Chapter 06 Discrete Probability Distributions Answer Key

True / False Questions

1. A random variable is a function or rule that assigns a numerical value to each

outcome in the sample space of a stochastic (chance) experiment.

TRUE

Review definition of random variable.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-01 Define a discrete random variable.
Topic: Discrete Distributions

2. A discrete random variable has a countable number of distinct values.

TRUE

Review definition of random variable.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-01 Define a discrete random variable.
Topic: Discrete Distributions
3. The expected value of a discrete random variable E(X) is the sum of all X values
weighted by their respective probabilities.

TRUE

Review definition of expected value.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Discrete Distributions

4. A discrete distribution can be described by its probability density function (PDF)

or by its cumulative distribution function (CDF).

TRUE

Review definition of PDF and CDF.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-03 Define probability distribution; PDF; and CDF.
Topic: Discrete Distributions
5. A random variable may be discrete or continuous, but not both.

TRUE

Review definition of discrete and continuous.

AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-01 Define a discrete random variable.
Topic: Discrete Distributions

6. To describe the number of blemishes per sheet of white bond paper, we would
use a discrete uniform distribution.

FALSE

Not all X values would be equally likely (Poisson distribution would be better).

AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution
7. The outcomes for the sum of two dice can be described as a discrete uniform
distribution.

FALSE

The sum of two uniforms is a triangular distribution, as shown in the textbook

example.

AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 06-04 Know the mean and variance of a uniform discrete model.
Topic: Uniform Distribution

8. A discrete binomial distribution is skewed right when π > .50.

FALSE

Most outcomes would be on the right, so a longer left tail exists.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution
9. When π = .70 the discrete binomial distribution is negatively skewed.

TRUE

Most outcomes would be on the right, so a longer left tail exists.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

10. The Poisson distribution describes the number of occurrences within a

randomly chosen unit of time or space.

TRUE

Poisson describes events per unit of time.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution
11. The Poisson distribution can be skewed either left or right, depending on λ.

FALSE

Poisson is always right-skewed.

AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

12. Although the shape of the Poisson distribution is positively skewed, it becomes
more nearly symmetric as its mean becomes larger.

TRUE

Although always right-skewed, the Poisson approaches a normal as the mean

increases.

AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution
13. As a rule of thumb, the Poisson distribution can be used to approximate a
binomial distribution when n ≥ 20 and π ≤ .05.

TRUE

The Poisson is a better approximation to binomial when n is large and π is

small.

AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-07 Use the Poisson approximation to the binomial (optional).
Topic: Poisson Distribution

14. The hypergeometric distribution is skewed right.

FALSE

The hypergeometric is skewed right if s/N < .50 (and conversely).

AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution
15. The hypergeometric distribution assumes that the probability of a success
remains the same from one trial to the next.

FALSE

The point of the hypergeometric is that π is not constant.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution

16. The hypergeometric distribution is not applicable if sampling is done with

replacement.

TRUE

The hypergeometric is used when there is no replacement in sampling from a

finite population

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution
17. As a rule of thumb, the binomial distribution can be used to approximate the
hypergeometric distribution whenever the population is at least 20 times as
large as the sample.

TRUE

The rule is to use the approximation if n/N < .05.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution

18. An example of a geometric random variable is the number of pine trees with
pine beetle infestation in a random sample of 15 pine trees in Colorado.

FALSE

This is a binomial experiment, assuming π is constant.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)
19. Calculating the probability of getting three aces in a hand of five cards dealt
from a deck of 52 cards would require the use of a hypergeometric
distribution.

TRUE

This is a hypergeometric experiment (no replacement).

AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution

20. The Poisson distribution is appropriate to describe the number of babies born
in a small hospital on a given day.

TRUE

Events per unit of time with no clear upper limit.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Poisson Distribution
21. The gender of a randomly chosen unborn child is a Bernoulli event.

TRUE

Two outcomes (0 or 1).

AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Bernoulli Distribution

22. The Poisson distribution has only one parameter.

TRUE

The one parameter is the mean.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution
23. The standard deviation of a Poisson random variable is the square root of its
mean.

TRUE

Review Poisson model.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

24. Customer arrivals per unit of time would tend to follow a binomial distribution.

FALSE

This would be a Poisson (arrivals per unit of time).

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution
25. The two outcomes (success, failure) in the Bernoulli model are equally likely.

FALSE

The probability of success need not be .50.

AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Bernoulli Distribution

26. The expected value of a random variable is its mean.

TRUE

The mean is another name for expected value.

AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Discrete Distributions

Multiple Choice Questions

27. A discrete probability distribution:

A. is a listing of all possible values of the random variable.

B. assigns a probability to each possible value of the random variable.
C. can assume values between -1 and +1.
D. is independent of the parameters of the distribution.

A discrete PDF assigns a probability to each X value.

AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 06-03 Define probability distribution; PDF; and CDF.
Topic: Discrete Distributions

28. The number of male babies in a sample of 10 randomly chosen babies is a:

A. continuous random variable.

B. Poisson random variable.
C. binary random variable.
D. binomial random variable.

Constant probability of success in n trials.

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Binomial Distribution
29. A discrete random variable:

A. can be treated as continuous when it has a large range of values.

B. cannot be treated as continuous.
C. is best avoided if at all possible.
D. is usually uniformly distributed.

Review definitions of discrete distributions.

AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 06-01 Define a discrete random variable.
Topic: Discrete Distributions

30. Which is not a discrete random variable?

A. The number of defects in a 4 × 8 sheet of plywood

B. The number of female passengers who board a plane
C. The time until failure of a vehicle headlamp
D. The number of correct answers on a statistics exam

Time is continuous.

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-01 Define a discrete random variable.
Topic: Discrete Distributions
31. Which is a not a discrete random variable?

A. The number of births in a hospital on a given day

B. The number of fives obtained in four rolls of a die
C. The hourly earnings of a call center employee in Boston
D. The number of applicants applying for a civil service job

Someone's earnings would be more like a continuous measurement.

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-01 Define a discrete random variable.
Topic: Discrete Distributions

32. Which statement is incorrect?

A. The Poisson distribution is always skewed right.

B. The binomial distribution may be skewed left or right.
C. The discrete uniform distribution is always symmetric.
D. The hypergeometric distribution is symmetric.

Review characteristics of the distributions. A hypergeometric is symmetric only if

s/N = .50.

AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution
33. The random variable X is the number of shots it takes before you make the first
free throw in basketball. Assuming the probability of success (making a free
throw) is constant from trial to trial, what type of distribution does X follow?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Geometric model describes the number of trials until the first success.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Geometric Distribution (Optional)
34. Which probability model is most nearly appropriate to describe the number of
burned-out fluorescent tubes in a classroom with 12 fluorescent tubes,
assuming a constant probability of a burned-out tube?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

n = 12 Bernoulli trials with fixed probability of success would be a binomial

model.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Binomial Distribution
35. Which distribution is most nearly appropriate to describe the number of
fatalities in Texas in a given year due to poisonous snakebites?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Events per unit of time with no clear upper limit would resemble a Poisson
distribution.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Poisson Distribution
36. Which model would you use to describe the probability that a call-center
operator will make the first sale on the third call, assuming a constant
probability of making a sale?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Geometric describes the number of trials to first success.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Geometric Distribution (Optional)
37. In a randomly chosen week, which probability model would you use to describe
the number of accidents at the intersection of two streets?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Events per unit of time with no clear upper limit would resemble a Poisson
distribution.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Poisson Distribution
38. Which model best describes the number of nonworking web URLs ("This page
cannot be displayed") you encounter in a randomly chosen minute while surfing
websites for Florida vacation rental condos?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Events per unit of time with no clear upper limit would resemble a Poisson
distribution.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Poisson Distribution
39. Which probability model would you use to describe the number of damaged
printers in a random sample of 4 printers taken from a shipment of 28 printers
that contains 3 damaged printers?

