Deck 4: Basic Probability

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Question
The probability that house sales will increase in the next 6 months is estimated to be 0.25. The probability that the interest rates on housing loans will go up in the same period is estimated to be 1.. The probability that house sales or interest rates will go up during the next 6 months is estimated to be 0.89. The events of increase in house sales and increase in interest rates in the next 6 months are
A) collectively exhaustive.

A) mutually exclusive.
B) statistically independent.
D) none of the above
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Question
If either event A or event B must occur, then events A and B are said to be

A) mutually exclusive.
B) collectively exhaustive.
C) statistically independent.
D) none of the above
Question
All the events in the sample space that are not part of the specified event are called

A) simple events.
B) the complement of the event.
C) joint events.
D) the sample space.
Question
A company has 2 machines that produce widgets. An older machine produces 23% defective widgets, while the new machine produces only 8% defective widgets. In addition, the new machine produces 3 times as many widgets as the older machine does. Given a randomly chosen widget was tested and found to be defective, what is the probability it was produced by the new machine?

A) 0.511
B) 0.489
C) 0.15
D) 0.08
Question
If two events are mutually exclusive and collectively exhaustive, what is the probability that one or the other occurs?

A) 0
B) 1.00
C) 0.50
D) cannot be determined from the information given
Question
According to a survey of American households, the probability that the residents own 2 cars if annual household income is over $25,000 is 80%. Of the households surveyed, 60% had incomes over $25,000 and 70% had 2 cars. What is the probability that the residents of a household do not own 2 cars and have an income over $25,000 a year?

A) 0.18
B) 0.48
C) 0.22
D) 0.12
Question
The probability that a new advertising campaign will increase sales is assessed as being 0.80. The probability that the cost of developing the new ad campaign can be kept within the original budget allocation is 0.40. Assuming that the two events are independent, what is the probability that the cost is kept within budget or the campaign will increase sales?

A) 0.32
B) 0.88
C) 0.20
D) 0.68
Question
If two events are collectively exhaustive, what is the probability that one or the other occurs?

A)1.00
B) 0.50
C) 0
D) cannot be determined from the information given
Question
The closing price of a company's stock tomorrow can be lower, higher or the same as today's closing price. Based on the closing price of the stock collected over the last month, 25% of the days the closing price was higher than previous day's closing price, 45% was lower than previous day's and 30% was the same as previous day's. Based on this information, the probability that tomorrow's closing price will be higher than today's is 25%. This is an example of using which of the following probability approach?

A) empirical classical probability
B) subjective probability
C) a priori classical probability
D) conditional probability
Question
The probability that a new advertising campaign will increase sales is assessed as being 0.80. The probability that the cost of developing the new ad campaign can be kept within the original budget allocation is 0.40. Assuming that the two events are independent, what is the probability that neither the cost is kept within budget nor the campaign will increase sales?

A) 0.88
B) 0.12
C) 0.68
D) 0.32
Question
The probability that a new advertising campaign will increase sales is assessed as being 0.80. The probability that the cost of developing the new ad campaign can be kept within the original budget allocation is 0.40. Assuming that the two events are independent, what is the probability that the cost is kept within budget and the campaign will increase sales?

A) 0.40
B) 0.88
C) 0.32
D) 0.20
Question
 TABLE 4-2 \text { TABLE 4-2 } An alcohol awareness task force at a Big-Ten university sampled 200 students after the midterm to ask them whether they went bar hopping the weekend before the midterm or spent the weekend studying, and whether they did well or poorly on the midterm. The following result was obtained.
 Did Well on MidtermDid Poorlyon Midterm  Studyingfor Exam 8020 Went Bar Hopping 3070\begin{array}{l}\begin{array} { lcc} &\text { Did Well on Midterm}& \text {Did Poorlyon Midterm }\\\hline \text { Studyingfor Exam } & 80 & 20 \\\text { Went Bar Hopping } & 30 & 70\end{array}\end{array}


-Referring to Table 4-2, the events "Did Well on Midterm" and "Studying for Exam" are

A) collective exhaustive.
B) statistically dependent.
C) mutually exclusive.
D) none of the above
Question
If the outcome of event A is not affected by event B, then events A and B are said to be

A) collectively exhaustive.
B) mutually exclusive.
C) statistically independent.
D) none of the above
Question
 TABLE 4-1 \text { TABLE 4-1 } Mothers Against Drunk Driving is a very visible group whose main focus is to educate the public about the harm caused by drunk drivers. A study was recently done that emphasized the problem we all face with drinking and driving. Four hundred accidents that occurred on a Saturday night were analyzed. Two items noted were the number of vehicles involved and whether alcohol played a role in the accident. The numbers are shown below:
\quad \quad \quad \quad \quad  Number of Vehicles Involved \text { Number of Vehicles Involved }
 Did alcohol playa role? 123 Totals  Yes 5010020170 No 2517530230 Totals 7527550400\begin{array}{lccccc}\text { Did alcohol playa role? } & 1 && 2 & 3 & \text { Totals } \\\hline \text { Yes } & 50 & & 100 & 20 & 170 \\\hline \text { No } & 25 & & 175 & 30 & 230 \\ \text { Totals } & 75 && 275 & 50 & 400 &\\\hline \end{array}


-Referring to Table 4-1, given alcohol was involved, what proportion of accidents involved a single vehicle?

A) 120/400 or 30%
B) 50/170 or 29.41%
C) 120/170 or 70.59%
D) 50/75 or 66.67%
Question
The collection of all possible events is called

A) the null set.
B) a simple probability.
C) a joint probability.
D) a sample space.
Question
A business venture can result in the following outcomes (with their corresponding chance of occurring in parentheses): Highly Successful (10%), Successful (25%), Break Even (25%), Disappointing (20%), and Highly Disappointing (?). If these are the only outcomes possible for the business venture, what is the chance that the business venture will be considered Highly Disappointing?

A) 20%
B) 15%
C) 25%
D) 10%
Question
The closing price of a company's stock tomorrow can be lower, higher or the same as today's closing price. After evaluating all the information available on the company's fundamentals and the economic environment, an analyst has determined that the probability that tomorrow's closing price will be higher than today's is determined to be 25%. This is an example of using which of the following probability approach?

A) a priori classical probability
B) subjective probability
C) conditional probability
D) empirical classical probability
Question
TABLE 4-1
Mothers Against Drunk Driving is a very visible group whose main focus is to educate the public about the harm caused by drunk drivers. A study was recently done that emphasized the problem we all face with drinking and driving. Four hundred accidents that occurred on a Saturday night were analyzed. Two items noted were the number of vehicles involved and whether alcohol played a role in the accident. The numbers are shown below:
\quad \quad \quad \quad \quad  Number of Vehicles Involved \text { Number of Vehicles Involved }
 Did alcohol playa role? 123 Totals  Yes 5010020170 No 2517530230 Totals 7527550400\begin{array}{lccccc}\text { Did alcohol playa role? } & 1 & &2 & 3 & \text { Totals } \\\hline \text { Yes } & 50 & & 100 & 20 & 170 \\\hline \text { No } & 25 & & 175 & 30 & 230 \\ \text { Totals } & 75 & &275 & 50 & 400 &\\\hline \end{array}


-Referring to Table 4-1, what proportion of accidents involved alcohol or a single vehicle?

A) 25/400 or 6.25%
B) 195/400 or 48.75%
C) 50/400 or 12.5%
D) 245/400 or 61.25%
Question
If event A and event B cannot occur at the same time, then events A and B are said to be

A) mutually exclusive.
B) collectively exhaustive.
C) statistically independent.
D) none of the above
Question
The employees of a company were surveyed on questions regarding their educational background and marital status. Of the 600 employees, 400 had college degrees, 100 were single, and 60 were single college graduates. What is the probability that an employee of the company does not have a college degree?

A) 0.33
B) 0.67
C) 0.75
D) 0.10
Question
TABLE 4-2
An alcohol awareness task force at a Big-Ten university sampled 200 students after the midterm to ask them whether they went bar hopping the weekend before the midterm or spent the weekend studying, and whether they did well or poorly on the midterm. The following result was obtained.
 Did Well on MidtermDid Poorlyon Midterm  Studyingror Exam 8020 Went Bar Hopping 3070\begin{array}{l}\begin{array} { lcc} &\text { Did Well on Midterm}& \text {Did Poorlyon Midterm }\\\hline \text { Studyingror Exam } & 80 & 20 \\\text { Went Bar Hopping } & 30 & 70\end{array}\end{array}


-Referring to Table 4-2, what is the probability that a randomly selected student did well on the midterm or went bar hopping the weekend before the midterm?

