Quiz 2 QMB

Calculating the probability of drawing three aces with a random sample of five cards from a standard 52-card deck is using ________ probability.

Classical

________ probability is used when we know the number of possible outcomes of the event of interest and the total number of possible outcomes in the sample space.

Classical

When the discrete random variable is expressed in terms of dollars, the mean of the distribution is known as the ________________________.

Expected Monetary Value

A discrete random variable that follows the Poisson distribution with a mean equal to λ has a counterpart continuous random variable that follows the ________ distribution with a mean equal to μ = 1/λ.

Exponential

A normal probability distribution's standard deviation (σ) completely describes its shape.

False

According to the Central Limit Theorem, if a distribution follows a bell-shaped, symmetrical curve centered around the mean, approximately 68, 95, and 99.7 percent of its values will fall within one, two, and three standard deviations above and below the mean respectively.

False

An exponential probability distribution allows us to calculate the probability of a specific number of successes for a certain number of trials.

False

If you are counting the number of customers visiting your store on a given day, you are working with continuous data.

False

The addition rule is used to determine the probability of the intersection (joint probability) of two events occurring, or P(A and B).

False

The exponential probability distribution is a discrete distribution that is often used to describe time between customer arrivals.

False

The standard deviation of the continuous uniform distribution is equal to the mean of this distribution.

False

The z-score follows a normal distribution with μ = 1 and σ = 0, which is known as the standard normal distribution.

False

The shape of the uniform probability distribution is ________.

Flat

The ________of Events A and B represents the number of instances in which both Events A and B occur at the same time.

Intersection

The ________ probability distribution is bell-shaped and symmetrical.

Normal

The mean and the variance are equal for a ________ probability distribution.

Poisson

________ probability represents the likelihood of a single event occurring by itself.

Simple

The ________ of a discrete probability distribution measures the dispersion of each outcome of the random variable from the mean of the distribution.

Standard Deviation

At the beginning of a Major League Baseball season, a panel of sports writers decided that the Los Angeles Dodgers were the most likely team to win the World Series that year. This is an example of using ________ probability.

Subjective

________ probability is used when we rely on experience and intuition to estimate the likelihood of an event.

Subjective

Which of the following is not a characteristic of a Poisson experiment? A. The number of occurrences during one interval has to be dependent of the number of occurrences in any other interval. B. The experiment consists of counting the number of occurrences of an event over a period of time, area, distance, or any other type of measurement. C. The mean of the Poisson distribution has to be the same for each interval of measurement D. The intervals that are defined in the Poisson process cannot be overlapping.

The number of occurrences during one interval has to be dependent of the number of occurrences in any other interval.

Which of the following is not a characteristic of a binomial experiment? A. The probability of a success must exceed the probability of a failure. B. The experiment consists of a fixed number of trials. C. Each trial is independent of the other trials in the experiment. D. Each trial has only two possible outcomes—a success or a failure.

The probability of a success must exceed the probability of a failure.

A listing of all the possible outcomes of an experiment for a discrete random variable along with the relative frequency of each outcome is called a discrete probability distribution.

True

A probability is a numerical value that indicates the chance, or likelihood, of a specific event occurring.

True

An expected value is another term for the mean of a probability distribution.

True

Discrete random variables have outcomes that typically take on whole numbers as a result of conducting an experiment.

True

Rating the satisfaction of a hotel room on a 1-5 scale is an example of a discrete random variable.

True

Testing whether a part is defective or not defective after it has been manufactured would be best described using a binomial probability distribution.

True

The area under the curve of the normal probability distribution is always equal to 1.0.

True

The complement to Event A is defined as all of the outcomes in the sample space that are not part of Event A.

True

The left and right ends of the normal probability distribution extend indefinitely, never quite touching the horizontal axis.

True

The mathematical expression that describes the shape of the curve for the exponential distribution is known as the exponential probability density function.

True

The number of typographical errors found in a manuscript would best be described using a Poisson probability distribution.

True

The z-score in a normal probability distribution determines the number of standard deviations that a particular value, x, is from the mean.

True

When two events are independent, the probability of them both occurring is simply the product of their individual probabilities of occurring.

True

With the continuous uniform probability distribution, the probability of any interval in the distribution is equal to any other interval with the same width.

True

The ________ probability distribution describes data where all the values have the same chance of occurring.

Uniform

A smaller standard deviation for the normal probability distribution results in A. a fatter curve that is tighter and taller around the mean. B. a skinnier curve that is more spread out around the mean and not as tall. C. a skinnier curve that is tighter and taller around the mean. D. a fatter curve that is more spread out around the mean and not as tall.

a skinnier curve that is tighter and taller around the mean.

The ________ probability distribution is used to describe data where lower values tend to dominate and higher values don't occur very often.

exponential

The probability of the intersection of two events is known as a ________ probability.

joint

The shape of the exponential distribution is ________.

right-skewed

Which of the following statements is true regarding z-scores for the normal probability distribution? A. z-scores are negative for values of x that are less than the distribution mean. B. z-scores are positive for values of x that are less than the distribution mean. C. z-scores are zero for values of x that are less than the distribution mean. D. z-scores are equal to 1.0 for values of x that are equal to the distribution mean.f

z-scores are negative for values of x that are less than the distribution mean.