Business Stats Ch.4 Quiz

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Question 4 If two events are mutually exclusive, what is the probability that both occur at the same time? a) 0 b) 0.50 c) 1.00 d) Cannot be determined from the information given.

a) 0

Question 5 If two events are mutually exclusive and collectively exhaustive, what is the probability that both occur? a) 0 b) 0.50 c) 1.00 d) Cannot be determined from the information given.

a) 0

Question 22 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. The probability that neither house sales nor interest rates will increase during the next 6 months is: a) 0.11 b) 0.195 c) 0.89 d) 0.90

a) 0.11

Question 17 Simple probability is also called a) marginal probability. b) joint probability. c) conditional probability. d) Bayes' theorem.

a) marginal probability.

Question 13 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) statistically independent c) collectively exhaustive d) None of the above

a) mutually exclusive

Question 23 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. The probability that house sales will increase but interest rates will not during the next 6 months is: a) 0.065 b) 0.15 c) 0.51 d) 0.89

b) 0.15

Question 24 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, the probability that the cost is kept within budget and the campaign will increase sales is: a) 0.20 b) 0.32 c) 0.40 d) 0.88

b) 0.32

Question 21 The employees of a company were surveyed on questions regarding their educational background (college degree or no college degree) and marital status (single or married). Of the 600 employees, 400 had college degrees, 100 were single, and 60 were single college graduates. The probability that an employee of the company does not have a college degree is: a) 0.10 b) 0.33 c) 0.67 d) 0.75

b) 0.33

Question 8 If two equally likely events A and B are mutually exclusive and collectively exhaustive, what is the probability that event A occurs? a) 0 b) 0.50 c) 1.00 d) Cannot be determined from the information given.

b) 0.50

Question 20 The employees of a company were surveyed on questions regarding their educational background (college degree or no college degree) and marital status (single or married). Of the 600 employees, 400 had college degrees, 100 were single, and 60 were single college graduates. The probability that an employee of the company is married and has a college degree is: a) 40/600 b) 340/600 c) 400/600 d) 500/600

b) 340/600

Question 15 The collection of all possible events is called a) a simple probability. b) a sample space. c) a joint probability. d) the null set.

b) a sample space.

Question 12 If the outcome of event A is not affected by event B, then events A and B are said to be a) mutually exclusive b) statistically independent c) collectively exhaustive d) None of the above

b) statistically independent

Question 1 If two events are collectively exhaustive, what is the probability that one or the other occurs? a) 0 b) 0.50 c) 1.00 d) Cannot be determined from the information given.

c) 1.00

Question 6 If two events are mutually exclusive and collectively exhaustive, what is the probability that one or the other occurs? a) 0 b) 0.50 c) 1.00 d) Cannot be determined from the information given.

c) 1.00

Question 18 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) 10% b) 15% c) 20% d) 25%

c) 20%

Question 14 If either event A or event B must occur, then events A and B are said to be a) mutually exclusive b) statistically independent c) collectively exhaustive d) None of the above

c) collectively exhaustive

Question 19 The employees of a company were surveyed on questions regarding their educational background (college degree or no college degree) and marital status (single or married). Of the 600 employees, 400 had college degrees, 100 were single, and 60 were single college graduates. The probability that an employee of the company is single or has a college degree is: a) 0.10 b) 0.25 c) 0.667 d) 0.733

d) 0.733

Question 10 If two equally likely events A and B are collectively exhaustive, what is the probability that event A occurs? a) 0 b) 0.50 c) 1.00 d) Cannot be determined from the information given.