A) 30/200 or 15%
B) (30 + 70)/200 or 50%
C) (80 + 30 + 70)/200 or 90%
D) (80 + 30)/200 or 55%
Question
A recent survey of banks revealed the following distribution for the interest rate being charged on a home loan (based on a 30-year mortgage with a 10% down payment). If a bank is selected at random from this distribution, what is the chance that the interest rate charged on a home loan will exceed 8.0%?
 Interest Rate 7.0%7.5%8.0%8.5%>8.5% Probability 0.120.230.240.350.06\begin{array} { l | l l l l l } \text { Interest Rate } & 7.0 \% & 7.5 \% & 8.0 \% & 8.5 \%& > 8.5 \% \\\hline \text { Probability } & 0.12 & 0.23 & 0.24 & 0.35 & 0.06\end{array}

A) 0.06
B) 0.59
C) 0.41
D) 1.00
Question
If two equally likely events A and B are collectively exhaustive, what is the probability that event A occurs?

A) 0
B) 1.00
C) 0.50
D) cannot be determined from the information given
Question
The employees of a company were surveyed on questions regarding their educational background and marital status. Of the 600 employees, 400 had college degrees, 100 were single, and 60 were single college graduates. What is the probability that an employee of the company is married and has a college degree?

A) 500/600
B) 340/600
C) 400/600
D) 40/600
Question
If two events are independent, what is the probability that they both occur?
A) 0

A) 1.00
B) 0.50
B) cannot be determined from the information given
Question
The probability that house sales will increase in the next 6 months is estimated to be 0.25. The probability that the interest rates on housing loans will go up in the same period is estimated to be 1.. The probability that house sales or interest rates will go up during the next 6 months is estimated to be 0.89. The events of increase in house sales and no increase in house sales in the next 6 months are

A) statistically independent.
B) collectively exhaustive.
C) mutually exclusive.
D) both B and C
Question
If two events are mutually exclusive, what is the probability that both occur at the same time?

A) 1.00
B) 0
C) 0.50
D) cannot be determined from the information given
Question
TABLE 4-1
Mothers Against Drunk Driving is a very visible group whose main focus is to educate the public about the harm caused by drunk drivers. A study was recently done that emphasized the problem we all face with drinking and driving. Four hundred accidents that occurred on a Saturday night were analyzed. Two items noted were the number of vehicles involved and whether alcohol played a role in the accident. The numbers are shown below:
 Number of Vehicles Involved  Did alcohol play a role? 123 Totals  Yes 5010020170 No 2517530230 Totals 7527550400\begin{array}{l}\text { Number of Vehicles Involved }\\\begin{array} { l c c c c } \text { Did alcohol play a role? } & 1 & 2 & 3 & \text { Totals } \\\hline \text { Yes } & 50 & 100 & 20 & 170 \\\hline \text { No } & 25 & 175 & 30 & 230 \\\text { Totals } & 75 & 275 & 50 & 400 \\\hline\end{array}\end{array}

-Referring to Table 4-1, what proportion of accidents involved more than one vehicle?

A) 50/400 or 12.5%
B) 325/400 or 81.25%
C) 75/400 or 18.75%
D) 275/400 or 68.75%
Question
According to a survey of American households, the probability that the residents own 2 cars if annual household income is over $25,000 is 80%. Of the households surveyed, 60% had incomes over $25,000 and 70% had 2 cars. What is the probability that the residents do not own 2 cars if annual household income is not over $25,000?

A) 0.45
B) 0.70
C) 0.12
D) 0.18
Question
The probability that house sales will increase in the next 6 months is estimated to be 0.25. The probability that the interest rates on housing loans will go up in the same period is estimated to be 0.74. The probability that house sales or interest rates will go up during the next 6 months is estimated to be 0.89. What is the probability that house sales will increase but interest rates will not during the next 6 months?

A) 0.89
B) 0.15
C) 0.065
D) 0.51
Question
The probability that house sales will increase in the next 6 months is estimated to be 0.25. The probability that the interest rates on housing loans will go up in the same period is estimated to be 0.74. The probability that house sales or interest rates will go up during the next 6 months is estimated to be 0.89. What is the probability that neither house sales nor interest rates will increase during the next 6 months?

A) 0.90
B) 0.11
C) 0.195
D) 0.89
Question
TABLE 4-1
Mothers Against Drunk Driving is a very visible group whose main focus is to educate the public about the harm caused by drunk drivers. A study was recently done that emphasized the problem we all face with drinking and driving. Four hundred accidents that occurred on a Saturday night were analyzed. Two items noted were the number of vehicles involved and whether alcohol played a role in the accident. The numbers are shown below:
 Number of Vehicles Involved  Did alcohol playa role? 123 Totals  Yes 5010020170 No 2517530230 Totals 7527550400\begin{array}{l}\text { Number of Vehicles Involved }\\\begin{array} { l c l l l c } \hline \text { Did alcohol playa role? } & 1 & 2 & 3 & \text { Totals } \\\hline \text { Yes } & 50 & 100 & 20 & 170 \\\hline \text { No } & 25 & 175 & 30 & 230 \\\text { Totals } & 75 & 275 & 50 & 400 \\\hline\end{array}\end{array}

-Referring to Table 4-1, given that alcohol was not involved, what proportion of the accidents were single vehicle?

A) 25/75 or 33.33%
B) 50/170 or 29.41%
C) 50/75 or 66.67%
D) 25/230 or 10.87%
Question
According to a survey of American households, the probability that the residents own 2 cars if annual household income is over $25,000 is 80%. Of the households surveyed, 60% had incomes over $25,000 and 70% had 2 cars. What is the probability that annual household income is over $25,000 if the residents of a household own 2 cars?

A) 0.48
B) 0.50
C) 0.69
D) 0.42
Question
If two events are collectively exhaustive, what is the probability that both occur at the same time?

A) 1.00
B) 0
C) 0.50
D) cannot be determined from the information given
Question
TABLE 4-1
Mothers Against Drunk Driving is a very visible group whose main focus is to educate the public about the harm caused by drunk drivers. A study was recently done that emphasized the problem we all face with drinking and driving. Four hundred accidents that occurred on a Saturday night were analyzed. Two items noted were the number of vehicles involved and whether alcohol played a role in the accident. The numbers are shown below:
 Number of Vehicles Involved  Did alcohol play a role? 123 Totals  Yes 5010020170 No 2517530230 Totals 7527550400\begin{array}{l}\text { Number of Vehicles Involved }\\\begin{array} { l c c c c } \text { Did alcohol play a role? } & 1 & 2 & 3 & \text { Totals } \\\hline \text { Yes } & 50 & 100 & 20 & 170 \\\hline \text { No } & 25 & 175 & 30 & 230 \\\text { Totals } & 75 & 275 & 50 & 400 \\\hline\end{array}\end{array}

-Referring to Table 4-1, given that alcohol was not involved, what proportion of the accidents were multiple vehicle?

A) 120/170 or 70.59%
B) 50/170 or 29.41%
C) 205/230 or 89.13%
D) 25/230 or 10.87%
Question
If events A and B are mutually exclusive and collectively exhaustive, what is the probability that event A occurs?

A) 1.00
B) 0
C) 0.50
D) cannot be determined from the information given
Question
TABLE 4-1
Mothers Against Drunk Driving is a very visible group whose main focus is to educate the public about the harm caused by drunk drivers. A study was recently done that emphasized the problem we all face with drinking and driving. Four hundred accidents that occurred on a Saturday night were analyzed. Two items noted were the number of vehicles involved and whether alcohol played a role in the accident. The numbers are shown below:
 Number of Vehicles Involved  Did alcohol playa role? 123 Totals  Yes 5010020170 No 2517530230 Totals 7527550400\begin{array}{l}\text { Number of Vehicles Involved }\\\begin{array} { l c c c c c } { \text { Did alcohol playa role? } } & 1 & 2 & 3 & \text { Totals } \\\hline \text { Yes } & 50 & 100 & 20 & 170 \\\hline \text { No } & 25 & 175 & 30 & 230 \\\text { Totals } & 75 & 275 & 50 & 400 \\\hline\end{array}\end{array}

-Referring to Table 4-1, given that multiple vehicles were involved, what proportion of accidents involved alcohol?

