

z = (x − μ)/σ = (67 − 65)/(2.5) = 0.80, while for Frieda's weight, z = (x − μ)/σ = (135 − 125)/10 = 1.00.
Therefore, Frieda's weight is

farther from the mean than her height. For heights, the CV = 100 × σ/μ = 100 × (2.5)/(65) = 3.8%,
while for weights, CV = 100 × σ/μ =

22) 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) .67 B) .79 C) .22 D) .43
Answer: A
Explanation: Use the General Law of Addition P(A or B) = P(A) + P(B) − P(A ∩ B)

25) 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
Answer: C
Explanation: 1 − P(F1∩F2∩F3) = 1 − (.02)(.02)(.02) = 1 − .000008 = .999992, so 3 servers will do.
26) The following probabilities are given about events A and B in a sample space: P(A) = .30, P(B) =
.40, P(A or B) = .60. We can say
that
A) P(A ∩ B) = .70. B) P(A) = P(A ∩ B).
C) P(A ∩ B) = .10. D) A and B are independent events.
Answer: C
Explanation: Apply the General Rule of Addition: P(A or B) = P(A) + P(B) − P(A ∩ B).
27) 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) .7000 B) .5000 C) .4615 D) .1300
Answer: C
Explanation: Review Bayes' Theorem, and perhaps make a table or tree.

29) 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) .7407 B) .8000 C) .5400 D) .5000

Answer: A

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

30) 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) .010 B) .005 C) .001 D) Cannot be determined

Answer: B

Explanation: Because they are independent events then P(A ∩ B) = P(A)P(B) = (.05)(.10).

31) 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

Answer: C

Explanation: Use Appendix A with n = 8 and π = .90 to find P(X ≥ 5) or else =1- P(X≤4) = .99498.

32) 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

Answer: D

Explanation: Use Appendix B with λ = 3.0.

33) 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

Answer: D

Explanation: Use Appendix B with λ = 16/10 = 1.6.

34) The probability that a rental car will be stolen is .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

Answer: D

Explanation: Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (3500)(.0004) = 1.4 and use Appendix B
to find P(X ≤ 2)

35) 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) Hypergeometric C) Binomial D) Uniform

Answer: B

Explanation: Sampling (n = 4 printers) without replacement with known number of "successes" (s = 3

damaged printers) in the

population (N = 28 printers).

36) 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) Hypergeometric D) Geometric

Answer: C

Explanation: Sampling (n = 8 calls selected) without replacement with known number of "successes"
(s = 4 incorrect quotes) in the

population (N = 40 quotes).

37) 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

Answer: B

Explanation: Expected winning is (1/4000) × $1000 = $0.25.

38) 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

41) The binomial distribution is symmetrical when

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.

Answer: C

Explanation: The binomial distribution is skewed unless π = .50.

42) 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

Answer: A

Explanation: Use Appendix A with n = 9 and π = .20 to find P(X ≥ 1) or else use 1-P(X=0) = .865778.

43) 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.

Answer: A

Explanation: Use Appendix A with n = 3 and π = .90.

44) 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

Answer: B

Explanation: 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.

45) 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

Answer: C

Explanation: 3 out of 13 outcomes (don't forget to count 0 as an outcome).

46) 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

Answer: A

Explanation: 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.

47) 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 before you get the first interview?

A) 5 B) 7 C) 10 D) 12

Answer: A

Explanation: The geometric mean is 1/π = 1/(.20) = 5.

48) 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.

Answer: A

Explanation: 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.

49) 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

Answer: D

Explanation: 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.

50) 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) −10 D) −6

Answer: B

Explanation: 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.

51) In Melanie's Styling Salon, the time to complete a simple haircut is normally distributed with a
mean of 25 minutes and a standard

deviation of 4 minutes. The slowest quartile of customers will require more than how many minutes for
a simple haircut?

A) 3(n + 1)/4 minutes

B) 26 minutes

C) 25.7 minutes

D) 27.7 minutes

Answer: D

Explanation: Using Excel =NORM.INV(.75,25,4) = 27.698, or Q3 = 25 + 0.675(4) = 27.7 using

52) A student's grade on an examination was transformed to a z value of 0.67. Assuming a normal
distribution, we know that she

scored approximately in the top

A) 15 percent.

B) 50 percent.

C) 40 percent.

D) 25 percent.

Answer: D

Explanation: P(Z > 0.67) = 1 − P(Z < 0.67) = 1 − .2514 = .7486.

53) A large number of applicants for admission to graduate study in business are given an aptitude
test. Scores are normally distributed
with a mean of 460 and standard deviation of 80. The top 2.5 percent of the applicants would have a
score of at least (choose the

nearest integer)

A) 606

B) 617

C) 600

D) 646

Answer: B

Explanation: Using z = 1.96, we get X = 460 + 1.96 × 80 = 616.8.

54) If the mean time between in-flight aircraft engine shutdowns is 12,500 operating hours, the 90th
percentile of waiting times to the

next shutdown will be

A) 20,180 hours.

B) 28,782 hours.

C) 23,733 hours.

D) 18,724 hours.

Answer: B

Explanation: Set λ = 1/12500. To solve for x, set the left-tail area of 1 − exp(−λx) equal to .90. Then
solve for x by taking logs of both

sides.

55) A software developer makes 175 phone calls to its current customers. There is an 8 percent
chance of reaching a given customer

(instead of a busy signal, no answer, or answering machine). The normal approximation of the
probability of reaching at least 20

customers is

A) .022

B) .007

C) .063

D) .937

Answer: C

Explanation: Set n = 175 and π = .08. Calculate μ = nπ = (175)(.08) = 14 and σ = [nπ(1 − π)]1/2 =
[175(.08)(1 − .08)]1/2 = 3.588872.

Use x = 19.5 (with the continuity correction) and calculate the binomial P(X ≥ 20) ≈ P(z ≥ 1.532515)
using z = (x − μ)/σ