Question 1

The length of time it takes to fill an order at a local sandwich shop is normally distributed with a mean of 4.1 minutes and a standard deviation of 1.3 minutes.If the sandwich shop employees make $6.00 an hour,what is the mean and standard deviation for the labor costs per sandwich?

Accepted Answer

The answer of The length of time it takes to...

Question 2

You are the owner of a small casino in Las Vegas.You want to reward the high-rollers who come to your casino.You want to give free accommodations to no more than 10% of your patrons.Suppose that the mean amount wagered by all patrons is $287,with a standard deviation of $15.You should give free accommodations to those individuals who wager over how much money?

Accepted Answer

The answer of You are the owner of a small...

Question 3

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The amount of time you have to wait at a dentist's office before you are called in is uniformly distributed between zero and twenty minutes.
-What is the probability that you have to wait between 10 and 15 minutes?

Accepted Answer

The answer of THE NEXT QUESTIONS ARE BASED ON THE...

Question 4

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The amount of time you have to wait at a dentist's office before you are called in is uniformly distributed between zero and twenty minutes.
-What is the probability that you have to wait more than 8 minutes?

Accepted Answer

The answer of THE NEXT QUESTIONS ARE BASED ON THE...

Question 5

You are in charge of arranging the catering for a company meeting.Your company is responsible for paying for all meals ordered,so you don't want to order too many.Suppose that the expected number of people for the meeting is 84,with a standard deviation of 4 people.What is the fewest number of meals should you order so that the probability of having more people than meals is 5%?

Accepted Answer

The answer of You are in charge of arranging the...

Question 6

The normal distribution is useful for waiting-line or queuing problems and service-time problems.

Accepted Answer

The normal distribution is not typically used for waiting-line or queuing problems; instead, the exponential or Poisson distributions are more appropriate for modeling service times and arrival rates in such contexts.

Question 7

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The average amount of time between a score by either team in college soccer games is 15.2 minutes.Suppose that the time between scores follows an exponential distribution.
-What is the probability that a soccer game goes for 45 minutes without either team scoring?

Accepted Answer

The answer of THE NEXT QUESTIONS ARE BASED ON THE...

Question 8

Seventy percent of the time,you will be called in before you have to wait how long?

Accepted Answer

The answer of Seventy percent of the time,you will be...

Question 9

As manager of a pizza shop,you are responsible for placing the food orders.You currently have enough anchovies for 8 pizzas.You expect to have orders for 60 pizzas tonight.If 8% of all pizzas are ordered with anchovies,what is the probability that you run out of anchovies before the evening is over? Use the normal approximation for the binomial.

Accepted Answer

The answer of As manager of a pizza shop,you are...

Question 10

Normal probability plots provide a way to test the assumption that the normal distribution is a close approximation to the actual unknown distribution that supplied the data we are analyzing.

Accepted Answer

Normal probability plots are a graphical tool used to assess whether a given set of data can be assumed to be normally distributed. The plot compares the observed data to the expected distribution under normality, and if the points fall approximately along the straight line, it can be concluded that the data is normally distributed. Therefore, normal probability plots are useful for testing the normality assumption in statistical analysis.

Question 11

It has been found that 62.1% of all unsolicited third class mail delivered to households goes unread.If,over the course of a month,a household receives 150 pieces of unsolicited mail,what is the probability that the household discards more than 80 pieces of the mail without reading it? Use the normal approximation for the binomial distribution.

Accepted Answer

The answer of It has been found that 62.1% of...

Question 12

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Let the random variable Z follow a standard normal distribution.
-What is P(Z > -0.52)?

Accepted Answer

The answer of THE NEXT QUESTIONS ARE BASED ON THE...

Question 13

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Let the random variable Z follow a standard normal distribution.
-What is P(-0.44 < Z < 1.2)?

Accepted Answer

The answer of THE NEXT QUESTIONS ARE BASED ON THE...

Question 14

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Let the random variable Z follow a standard normal distribution.
-What is P(Z < 1.23)?