A) 120/400 or 30%
B) 120/170 or 70.59%
C) 120/325 or 36.92%
D) 120/230 or 52.17%
Question
The employees of a company were surveyed on questions regarding their educational background and marital status. Of the 600 employees, 400 had college degrees, 100 were single, and 60 were single college graduates. What is the probability that an employee of the company is single or has a college degree?

A) 0.25
B) 0.733
C) 0.10
D) 0.667
Question
The probability that a new advertising campaign will increase sales is assessed as being 0.80. The probability that the cost of developing the new ad campaign can be kept within the original budget allocation is 0.40. Assuming that the two events are independent, what is the probability that the cost is not kept within budget or the campaign will not increase sales?

A) 0.68
B) 0.32
C) 0.12
D) 0.88
Question
A company has 2 machines that produce widgets. An older machine produces 23% defective widgets, while the new machine produces only 8% defective widgets. In addition, the new machine produces 3 times as many widgets as the older machine does. What is the probability that a randomly chosen widget produced by the company is defective?

A) 0.078
B) 0.156
C) 0.1175
D) 0.310
Question
Simple probability is also called

A) Bayes' theorem.
B) joint probability.
C) conditional probability.
D) marginal probability.
Question
If two equally likely events A and B are mutually exclusive, what is the probability that event A occurs?

A) 1.00
B) 0
C) 0.50
D) cannot be determined from the information given
Question
If two equally likely events A and B are mutually exclusive and collectively exhaustive, what is the probability that event A occurs?
A) 0

A) 1.00
B) 0.50
B) cannot be determined from the information given
Question
The probability that house sales will increase in the next 6 months is estimated to be 0.25. The probability that the interest rates on housing loans will go up in the same period is estimated to be 0.74. The probability that house sales or interest rates will go up during the next 6 months is estimated to be 0.89. What is the probability that both house sales and interest rates will increase during the next 6 months?

A) 0.90
B) 0.10
C) 0.705
D) 0.185
Question
 TABLE 4-2 \text { TABLE 4-2 } An alcoholawareness task force at a Big-Ten universitysampled 200 studentsafter the midterm toask them whether they went barhopping the weekend before the midterm orspent the weekend studying,and whetherthey did well or poorly on the midterm. The following result was obtained.

Did Well on Midterm  Did Poorly on MidtermStudying for Exam 8020Went Bar Hopping 3070\begin{array}{l|cc} & \text {Did Well on Midterm }&\text { Did Poorly on Midterm} \\\hline \text {Studying for Exam }& 80 & 20 \\\text {Went Bar Hopping }& 30 & 70\end{array}


-Referring to Table 4-2, what is the probability that a randomly selected student who went bar hopping will do well on the midterm?

A) 30/200 or 15%
B) 30/110 or 27.27%
C) (100/200) × (110/200) or 27.50%
D) 30/100 or 30%
Question
When using the general multiplication rule, P(A and

A) P(B)/P(A).
B) P(A|B)P(B).
B) is equal to
C) P(A)P(B).
D) P(A)/P(B).
Question
If two events are mutually exclusive and collectively exhaustive, what is the probability that both occur?

A) 1.00
B) 0
C) 0.50
D) cannot be determined from the information given
Question
A company has 2 machines that produce widgets. An older machine produces 23% defective widgets, while the new machine produces only 8% defective widgets. In addition, the new machine produces 3 times as many widgets as the older machine does. Given that a widget was produced by the new machine, what is the probability it is not defective?

A) 0.06
B) 0.50
C) 0.94
D) 0.92
Question
Selection of raffle tickets from a large bowl is an example of

A) subjective probability.
B) sampling without replacement.
C) sampling with replacement.
D) none of the above
Question
According to a survey of American households, the probability that the residents own 2 cars if annual household income is over $25,000 is 80%. Of the households surveyed, 60% had incomes over $25,000 and 70% had 2 cars. What is the probability that annual household income is over $25,000 if the residents of a household do not own 2 cars?

A) 0.12
B) 0.18
C) 0.70
D) 0.40
Question
TABLE 4-2
An alcohol awareness task force at a Big-Ten university sampled 200 students after the midterm to ask them whether they went bar hopping the weekend before the midterm or spent the weekend studying, and whether they did well or poorly on the midterm. The following result was obtained.

Did Well on MidtermDid Poorly on MidtermStudying for Exam 8020Went Bar Hopping3070\begin{array}{l|cc} & \text {Did Well on Midterm} & \text {Did Poorly on Midterm} \\\hline\text {Studying for Exam }& 80 & 20 \\\text {Went Bar Hopping} & 30 & 70\end{array}


-Referring to Table 4-2, the events "Did Well on Midterm" and "Studying for Exam" are

A) not statistically dependent.
B) collective exhaustive.
C) not mutually exclusive.
D) none of the above
Question
According to a survey of American households, the probability that the residents own 2 cars if annual household income is over $25,000 is 80%. Of the households surveyed, 60% had incomes over $25,000 and 70% had 2 cars. What is the probability that the residents of a household own 2 cars and have an income less than or equal to $25,000 a year?

A) 0.22
B) 0.48
C) 0.12
D) 0.18
Question
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. TABLE 4-3
A survey is taken among customers of a fast-food restaurant to determine preference for hamburger or chicken. Of 200 respondents selected, 75 were children and 125 were adults. 120 preferred hamburger and 80 preferred chicken. 55 of the children preferred hamburger.

-Referring to Table 4-3, the probability that a randomly selected individual is an adult is________
Question
TABLE 4-2
An alcohol awareness task force at a Big-Ten university sampled 200 students after the midterm to ask them whether they went bar hopping the weekend before the midterm or spent the weekend studying, and whether they did well or poorly on the midterm. The following result was obtained.

Did Well on MidtermDid Poorly on MidtermStudying for Exam 8020Went Bar Hopping3070\begin{array}{l|cc} & \text {Did Well on Midterm} & \text {Did Poorly on Midterm} \\\hline\text {Studying for Exam }& 80 & 20 \\\text {Went Bar Hopping} & 30 & 70\end{array}


-Referring to Table 4-2, the events "Did Well on Midterm" and "Did Poorly on Midterm" are

A) collective exhaustive.
B) statistically dependent.
C) mutually exclusive.
D) all of the above
Question
TABLE 4-2
An alcohol awareness task force at a Big-Ten university sampled 200 students after the midterm to ask them whether they went bar hopping the weekend before the midterm or spent the weekend studying, and whether they did well or poorly on the midterm. The following result was obtained.

Did Well on MidtermDid Poorly on MidtermStudying for Exam 8020Went Bar Hopping3070\begin{array}{l|cc} & \text {Did Well on Midterm} & \text {Did Poorly on Midterm} \\\hline\text {Studying for Exam }& 80 & 20 \\\text {Went Bar Hopping} & 30 & 70\end{array}


-Referring to Table 4-1, given that 3 vehicles were involved, what proportion of accidents involved alcohol?

A) 20/50 or 40%
B) 20/170 or 11.77%
C) 20/400 or 5%
D) 20/30 or 66.67%
Question
 TABLE 4-2 \text { TABLE 4-2 } An alcohol awareness task force at a Big-Ten university sampled 200 students after the midterm to ask them whether they went bar hopping the weekend before the midterm or spent the weekend studying, and whether they did well or poorly on the midterm. The following result was obtained.
 Did Well on MidtermDid Poorlyon Midterm  Studyingror Exam 8020 Went Bar Hopping 3070\begin{array}{l}\begin{array} { lcc} &\text { Did Well on Midterm}& \text {Did Poorlyon Midterm }\\\hline \text { Studyingror Exam } & 80 & 20 \\\text { Went Bar Hopping } & 30 & 70\end{array}\end{array}


-Referring to Table 4-2, what is the probability that a randomly selected student did well on the midterm and also went bar hopping the weekend before the midterm?

A) (80 + 30)/200 or 55%
B) 30/200 or 15%
C) (80 + 30 + 70)/200 or 90%
D) (30 + 70)/200 or 50%
Question
The closing price of a company's stock tomorrow can be lower, higher or the same as today's closed. Without any prior information that may affect the price of the stock tomorrow, the probability that it will close higher than today's close is 1/3. This is an example of using which of the following probability approach?

A) subjective probability
B) a priori classical probability
C) empirical classical probability
D) conditional probability
Question
If two events are mutually exclusive, what is the probability that one or the other occurs?

