BNAD 276 Test 3

The area under a normal curve below its expected value is______

.5

The mean and the variance of the standard normal distribution are _____ respectively

0 and 1

An investment strategy has an expected return of 12 percent and a standard deviation of 10 percent. If investment returns are normally distributed, the probability of earning a return of more than 32 percent is CLOSEST to:

2.5%

For data that are normally distributed, the percentage of the data that falls within one standard deviation of the mean is...

68%

Which random variables is depicted with a bell-shaped curve?

a normal random variable

The shape of the graph depicting the normal probability density function is ______

bell shaped

The probability that a discrete random variable X assumes a particular value x is....

between zero and one

The inverse transformation, x= u + zo is used to________

compute x values for given probabilities

A random variable X with an equally likely chance of assuming any value within a specified range is said to have which distribution?

continuous uniform distribution

Suppose you were told that the delivery time of your new washing machine is equality likely over the time period 9am to noon. If we define the random variable X as delivery time, then X follows the...

continuous uniform distribution

For a continuous random variable X, the function used to find the area under f(x) up to any value x is called the...

cumulative distribution function

Due to symmetry, the probability that the standard normal random variable Z is greater than 0 is...

equal to .5

The total are under the normal curve is______

equal to 1

For a continuous random variable, one characteristic of its probability density function f(x) is that the area under f(x) over all values of x is....

equal to one

For a continuous random variable X it is only meaningful to calculate the probability that the value of the random variable...

falls within some specified interval

T/F: A discrete random variable can assume an uncountable number of values

false

For a continuous random variable X, how many distinct values can it assume over an interval?

infinite

For a continuous random variable X, the cumulative distribution function F(X) provides the probability that X is....

less than or equal to any value x

The normal distribution is completely described by two parameters...

mean and variance

What is an example of a continuous random variable?

normal random variable

The probability distribution of a continuous random variable is called its...

probability density function

If X is a normally distributed random variable, then...

the mean, the median, the mode are all equal

The z table provides the cumulative probabilities for a given z. What does 'cumulative probabilities' mean?

the probability that Z is less than or equal to a given z value

A manager of a women's clothing store is projecting next month's sales. Her low-end estimate of sales is $25,000 and her high-end estimate is $50,000. She decides to treat all outcomes for sales between these two values as equally likely. If we define the random variable X as sales, then X follows the...

uniform distribution

Which of the following BEST describes the shape of the normal distribution?

unimodal and symmetric

The probability that a continuous random variable X assumes a particular value x is_____

zero