Accepted Answer

The answer of THE NEXT QUESTIONS ARE BASED ON THE...

Question 15

We can reduce the number of different statistical procedures needed to solve business problems by applying procedures based on the normal distribution to problems involving binomial and proportion random variables.

Accepted Answer

This statement is true. The central limit theorem states that under certain conditions, the distribution of a sample mean or proportion will be approximately normal, even if the original data is not normally distributed. Therefore, we can use procedures based on the normal distribution to solve problems involving binomial and proportion random variables, which can help reduce the number of different statistical procedures needed.

Question 16

In using finance models we must be aware that caution and continuous clear observation and thinking cannot be replaced by models developed from past events.

Accepted Answer

While finance models can be useful tools in decision making, they are only based on past events and cannot account for future changes or unforeseen circumstances. Therefore, it is important to approach their use with caution and to continuously apply critical thinking and observation to ensure their accuracy and relevance.

Question 17

Suppose that 24% of all sales in a grocery store are for amounts greater than $100.In a random sample of 50 invoices,what is the probability that more than ten of the invoices are for over $100? Use the normal approximation for the binomial distribution.

Accepted Answer

The answer of Suppose that 24% of all sales in...

Question 18

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Let the random variable Z follow a standard normal distribution.
-What is P(Z > 0.29)?

Accepted Answer

The answer of THE NEXT QUESTIONS ARE BASED ON THE...

Question 19

Investment A has an expected return of 10% with a standard deviation of 3.5%.Investment B has an expected return of 6% with a standard deviation of 1.2%.If you invest equally in both investments,what is the expected return and standard deviation of your portfolio? What assumptions have you made?

Accepted Answer

The answer of Investment A has an expected return of...

Question 20

The normal distribution is used to approximate the binomial under certain conditions.What is the best way to approximate the binomial using the normal?

Accepted Answer

The answer of The normal distribution is used to approximate...

Quiz 5: Continuous Random Variables and Probability Distributions

The length of time it takes to fill an order at a local sandwich shop is normally distributed with a mean of 4.1 minutes and a standard deviation of 1.3 minutes.If the sandwich shop employees make $6.00 an hour,what is the mean and standard deviation for the labor costs per sandwich?

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: The amount of time you have to wait at a dentist's office before you are called in is uniformly distributed between zero and twenty minutes. -What is the probability that you have to wait between 10 and 15 minutes?

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: The amount of time you have to wait at a dentist's office before you are called in is uniformly distributed between zero and twenty minutes. -What is the probability that you have to wait more than 8 minutes?

The normal distribution is useful for waiting-line or queuing problems and service-time problems.

Seventy percent of the time,you will be called in before you have to wait how long?

Normal probability plots provide a way to test the assumption that the normal distribution is a close approximation to the actual unknown distribution that supplied the data we are analyzing.

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: Let the random variable Z follow a standard normal distribution. -What is P(Z > -0.52)?

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: Let the random variable Z follow a standard normal distribution. -What is P(-0.44 < Z < 1.2)?

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: Let the random variable Z follow a standard normal distribution. -What is P(Z < 1.23)?

We can reduce the number of different statistical procedures needed to solve business problems by applying procedures based on the normal distribution to problems involving binomial and proportion random variables.

In using finance models we must be aware that caution and continuous clear observation and thinking cannot be replaced by models developed from past events.

Suppose that 24% of all sales in a grocery store are for amounts greater than $100.In a random sample of 50 invoices,what is the probability that more than ten of the invoices are for over $100? Use the normal approximation for the binomial distribution.

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: Let the random variable Z follow a standard normal distribution. -What is P(Z > 0.29)?

Investment A has an expected return of 10% with a standard deviation of 3.5%.Investment B has an expected return of 6% with a standard deviation of 1.2%.If you invest equally in both investments,what is the expected return and standard deviation of your portfolio? What assumptions have you made?

The normal distribution is used to approximate the binomial under certain conditions.What is the best way to approximate the binomial using the normal?