A) 0.50
B) 0
C) 1.00
D) cannot be determined from the information given
Question
According to a survey of American households, the probability that the residents own 2 cars if annual household income is over $25,000 is 80%. Of the households surveyed, 60% had incomes over $25,000 and 70% had 2 cars. What is the probability that the residents of a household own 2 cars and have an income over $25,000 a year?

A) 0.18
B) 0.22
C) 0.48
D) 0.12
Question
TABLE 4-1
Mothers Against Drunk Driving is a very visible group whose main focus is to educate the public about the harm caused by drunk drivers. A study was recently done that emphasized the problem we all face with drinking and driving. Four hundred accidents that occurred on a Saturday night were analyzed. Two items noted were the number of vehicles involved and whether alcohol played a role in the accident. The numbers are shown below:
 Number of Vehicles Involved  Did alcohol playa role? 123 Totals  Yes 5010020170 No 2517530230 Totals 7527550400\begin{array}{l}\text { Number of Vehicles Involved }\\\begin{array} { l c c c c } \text { Did alcohol playa role? } & 1 & 2 & 3 & \text { Totals } \\\hline \text { Yes } & 50 & 100 & 20 & 170 \\\hline \text { No } & 25 & 175 & 30 & 230 \\\text { Totals } & 75 & 275 & 50 & 400 \\\hline\end{array}\end{array}

-Referring to Table 4-1, what proportion of accidents involved alcohol and a single vehicle?

A) 50/400 or 12.5%
B) 25/400 or 6.25%
C) 195/400 or 48.75%
D) 245/400 or 61.25%
Question
TABLE 4-3
A survey is taken among customers of a fast-food restaurant to determine preference for hamburger or chicken. Of 200 respondents selected, 75 were children and 125 were adults. 120 preferred hamburger and 80 preferred chicken. 55 of the children preferred hamburger.

-Referring to Table 4-3, assume we know the person is a child. The probability that this individual prefers hamburger is ______.
Question
A debate team of 4 is to be chosen from a class of 35. There are two twin brothers in the class. How many possible ways can the team be formed which will include both of the twin brothers?
Question
TABLE 4-4
Suppose that patrons of a restaurant were asked whether they preferred beer or whether they preferred wine. 70% said that they preferred beer. 60% of the patrons were male. 80% of the males preferred beer.

-Referring to Table 4-4, suppose a randomly selected patron prefers beer. Then the probability the patron is a male is _______.
Question
TABLE 4-5
In a meat packaging plant Machine A accounts for 60% of the plant's output, while Machine B accounts for 40% of the plant's output. In total, 4% of the packages are improperly sealed. Also, 3% of the packages are from Machine A and are improperly sealed.

-Referring to Table 4-5, if a package selected at random is improperly sealed, the probability that it came from machine A is_______ .
Question
TABLE 4-8
According to the record of the registrar's office at a state university, 35% of the students are freshman, 25% are sophomore, 16% are junior and the rest are senior. Among the freshmen, sophomores, juniors and seniors, the portion of students who live in the dormitory are, respectively, 80%, 60%, 30% and 20%.
Referring to Table 4-8, if a randomly selected student does not live in the dormitory, what is the probability that the student is a junior or a senior?
Question
An exploration team of 2 women and 3 men is to be chosen from a candidate pool of 6 women and 7 men. How many different ways can this team of 5 be formed?
Question
TABLE 4-4
Suppose that patrons of a restaurant were asked whether they preferred beer or whether they preferred wine. 70% said that they preferred beer. 60% of the patrons were male. 80% of the males preferred beer.

-Referring to Table 4-4, the probability a randomly selected patron prefers wine is_____.
Question
Suppose A and B are events where P(A) = 0.4, P(B) = 0.5, and P(A andB) = 0.1. Then P(B|A)= _______.
Question
  A survey conducted by the Segal Company of New York found that in a sample of 189 large companies, 40 offered stock options to their board members as part of their non-cash compensation packages. For small- to mid-sized companies, 43 of the 180 surveyed indicated that they offer stock options as part of their noncash compensation packages to their board members. Referring to Table 4-9, if a randomly selected company is a large company, what is the probability that it offered stock options to their board members?<div style=padding-top: 35px> A survey conducted by the Segal Company of New York found that in a sample of 189 large companies, 40 offered stock options to their board members as part of their non-cash compensation packages. For small- to mid-sized companies, 43 of the 180 surveyed indicated that they offer stock options as part of their noncash compensation packages to their board members.
Referring to Table 4-9, if a randomly selected company is a large company, what is the probability that it offered stock options to their board members?
Question
TABLE 4-5
In a meat packaging plant Machine A accounts for 60% of the plant's output, while Machine B accounts for 40% of the plant's output. In total, 4% of the packages are improperly sealed. Also, 3% of the packages are from Machine A and are improperly sealed.

-Referring to Table 4-5, if a package selected at random came from Machine B, the probability that it is properly sealed is _______.
Question
TABLE 4-5
In a meat packaging plant Machine A accounts for 60% of the plant's output, while Machine B accounts for 40% of the plant's output. In total, 4% of the packages are improperly sealed. Also, 3% of the packages are from Machine A and are improperly sealed.

-Referring to Table 4-5, if a package selected at random came from Machine B, the probability that it is improperly sealed is ______.
Question
TABLE 4-9
A survey conducted by the Segal Company of New York found that in a sample of 189 large companies, 40 offered stock options to their board members as part of their non-cash compensation packages. For small- to mid-sized companies, 43 of the 180 surveyed indicated that they offer stock options as part of their noncash compensation packages to their board members.
Referring to Table 4-9, is the size of the company statistically independent of whether stock options are offered to their board members and why?
Question
TABLE 4-8
According to the record of the registrar's office at a state university, 35% of the students are freshman, 25% are sophomore, 16% are junior and the rest are senior. Among the freshmen, sophomores, juniors and seniors, the portion of students who live in the dormitory are, respectively, 80%, 60%, 30% and 20%.
Referring to Table 4-8, what percentage of the students live in a dormitory?
Question
  Are whites more likely to claim bias? It was found that 60% of the workers were white, 30% were black and 10% are other races. Given that a worker was white, the probability that the worker had claimed bias was 30%. Given that a worker was black, the probability that the worker had claimed bias was 40%. Given that a worker was other race, the probability that the worker had claimed bias was 0%. Referring to Table 4-10, if a randomly selected worker had not claimed bias, what is the probability that the worker is white?<div style=padding-top: 35px> Are whites more likely to claim bias? It was found that 60% of the workers were white, 30% were black and 10% are other races. Given that a worker was white, the probability that the worker had claimed bias was 30%. Given that a worker was black, the probability that the worker had claimed bias was 40%. Given that a worker was other race, the probability that the worker had claimed bias was 0%.
Referring to Table 4-10, if a randomly selected worker had not claimed bias, what is the probability that the worker is white?
Question
TABLE 4-6
At a Texas college, 60% of the students are from the southern part of the state, 30% are from the northern part of the state, and the remaining 10% are from out-of-state. All students must take and pass an Entry Level Math (ELM) test. 60% of the southerners have passed the ELM, 70% of the northerners have passed the ELM, and 90% of the out-of-staters have passed the ELM.

-Referring to Table 4-6, the probability that a randomly selected student is not from southern Texas and has not passed the ELM is _______.
Question
Suppose A and B are independent events where P(A) = 0.4 and P(B) = 0.5. Then P(A andB) =____
Question
At the International Pancakes Hut, there are 4 different ways to have an egg cooked, 7 different choices of pancakes, 5 different types of syrups and 8 different beverages. How many different ways are there to order an egg, a pancake with a choice of syrup and a beverage?
Question
TABLE 4-9
A survey conducted by the Segal Company of New York found that in a sample of 189 large companies, 40 offered stock options to their board members as part of their non-cash compensation packages. For small- to mid-sized companies, 43 of the 180 surveyed indicated that they offer stock options as part of their noncash compensation packages to their board members.
Referring to Table 4-9, if a randomly selected company offered stock options to their board member, what is the probability that it is a large company?
Question
Suppose A and B are events where P(A) = 0.4, P(B) = 0.5, and P(A andB) = 0.1. Then P(A|B)= ______.
Question
Eleven freshmen are to be assigned to eleven empty rooms in a student dormitory. Each room is considered unique so that it matters who is being assigned to which room. How many different ways can those eleven freshmen be allocated?
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Deck 4: Basic Probability
1
The probability that house sales will increase in the next 6 months is estimated to be 0.25. The probability that the interest rates on housing loans will go up in the same period is estimated to be 1.. The probability that house sales or interest rates will go up during the next 6 months is estimated to be 0.89. The events of increase in house sales and increase in interest rates in the next 6 months are
A) collectively exhaustive.