A. Poisson
B. Hypergeometric
C. Binomial
D. Uniform

Sampling (n = 4 printers) without replacement with known number of

"successes" (s = 3 damaged printers) in the population (N = 28 printers).

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Hypergeometric Distribution
40. Which model best describes the number of incorrect fare quotations by a well-
trained airline ticket agent between 2 p.m. and 3 p.m. on a particular Thursday.

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Events per unit of time with no clear upper limit would resemble a Poisson
distribution.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Poisson Distribution
41. Which model best describes the number of blemishes per sheet of white bond
paper?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Events per unit of area with no clear upper limit would resemble a Poisson
distribution.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Poisson Distribution
42. To ensure quality, customer calls for airline fare quotations are monitored at
random. On a particular Thursday afternoon, ticket agent Bob gives 40 fare
quotations, of which 4 are incorrect. In a random sample of 8 of these customer
calls, which model best describes the number of incorrect quotations Bob will
make?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Sampling (n = 8 calls selected) without replacement with known number of

"successes" (s = 4 incorrect quotes) in the population (N = 40 quotes).

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Hypergeometric Distribution
43. The number of people injured in rafting expeditions on the Colorado River on a
randomly chosen Thursday in August is best described by which model?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Independent events per unit of time with no clear upper limit would be Poisson.

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Poisson Distribution
44. On a particular Thursday in August, 40 Grand Canyon tourists enter a drawing
for a free mule ride. Ten of the entrants are European tourists. Five entrants are
selected at random to get the free mule ride. Which model best describes the
number of European tourists in the random sample?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Sampling (n = 5 tourists selected) without replacement with known number of

"successes" (s = 10 Europeans) in the population (N = 40).

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Hypergeometric Distribution
45. Which model best describes the number of births in a hospital until the first
twins are delivered?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Geometric distribution describes the number of trials until the first success.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Geometric Distribution (Optional)

46. On a randomly chosen Wednesday, which probability model would you use to
describe the number of convenience store robberies in Los Angeles?

A. Binomial
B. Poisson
C. Hypergeometric
D. Geometric

Events per unit of time with no clear upper limit.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Poisson Distribution
47. Which probability model would you use to describe the number of customers
served at a certain California Pizza Kitchen until the first customer orders split
pea soup?

A. Binomial
B. Geometric
C. Uniform
D. Poisson

Geometric distribution describes the number of trials until the first success.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 Select an appropriate discrete probability distribution from problem context.
Topic: Geometric Distribution (Optional)

48. Which distribution has a mean of 5?

A. Poisson with λ = 25.

B. Binomial with n = 200, π = .05
C. Hypergeometric with N = 100, n = 10, s = 50

Review model parameters. The hypergeometric mean is ns/N = (10)(50)/100 = 5.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution
49. Of the following, the one that most resembles a Poisson random variable is the
number of:

A. heads in 200 flips of a fair coin.

B. annual power failures at your residence.
C. face cards in a bridge hand of 13 cards.
D. defective CDs in a spool containing 15 CDs.

Independent arrivals per unit of time with no clear upper limit would be
Poisson.

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution
50. A charity raffle prize is $1,000. The charity sells 4,000 raffle tickets. One winner
will be selected at random. At what ticket price would a ticket buyer expect to
break even?

A. $0.50
B. $0.25
C. $0.75
D. $1.00

Expected winning is (1/4000) × $1000 = $0.25.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Discrete Distributions

51. A die is rolled. If it rolls to a 1, 2, or 3 you win $2. If it rolls to a 4, 5, or 6 you lose
$1. Find the expected winnings.

A. $0.50
B. $3.00
C. $1.50
D. $1.00

E(X) = (3/6) × $2 + (3/6) × (-$1) = $0.50.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Discrete Distributions
52. A fair die is rolled. If it comes up 1 or 2 you win $2. If it comes up 3, 4, 5, or 6
you lose $1. Find the expected winnings.

