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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.
Question 23
True/False
The largest value that a Poisson random variable X can have is n.
Question 24
True/False
In a Poisson distribution, the mean and standard deviation are equal.
Question 25
Multiple Choice
A multiple-choice test has 30 questions. There are 4 choices for each question. A student who has not studied for the test decides to answer all questions randomly. What type of probability distribution can be used to figure out his chance of getting at least 20 questions right?
Question 26
True/False
In a Poisson distribution, the mean and variance are equal.
Question 27
True/False
If π remains constant in a binomial distribution, an increase in n will not change the mean.
Question 28
True/False
If π remains constant in a binomial distribution, an increase in n will increase the variance.
Question 29
True/False
The number of males selected in a sample of 5 students taken without replacement from a class of 9 females and 18 males has a binomial distribution.
Question 30
True/False
The number of customers arriving at a department store in a 5-minute period has a binomial distribution.
Question 31
Multiple Choice
A lab orders 100 rats a week for each of the 52 weeks in the year for experiments that the lab conducts. Suppose the mean cost of rats used in lab experiments turned out to be $13.00 per week. Interpret this value.