A) mutually exclusive.
B) statistically independent.
D) none of the above
D
2
If either event A or event B must occur, then events A and B are said to be

A) mutually exclusive.
B) collectively exhaustive.
C) statistically independent.
D) none of the above
B
3
All the events in the sample space that are not part of the specified event are called

A) simple events.
B) the complement of the event.
C) joint events.
D) the sample space.
B
4
A company has 2 machines that produce widgets. An older machine produces 23% defective widgets, while the new machine produces only 8% defective widgets. In addition, the new machine produces 3 times as many widgets as the older machine does. Given a randomly chosen widget was tested and found to be defective, what is the probability it was produced by the new machine?

A) 0.511
B) 0.489
C) 0.15
D) 0.08
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5
If two events are mutually exclusive and collectively exhaustive, what is the probability that one or the other occurs?

A) 0
B) 1.00
C) 0.50
D) cannot be determined from the information given
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6
According to a survey of American households, the probability that the residents own 2 cars if annual household income is over $25,000 is 80%. Of the households surveyed, 60% had incomes over $25,000 and 70% had 2 cars. What is the probability that the residents of a household do not own 2 cars and have an income over $25,000 a year?

A) 0.18
B) 0.48
C) 0.22
D) 0.12
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7
The probability that a new advertising campaign will increase sales is assessed as being 0.80. The probability that the cost of developing the new ad campaign can be kept within the original budget allocation is 0.40. Assuming that the two events are independent, what is the probability that the cost is kept within budget or the campaign will increase sales?

A) 0.32
B) 0.88
C) 0.20
D) 0.68
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8
If two events are collectively exhaustive, what is the probability that one or the other occurs?

A)1.00
B) 0.50
C) 0
D) cannot be determined from the information given
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9
The closing price of a company's stock tomorrow can be lower, higher or the same as today's closing price. Based on the closing price of the stock collected over the last month, 25% of the days the closing price was higher than previous day's closing price, 45% was lower than previous day's and 30% was the same as previous day's. Based on this information, the probability that tomorrow's closing price will be higher than today's is 25%. This is an example of using which of the following probability approach?

A) empirical classical probability
B) subjective probability
C) a priori classical probability
D) conditional probability
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10
The probability that a new advertising campaign will increase sales is assessed as being 0.80. The probability that the cost of developing the new ad campaign can be kept within the original budget allocation is 0.40. Assuming that the two events are independent, what is the probability that neither the cost is kept within budget nor the campaign will increase sales?

A) 0.88
B) 0.12
C) 0.68
D) 0.32
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11
The probability that a new advertising campaign will increase sales is assessed as being 0.80. The probability that the cost of developing the new ad campaign can be kept within the original budget allocation is 0.40. Assuming that the two events are independent, what is the probability that the cost is kept within budget and the campaign will increase sales?

A) 0.40
B) 0.88
C) 0.32
D) 0.20
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12
 TABLE 4-2 \text { TABLE 4-2 } An alcohol awareness task force at a Big-Ten university sampled 200 students after the midterm to ask them whether they went bar hopping the weekend before the midterm or spent the weekend studying, and whether they did well or poorly on the midterm. The following result was obtained.
 Did Well on MidtermDid Poorlyon Midterm  Studyingfor Exam 8020 Went Bar Hopping 3070\begin{array}{l}\begin{array} { lcc} &\text { Did Well on Midterm}& \text {Did Poorlyon Midterm }\\\hline \text { Studyingfor Exam } & 80 & 20 \\\text { Went Bar Hopping } & 30 & 70\end{array}\end{array}


-Referring to Table 4-2, the events "Did Well on Midterm" and "Studying for Exam" are

A) collective exhaustive.
B) statistically dependent.
C) mutually exclusive.
D) none of the above
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13
If the outcome of event A is not affected by event B, then events A and B are said to be

A) collectively exhaustive.
B) mutually exclusive.
C) statistically independent.
D) none of the above
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14
 TABLE 4-1 \text { TABLE 4-1 } Mothers Against Drunk Driving is a very visible group whose main focus is to educate the public about the harm caused by drunk drivers. A study was recently done that emphasized the problem we all face with drinking and driving. Four hundred accidents that occurred on a Saturday night were analyzed. Two items noted were the number of vehicles involved and whether alcohol played a role in the accident. The numbers are shown below:
\quad \quad \quad \quad \quad  Number of Vehicles Involved \text { Number of Vehicles Involved }
 Did alcohol playa role? 123 Totals  Yes 5010020170 No 2517530230 Totals 7527550400\begin{array}{lccccc}\text { Did alcohol playa role? } & 1 && 2 & 3 & \text { Totals } \\\hline \text { Yes } & 50 & & 100 & 20 & 170 \\\hline \text { No } & 25 & & 175 & 30 & 230 \\ \text { Totals } & 75 && 275 & 50 & 400 &\\\hline \end{array}


-Referring to Table 4-1, given alcohol was involved, what proportion of accidents involved a single vehicle?

A) 120/400 or 30%
B) 50/170 or 29.41%
C) 120/170 or 70.59%
D) 50/75 or 66.67%
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15
The collection of all possible events is called

A) the null set.
B) a simple probability.
C) a joint probability.
D) a sample space.
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16
A business venture can result in the following outcomes (with their corresponding chance of occurring in parentheses): Highly Successful (10%), Successful (25%), Break Even (25%), Disappointing (20%), and Highly Disappointing (?). If these are the only outcomes possible for the business venture, what is the chance that the business venture will be considered Highly Disappointing?

A) 20%
B) 15%
C) 25%
D) 10%
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17
The closing price of a company's stock tomorrow can be lower, higher or the same as today's closing price. After evaluating all the information available on the company's fundamentals and the economic environment, an analyst has determined that the probability that tomorrow's closing price will be higher than today's is determined to be 25%. This is an example of using which of the following probability approach?

A) a priori classical probability
B) subjective probability
C) conditional probability
D) empirical classical probability
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18
TABLE 4-1
Mothers Against Drunk Driving is a very visible group whose main focus is to educate the public about the harm caused by drunk drivers. A study was recently done that emphasized the problem we all face with drinking and driving. Four hundred accidents that occurred on a Saturday night were analyzed. Two items noted were the number of vehicles involved and whether alcohol played a role in the accident. The numbers are shown below:
\quad \quad \quad \quad \quad  Number of Vehicles Involved \text { Number of Vehicles Involved }
 Did alcohol playa role? 123 Totals  Yes 5010020170 No 2517530230 Totals 7527550400\begin{array}{lccccc}\text { Did alcohol playa role? } & 1 & &2 & 3 & \text { Totals } \\\hline \text { Yes } & 50 & & 100 & 20 & 170 \\\hline \text { No } & 25 & & 175 & 30 & 230 \\ \text { Totals } & 75 & &275 & 50 & 400 &\\\hline \end{array}


-Referring to Table 4-1, what proportion of accidents involved alcohol or a single vehicle?

A) 25/400 or 6.25%
B) 195/400 or 48.75%
C) 50/400 or 12.5%
D) 245/400 or 61.25%
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19
If event A and event B cannot occur at the same time, then events A and B are said to be

A) mutually exclusive.
B) collectively exhaustive.
C) statistically independent.
D) none of the above
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20
The employees of a company were surveyed on questions regarding their educational background and marital status. Of the 600 employees, 400 had college degrees, 100 were single, and 60 were single college graduates. What is the probability that an employee of the company does not have a college degree?

A) 0.33
B) 0.67
C) 0.75
D) 0.10
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21
TABLE 4-2
An alcohol awareness task force at a Big-Ten university sampled 200 students after the midterm to ask them whether they went bar hopping the weekend before the midterm or spent the weekend studying, and whether they did well or poorly on the midterm. The following result was obtained.
 Did Well on MidtermDid Poorlyon Midterm  Studyingror Exam 8020 Went Bar Hopping 3070\begin{array}{l}\begin{array} { lcc} &\text { Did Well on Midterm}& \text {Did Poorlyon Midterm }\\\hline \text { Studyingror Exam } & 80 & 20 \\\text { Went Bar Hopping } & 30 & 70\end{array}\end{array}


-Referring to Table 4-2, what is the probability that a randomly selected student did well on the midterm or went bar hopping the weekend before the midterm?