A. $0.00
B. $1.00
C. $0.50
D. $0.25

E(X) = (2/6) × $2 + (4/6) × (-$1) = $0.6667 - $0.6667 = 0.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Discrete Distributions

53. A carnival has a game of chance: a fair coin is tossed. If it lands heads you win
$1.00 and if it lands tails you lose $0.50. How much should a ticket to play this
game cost if the carnival wants to break even?

A. $0.25
B. $0.50
C. $0.75
D. $1.00

E(X) = (.5) × $1 + (.5) × (-$.50) = $0.50 - $0.25 = $0.25.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Discrete Distributions
54. Ephemeral Services Corporation (ESCO) knows that nine other companies
besides ESCO are bidding for a $900,000 government contract. Each company
has an equal chance of being awarded the contract. If ESCO has already spent
$100,000 in developing its bidding proposal, what is its expected net profit?

A. $100,000
B. $90,000
C. -$10,000
D. $0

E(X) = (1/9) × $900,000 = $100,000. ESCO only can expect to cover its sunk cost
(no profit).

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Discrete Distributions
55. The discrete random variable X is the number of students that show up for
Professor Smith's office hours on Monday afternoons. The table below shows
the probability distribution for X. What is the expected value E(X) for this
distribution?

A. 1.2
B. 1.0
C. 1.5
D. 2.0

For each X, multiply X time P(X) and sum the values.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Discrete Distributions
56. The discrete random variable X is the number of students that show up for
Professor Smith's office hours on Monday afternoons. The table below shows
the probability distribution for X. What is the probability that at least 1 student
comes to office hours on any given Monday?

A. .30
B. .40
C. .50
D. .60

P(X ≥ 1) = 1 - P(X = 0) = 1 - .40 = .60.

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Discrete Distributions
57. The discrete random variable X is the number of students that show up for
Professor Smith's office hours on Monday afternoons. The table below shows
the probability distribution for X. What is the probability that fewer than 2
students come to office hours on any given Monday?

A. .10
B. .40
C. .70
D. .90

P(X < 2) = P(X = 0) + P(X = 1) = .40 + .30 = .70.

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Discrete Distributions
58. The discrete random variable X is the number of passengers waiting at a bus
stop. The table below shows the probability distribution for X. What is the
expected value E(X) for this distribution?

A. 1.1
B. 1.3
C. 1.7
D. 1.9

For each X, multiply X time P(X) and sum the values.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Discrete Distributions
59. Given the following probability distribution, what is the expected value of the
random variable X?

A. 175
B. 150
C. 200
D. 205

For each X, multiply X time P(X) and sum the values.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Discrete Distributions
60. Which of the following characterizes a Bernoulli process?

A. A random experiment that has only two outcomes.

B. The probability of "success" varies with each trial.
C. Either outcome has the same chance of occurrence.
D. The "success" must be a desirable outcome.

Review characteristics of the Bernoulli process.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Bernoulli Distribution

61. The binomial distribution describes the number of:

A. trials to obtain the first "success" in a Bernoulli process.

B. trials to obtain n "successes" in a Bernoulli process.
C. "successes" or "failures" in a Bernoulli process.
D. "successes" in n Bernoulli trials.

Review characteristics of the binomial distribution.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution
62. Which of the following is not a requirement of a binomial distribution?

A. Constant probability of success

B. Only two possible Bernoulli outcomes
C. Fixed number of trials
D. Equally likely outcomes

Review characteristics of the binomial distribution.

AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

63. The binomial distribution is symmetrical when:

A. π = 1 and 1 - π = 0.
B. π = ¼ and 1 - π = ¾.
C. π = ½ and 1 - π = ½.
D. π = 0 and 1 - π = 1.

Review characteristics of the binomial distribution.

AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution
64. The variance will reach a maximum in a binomial distribution when:

A. π = 1 and 1 - π = 0.
B. π = ¼ and 1 - π = ¾.
C. π = ½ and 1 - π = ½.
D. π = 0 and 1 - π = 1.

Review formula for the binomial distribution standard deviation.

