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Statistics
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Basic Business Statistics
Quiz 5: Discrete Probability Distributions
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Question 21
Multiple Choice
A lab orders 100 rats a week for each of the 52 weeks in the year for experiments that the lab conducts. Prices for 100 rats follow the following distribution:
Price:
$
10.00
$
12.50
$
15.00
Probability:
0.35
0.40
0.25
\begin{array}{lrrr}\text { Price: }& \$ 10.00 & \$ 12.50 & \$ 15.00 \\\hline \text { Probability: }&0.35 & 0.40 & 0.25\end{array}
Price:
Probability:
$10.00
0.35
$12.50
0.40
$15.00
0.25
How much should the lab budget for next year's rat orders be, assuming this distribution does not change?
Question 22
True/False
Suppose that a judge's decisions follow a binomial distribution and that his verdict is incorrect 10% of the time. In his next 10 decisions, the probability that he makes fewer than 2 incorrect verdicts is 0.736.