A) 30/200 or 15%
B) (30 + 70)/200 or 50%
C) (80 + 30 + 70)/200 or 90%
D) (80 + 30)/200 or 55%
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22
A recent survey of banks revealed the following distribution for the interest rate being charged on a home loan (based on a 30-year mortgage with a 10% down payment). If a bank is selected at random from this distribution, what is the chance that the interest rate charged on a home loan will exceed 8.0%?
 Interest Rate 7.0%7.5%8.0%8.5%>8.5% Probability 0.120.230.240.350.06\begin{array} { l | l l l l l } \text { Interest Rate } & 7.0 \% & 7.5 \% & 8.0 \% & 8.5 \%& > 8.5 \% \\\hline \text { Probability } & 0.12 & 0.23 & 0.24 & 0.35 & 0.06\end{array}

A) 0.06
B) 0.59
C) 0.41
D) 1.00
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23
If two equally likely events A and B are collectively exhaustive, what is the probability that event A occurs?

A) 0
B) 1.00
C) 0.50
D) cannot be determined from the information given
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24
The employees of a company were surveyed on questions regarding their educational background and marital status. Of the 600 employees, 400 had college degrees, 100 were single, and 60 were single college graduates. What is the probability that an employee of the company is married and has a college degree?

A) 500/600
B) 340/600
C) 400/600
D) 40/600
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25
If two events are independent, what is the probability that they both occur?
A) 0

A) 1.00
B) 0.50
B) cannot be determined from the information given
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26
The probability that house sales will increase in the next 6 months is estimated to be 0.25. The probability that the interest rates on housing loans will go up in the same period is estimated to be 1.. The probability that house sales or interest rates will go up during the next 6 months is estimated to be 0.89. The events of increase in house sales and no increase in house sales in the next 6 months are

A) statistically independent.
B) collectively exhaustive.
C) mutually exclusive.
D) both B and C
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27
If two events are mutually exclusive, what is the probability that both occur at the same time?

A) 1.00
B) 0
C) 0.50
D) cannot be determined from the information given
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28
TABLE 4-1
Mothers Against Drunk Driving is a very visible group whose main focus is to educate the public about the harm caused by drunk drivers. A study was recently done that emphasized the problem we all face with drinking and driving. Four hundred accidents that occurred on a Saturday night were analyzed. Two items noted were the number of vehicles involved and whether alcohol played a role in the accident. The numbers are shown below:
 Number of Vehicles Involved  Did alcohol play a role? 123 Totals  Yes 5010020170 No 2517530230 Totals 7527550400\begin{array}{l}\text { Number of Vehicles Involved }\\\begin{array} { l c c c c } \text { Did alcohol play a role? } & 1 & 2 & 3 & \text { Totals } \\\hline \text { Yes } & 50 & 100 & 20 & 170 \\\hline \text { No } & 25 & 175 & 30 & 230 \\\text { Totals } & 75 & 275 & 50 & 400 \\\hline\end{array}\end{array}

-Referring to Table 4-1, what proportion of accidents involved more than one vehicle?

A) 50/400 or 12.5%
B) 325/400 or 81.25%
C) 75/400 or 18.75%
D) 275/400 or 68.75%
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29
According to a survey of American households, the probability that the residents own 2 cars if annual household income is over $25,000 is 80%. Of the households surveyed, 60% had incomes over $25,000 and 70% had 2 cars. What is the probability that the residents do not own 2 cars if annual household income is not over $25,000?

A) 0.45
B) 0.70
C) 0.12
D) 0.18
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30
The probability that house sales will increase in the next 6 months is estimated to be 0.25. The probability that the interest rates on housing loans will go up in the same period is estimated to be 0.74. The probability that house sales or interest rates will go up during the next 6 months is estimated to be 0.89. What is the probability that house sales will increase but interest rates will not during the next 6 months?

A) 0.89
B) 0.15
C) 0.065
D) 0.51
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31
The probability that house sales will increase in the next 6 months is estimated to be 0.25. The probability that the interest rates on housing loans will go up in the same period is estimated to be 0.74. The probability that house sales or interest rates will go up during the next 6 months is estimated to be 0.89. What is the probability that neither house sales nor interest rates will increase during the next 6 months?

A) 0.90
B) 0.11
C) 0.195
D) 0.89
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32
TABLE 4-1
Mothers Against Drunk Driving is a very visible group whose main focus is to educate the public about the harm caused by drunk drivers. A study was recently done that emphasized the problem we all face with drinking and driving. Four hundred accidents that occurred on a Saturday night were analyzed. Two items noted were the number of vehicles involved and whether alcohol played a role in the accident. The numbers are shown below:
 Number of Vehicles Involved  Did alcohol playa role? 123 Totals  Yes 5010020170 No 2517530230 Totals 7527550400\begin{array}{l}\text { Number of Vehicles Involved }\\\begin{array} { l c l l l c } \hline \text { Did alcohol playa role? } & 1 & 2 & 3 & \text { Totals } \\\hline \text { Yes } & 50 & 100 & 20 & 170 \\\hline \text { No } & 25 & 175 & 30 & 230 \\\text { Totals } & 75 & 275 & 50 & 400 \\\hline\end{array}\end{array}

-Referring to Table 4-1, given that alcohol was not involved, what proportion of the accidents were single vehicle?

A) 25/75 or 33.33%
B) 50/170 or 29.41%
C) 50/75 or 66.67%
D) 25/230 or 10.87%
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33
According to a survey of American households, the probability that the residents own 2 cars if annual household income is over $25,000 is 80%. Of the households surveyed, 60% had incomes over $25,000 and 70% had 2 cars. What is the probability that annual household income is over $25,000 if the residents of a household own 2 cars?

A) 0.48
B) 0.50
C) 0.69
D) 0.42
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34
If two events are collectively exhaustive, what is the probability that both occur at the same time?

A) 1.00
B) 0
C) 0.50
D) cannot be determined from the information given
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35
TABLE 4-1
Mothers Against Drunk Driving is a very visible group whose main focus is to educate the public about the harm caused by drunk drivers. A study was recently done that emphasized the problem we all face with drinking and driving. Four hundred accidents that occurred on a Saturday night were analyzed. Two items noted were the number of vehicles involved and whether alcohol played a role in the accident. The numbers are shown below:
 Number of Vehicles Involved  Did alcohol play a role? 123 Totals  Yes 5010020170 No 2517530230 Totals 7527550400\begin{array}{l}\text { Number of Vehicles Involved }\\\begin{array} { l c c c c } \text { Did alcohol play a role? } & 1 & 2 & 3 & \text { Totals } \\\hline \text { Yes } & 50 & 100 & 20 & 170 \\\hline \text { No } & 25 & 175 & 30 & 230 \\\text { Totals } & 75 & 275 & 50 & 400 \\\hline\end{array}\end{array}

-Referring to Table 4-1, given that alcohol was not involved, what proportion of the accidents were multiple vehicle?

A) 120/170 or 70.59%
B) 50/170 or 29.41%
C) 205/230 or 89.13%
D) 25/230 or 10.87%
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36
If events A and B are mutually exclusive and collectively exhaustive, what is the probability that event A occurs?

A) 1.00
B) 0
C) 0.50
D) cannot be determined from the information given
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37
TABLE 4-1
Mothers Against Drunk Driving is a very visible group whose main focus is to educate the public about the harm caused by drunk drivers. A study was recently done that emphasized the problem we all face with drinking and driving. Four hundred accidents that occurred on a Saturday night were analyzed. Two items noted were the number of vehicles involved and whether alcohol played a role in the accident. The numbers are shown below:
 Number of Vehicles Involved  Did alcohol playa role? 123 Totals  Yes 5010020170 No 2517530230 Totals 7527550400\begin{array}{l}\text { Number of Vehicles Involved }\\\begin{array} { l c c c c c } { \text { Did alcohol playa role? } } & 1 & 2 & 3 & \text { Totals } \\\hline \text { Yes } & 50 & 100 & 20 & 170 \\\hline \text { No } & 25 & 175 & 30 & 230 \\\text { Totals } & 75 & 275 & 50 & 400 \\\hline\end{array}\end{array}

-Referring to Table 4-1, given that multiple vehicles were involved, what proportion of accidents involved alcohol?

A) 120/400 or 30%
B) 120/170 or 70.59%
C) 120/325 or 36.92%
D) 120/230 or 52.17%
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38
The employees of a company were surveyed on questions regarding their educational background and marital status. Of the 600 employees, 400 had college degrees, 100 were single, and 60 were single college graduates. What is the probability that an employee of the company is single or has a college degree?

A) 0.25
B) 0.733
C) 0.10
D) 0.667
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39
The probability that a new advertising campaign will increase sales is assessed as being 0.80. The probability that the cost of developing the new ad campaign can be kept within the original budget allocation is 0.40. Assuming that the two events are independent, what is the probability that the cost is not kept within budget or the campaign will not increase sales?

A) 0.68
B) 0.32
C) 0.12
D) 0.88
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40
A company has 2 machines that produce widgets. An older machine produces 23% defective widgets, while the new machine produces only 8% defective widgets. In addition, the new machine produces 3 times as many widgets as the older machine does. What is the probability that a randomly chosen widget produced by the company is defective?

A) 0.078
B) 0.156
C) 0.1175
D) 0.310
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41
Simple probability is also called

A) Bayes' theorem.
B) joint probability.
C) conditional probability.
D) marginal probability.
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42
If two equally likely events A and B are mutually exclusive, what is the probability that event A occurs?

A) 1.00
B) 0
C) 0.50
D) cannot be determined from the information given
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43
If two equally likely events A and B are mutually exclusive and collectively exhaustive, what is the probability that event A occurs?
A) 0

A) 1.00
B) 0.50
B) cannot be determined from the information given
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44
The probability that house sales will increase in the next 6 months is estimated to be 0.25. The probability that the interest rates on housing loans will go up in the same period is estimated to be 0.74. The probability that house sales or interest rates will go up during the next 6 months is estimated to be 0.89. What is the probability that both house sales and interest rates will increase during the next 6 months?

A) 0.90
B) 0.10
C) 0.705
D) 0.185
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45
 TABLE 4-2 \text { TABLE 4-2 } An alcoholawareness task force at a Big-Ten universitysampled 200 studentsafter the midterm toask them whether they went barhopping the weekend before the midterm orspent the weekend studying,and whetherthey did well or poorly on the midterm. The following result was obtained.

Did Well on Midterm  Did Poorly on MidtermStudying for Exam 8020Went Bar Hopping 3070\begin{array}{l|cc} & \text {Did Well on Midterm }&\text { Did Poorly on Midterm} \\\hline \text {Studying for Exam }& 80 & 20 \\\text {Went Bar Hopping }& 30 & 70\end{array}


-Referring to Table 4-2, what is the probability that a randomly selected student who went bar hopping will do well on the midterm?

A) 30/200 or 15%
B) 30/110 or 27.27%
C) (100/200) × (110/200) or 27.50%
D) 30/100 or 30%
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46
When using the general multiplication rule, P(A and

A) P(B)/P(A).
B) P(A|B)P(B).
B) is equal to
C) P(A)P(B).
D) P(A)/P(B).
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47
If two events are mutually exclusive and collectively exhaustive, what is the probability that both occur?

A) 1.00
B) 0
C) 0.50
D) cannot be determined from the information given
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48
A company has 2 machines that produce widgets. An older machine produces 23% defective widgets, while the new machine produces only 8% defective widgets. In addition, the new machine produces 3 times as many widgets as the older machine does. Given that a widget was produced by the new machine, what is the probability it is not defective?

A) 0.06
B) 0.50
C) 0.94
D) 0.92
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49
Selection of raffle tickets from a large bowl is an example of

A) subjective probability.
B) sampling without replacement.
C) sampling with replacement.
D) none of the above
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50
According to a survey of American households, the probability that the residents own 2 cars if annual household income is over $25,000 is 80%. Of the households surveyed, 60% had incomes over $25,000 and 70% had 2 cars. What is the probability that annual household income is over $25,000 if the residents of a household do not own 2 cars?

A) 0.12
B) 0.18
C) 0.70
D) 0.40
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51
TABLE 4-2
An alcohol awareness task force at a Big-Ten university sampled 200 students after the midterm to ask them whether they went bar hopping the weekend before the midterm or spent the weekend studying, and whether they did well or poorly on the midterm. The following result was obtained.

Did Well on MidtermDid Poorly on MidtermStudying for Exam 8020Went Bar Hopping3070\begin{array}{l|cc} & \text {Did Well on Midterm} & \text {Did Poorly on Midterm} \\\hline\text {Studying for Exam }& 80 & 20 \\\text {Went Bar Hopping} & 30 & 70\end{array}


-Referring to Table 4-2, the events "Did Well on Midterm" and "Studying for Exam" are

A) not statistically dependent.
B) collective exhaustive.
C) not mutually exclusive.
D) none of the above
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52
According to a survey of American households, the probability that the residents own 2 cars if annual household income is over $25,000 is 80%. Of the households surveyed, 60% had incomes over $25,000 and 70% had 2 cars. What is the probability that the residents of a household own 2 cars and have an income less than or equal to $25,000 a year?

A) 0.22
B) 0.48
C) 0.12
D) 0.18
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53
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. TABLE 4-3
A survey is taken among customers of a fast-food restaurant to determine preference for hamburger or chicken. Of 200 respondents selected, 75 were children and 125 were adults. 120 preferred hamburger and 80 preferred chicken. 55 of the children preferred hamburger.

-Referring to Table 4-3, the probability that a randomly selected individual is an adult is________
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54
TABLE 4-2
An alcohol awareness task force at a Big-Ten university sampled 200 students after the midterm to ask them whether they went bar hopping the weekend before the midterm or spent the weekend studying, and whether they did well or poorly on the midterm. The following result was obtained.

Did Well on MidtermDid Poorly on MidtermStudying for Exam 8020Went Bar Hopping3070\begin{array}{l|cc} & \text {Did Well on Midterm} & \text {Did Poorly on Midterm} \\\hline\text {Studying for Exam }& 80 & 20 \\\text {Went Bar Hopping} & 30 & 70\end{array}


-Referring to Table 4-2, the events "Did Well on Midterm" and "Did Poorly on Midterm" are

A) collective exhaustive.
B) statistically dependent.
C) mutually exclusive.
D) all of the above
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55
TABLE 4-2
An alcohol awareness task force at a Big-Ten university sampled 200 students after the midterm to ask them whether they went bar hopping the weekend before the midterm or spent the weekend studying, and whether they did well or poorly on the midterm. The following result was obtained.

Did Well on MidtermDid Poorly on MidtermStudying for Exam 8020Went Bar Hopping3070\begin{array}{l|cc} & \text {Did Well on Midterm} & \text {Did Poorly on Midterm} \\\hline\text {Studying for Exam }& 80 & 20 \\\text {Went Bar Hopping} & 30 & 70\end{array}


-Referring to Table 4-1, given that 3 vehicles were involved, what proportion of accidents involved alcohol?

A) 20/50 or 40%
B) 20/170 or 11.77%
C) 20/400 or 5%
D) 20/30 or 66.67%
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56
 TABLE 4-2 \text { TABLE 4-2 } An alcohol awareness task force at a Big-Ten university sampled 200 students after the midterm to ask them whether they went bar hopping the weekend before the midterm or spent the weekend studying, and whether they did well or poorly on the midterm. The following result was obtained.
 Did Well on MidtermDid Poorlyon Midterm  Studyingror Exam 8020 Went Bar Hopping 3070\begin{array}{l}\begin{array} { lcc} &\text { Did Well on Midterm}& \text {Did Poorlyon Midterm }\\\hline \text { Studyingror Exam } & 80 & 20 \\\text { Went Bar Hopping } & 30 & 70\end{array}\end{array}


-Referring to Table 4-2, what is the probability that a randomly selected student did well on the midterm and also went bar hopping the weekend before the midterm?

A) (80 + 30)/200 or 55%
B) 30/200 or 15%
C) (80 + 30 + 70)/200 or 90%
D) (30 + 70)/200 or 50%
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57
The closing price of a company's stock tomorrow can be lower, higher or the same as today's closed. Without any prior information that may affect the price of the stock tomorrow, the probability that it will close higher than today's close is 1/3. This is an example of using which of the following probability approach?

A) subjective probability
B) a priori classical probability
C) empirical classical probability
D) conditional probability
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58
If two events are mutually exclusive, what is the probability that one or the other occurs?

A) 0.50
B) 0
C) 1.00
D) cannot be determined from the information given
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59
According to a survey of American households, the probability that the residents own 2 cars if annual household income is over $25,000 is 80%. Of the households surveyed, 60% had incomes over $25,000 and 70% had 2 cars. What is the probability that the residents of a household own 2 cars and have an income over $25,000 a year?

A) 0.18
B) 0.22
C) 0.48
D) 0.12
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60
TABLE 4-1
Mothers Against Drunk Driving is a very visible group whose main focus is to educate the public about the harm caused by drunk drivers. A study was recently done that emphasized the problem we all face with drinking and driving. Four hundred accidents that occurred on a Saturday night were analyzed. Two items noted were the number of vehicles involved and whether alcohol played a role in the accident. The numbers are shown below:
 Number of Vehicles Involved  Did alcohol playa role? 123 Totals  Yes 5010020170 No 2517530230 Totals 7527550400\begin{array}{l}\text { Number of Vehicles Involved }\\\begin{array} { l c c c c } \text { Did alcohol playa role? } & 1 & 2 & 3 & \text { Totals } \\\hline \text { Yes } & 50 & 100 & 20 & 170 \\\hline \text { No } & 25 & 175 & 30 & 230 \\\text { Totals } & 75 & 275 & 50 & 400 \\\hline\end{array}\end{array}

-Referring to Table 4-1, what proportion of accidents involved alcohol and a single vehicle?

A) 50/400 or 12.5%
B) 25/400 or 6.25%
C) 195/400 or 48.75%
D) 245/400 or 61.25%
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61
TABLE 4-3
A survey is taken among customers of a fast-food restaurant to determine preference for hamburger or chicken. Of 200 respondents selected, 75 were children and 125 were adults. 120 preferred hamburger and 80 preferred chicken. 55 of the children preferred hamburger.

-Referring to Table 4-3, assume we know the person is a child. The probability that this individual prefers hamburger is ______.
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62
A debate team of 4 is to be chosen from a class of 35. There are two twin brothers in the class. How many possible ways can the team be formed which will include both of the twin brothers?
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63
TABLE 4-4
Suppose that patrons of a restaurant were asked whether they preferred beer or whether they preferred wine. 70% said that they preferred beer. 60% of the patrons were male. 80% of the males preferred beer.

-Referring to Table 4-4, suppose a randomly selected patron prefers beer. Then the probability the patron is a male is _______.
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64
TABLE 4-5
In a meat packaging plant Machine A accounts for 60% of the plant's output, while Machine B accounts for 40% of the plant's output. In total, 4% of the packages are improperly sealed. Also, 3% of the packages are from Machine A and are improperly sealed.

-Referring to Table 4-5, if a package selected at random is improperly sealed, the probability that it came from machine A is_______ .
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65
TABLE 4-8
According to the record of the registrar's office at a state university, 35% of the students are freshman, 25% are sophomore, 16% are junior and the rest are senior. Among the freshmen, sophomores, juniors and seniors, the portion of students who live in the dormitory are, respectively, 80%, 60%, 30% and 20%.
Referring to Table 4-8, if a randomly selected student does not live in the dormitory, what is the probability that the student is a junior or a senior?
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66
An exploration team of 2 women and 3 men is to be chosen from a candidate pool of 6 women and 7 men. How many different ways can this team of 5 be formed?
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67
TABLE 4-4
Suppose that patrons of a restaurant were asked whether they preferred beer or whether they preferred wine. 70% said that they preferred beer. 60% of the patrons were male. 80% of the males preferred beer.

-Referring to Table 4-4, the probability a randomly selected patron prefers wine is_____.
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68
Suppose A and B are events where P(A) = 0.4, P(B) = 0.5, and P(A andB) = 0.1. Then P(B|A)= _______.
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69
  A survey conducted by the Segal Company of New York found that in a sample of 189 large companies, 40 offered stock options to their board members as part of their non-cash compensation packages. For small- to mid-sized companies, 43 of the 180 surveyed indicated that they offer stock options as part of their noncash compensation packages to their board members. Referring to Table 4-9, if a randomly selected company is a large company, what is the probability that it offered stock options to their board members? A survey conducted by the Segal Company of New York found that in a sample of 189 large companies, 40 offered stock options to their board members as part of their non-cash compensation packages. For small- to mid-sized companies, 43 of the 180 surveyed indicated that they offer stock options as part of their noncash compensation packages to their board members.
Referring to Table 4-9, if a randomly selected company is a large company, what is the probability that it offered stock options to their board members?
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70
TABLE 4-5
In a meat packaging plant Machine A accounts for 60% of the plant's output, while Machine B accounts for 40% of the plant's output. In total, 4% of the packages are improperly sealed. Also, 3% of the packages are from Machine A and are improperly sealed.

-Referring to Table 4-5, if a package selected at random came from Machine B, the probability that it is properly sealed is _______.
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71
TABLE 4-5
In a meat packaging plant Machine A accounts for 60% of the plant's output, while Machine B accounts for 40% of the plant's output. In total, 4% of the packages are improperly sealed. Also, 3% of the packages are from Machine A and are improperly sealed.

-Referring to Table 4-5, if a package selected at random came from Machine B, the probability that it is improperly sealed is ______.
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72
TABLE 4-9
A survey conducted by the Segal Company of New York found that in a sample of 189 large companies, 40 offered stock options to their board members as part of their non-cash compensation packages. For small- to mid-sized companies, 43 of the 180 surveyed indicated that they offer stock options as part of their noncash compensation packages to their board members.
Referring to Table 4-9, is the size of the company statistically independent of whether stock options are offered to their board members and why?
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73
TABLE 4-8
According to the record of the registrar's office at a state university, 35% of the students are freshman, 25% are sophomore, 16% are junior and the rest are senior. Among the freshmen, sophomores, juniors and seniors, the portion of students who live in the dormitory are, respectively, 80%, 60%, 30% and 20%.
Referring to Table 4-8, what percentage of the students live in a dormitory?
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74
  Are whites more likely to claim bias? It was found that 60% of the workers were white, 30% were black and 10% are other races. Given that a worker was white, the probability that the worker had claimed bias was 30%. Given that a worker was black, the probability that the worker had claimed bias was 40%. Given that a worker was other race, the probability that the worker had claimed bias was 0%. Referring to Table 4-10, if a randomly selected worker had not claimed bias, what is the probability that the worker is white? Are whites more likely to claim bias? It was found that 60% of the workers were white, 30% were black and 10% are other races. Given that a worker was white, the probability that the worker had claimed bias was 30%. Given that a worker was black, the probability that the worker had claimed bias was 40%. Given that a worker was other race, the probability that the worker had claimed bias was 0%.
Referring to Table 4-10, if a randomly selected worker had not claimed bias, what is the probability that the worker is white?
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75
TABLE 4-6
At a Texas college, 60% of the students are from the southern part of the state, 30% are from the northern part of the state, and the remaining 10% are from out-of-state. All students must take and pass an Entry Level Math (ELM) test. 60% of the southerners have passed the ELM, 70% of the northerners have passed the ELM, and 90% of the out-of-staters have passed the ELM.

-Referring to Table 4-6, the probability that a randomly selected student is not from southern Texas and has not passed the ELM is _______.
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76
Suppose A and B are independent events where P(A) = 0.4 and P(B) = 0.5. Then P(A andB) =____
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77
At the International Pancakes Hut, there are 4 different ways to have an egg cooked, 7 different choices of pancakes, 5 different types of syrups and 8 different beverages. How many different ways are there to order an egg, a pancake with a choice of syrup and a beverage?
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78
TABLE 4-9
A survey conducted by the Segal Company of New York found that in a sample of 189 large companies, 40 offered stock options to their board members as part of their non-cash compensation packages. For small- to mid-sized companies, 43 of the 180 surveyed indicated that they offer stock options as part of their noncash compensation packages to their board members.
Referring to Table 4-9, if a randomly selected company offered stock options to their board member, what is the probability that it is a large company?
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79
Suppose A and B are events where P(A) = 0.4, P(B) = 0.5, and P(A andB) = 0.1. Then P(A|B)= ______.
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80
Eleven freshmen are to be assigned to eleven empty rooms in a student dormitory. Each room is considered unique so that it matters who is being assigned to which room. How many different ways can those eleven freshmen be allocated?
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