AACSB: Analytic
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

65. Which distribution is most strongly right-skewed?

A. Binomial with n = 50, π = .70

B. Binomial with n = 50, π = .90
C. Binomial with n = 50, π = .40
D. Binomial with n = 50, π = .10

Review characteristics of the binomial distribution.

AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution
66. A random variable is binomially distributed with n = 16 and π = .40. The
expected value and standard deviation of the variables are:

A. 2.00 and 1.24

B. 4.80 and 4.00
C. 6.40 and 1.96
D. 2.00 and 1.20

Review characteristics of the binomial distribution.

AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

67. The expected value (mean) of a binomial variable is 15. The number of trials is
20. The probability of "success" is:

A. .25
B. .50
C. .75
D. .30

Set E(X) = nπ = (20)π = 15 and solve for π.

AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution
68. If 90 percent of automobiles in Orange County have both headlights working,
what is the probability that in a sample of eight automobiles, at least seven will
have both headlights working?

A. .6174
B. .3826
C. .8131
D. .1869

Use Appendix A with n = 8 and π = .90 to find P(X ≥ 7) or else use the Excel
function =1-BINOM.DIST(6,8,.90,1) = .8131.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution
69. In Quebec, 90 percent of the population subscribes to the Roman Catholic
religion. In a random sample of eight Quebecois, find the probability that the
sample contains at least five Roman Catholics.

A. .0050
B. .0331
C. .9950
D. .9619

Use Appendix A with n = 8 and π = .90 to find P(X ≥ 5) or else use the Excel
function =1-BINOM.DIST(4,8,.90,1) = .99498.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution
70. Hardluck Harry has a batting average of .200 (i.e., a 20 percent chance of a hit
each time he's at bat). Scouts for a rival baseball club secretly observe Harry's
performance in 12 random times at bat. What is the probability that Harry will
get more than 2 hits?

A. .2055
B. .2362
C. .7946
D. .4417

Use Appendix A with n = 12 and π = .20 to find P(X ≥ 3) or else use the Excel
function =1-BINOM.DIST(2,12,.20,1) = .44165.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution
71. The probability that a visitor to an animal shelter will adopt a dog is .20. Out of
nine visits, what is the probability that at least one dog will be adopted?

A. .8658
B. .3020
C. .5639
D. .1342

Use Appendix A with n = 9 and π = .20 to find P(X ≥ 1) or else use the Excel
function =1-BINOM.DIST(0,9,.20,1) = .865778.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution
72. Based on experience, 60 percent of the women who request a pregnancy test at
a certain clinic are actually pregnant. In a random sample of 12 women, what is
the probability that at least 10 are pregnant?

A. .0639
B. .1424
C. .0196
D. .0835

Use Appendix A with n = 12 and π = .60 to find P(X ≥ 10) or else use the Excel
function =1-BINOM.DIST(9,12,.60,1) = .08344.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution
73. If 5 percent of automobiles in Oakland County have one burned-out headlight,
what is the probability that, in a sample of 10 automobiles, none will have a
burned-out headlight?

A. .5987
B. .3151
C. .0116
D. .1872

Use Appendix A with n = 10 and π = .05 find P(X = 0) or else use the Excel
function =BINOM.DIST(0,10,.05,0) = .59874.

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution
74. Jankord Jewelers permits the return of their diamond wedding rings, provided
the return occurs within two weeks. Typically, 10 percent are returned. If eight
rings are sold today, what is the probability that fewer than three will be
returned?

A. .9950
B. .9619
C. .0331
D. .1488

Use Appendix A with n = 8 and π = .10 to find P(X < 3) or else use the Excel
function =BINOM.DIST(2,8,.1,1) = .96191.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution
75. The probability that an Oxnard University student is carrying a backpack is .70. If
10 students are observed at random, what is the probability that fewer than 7
will be carrying backpacks?

A. .3504
B. .2001
C. .6177
D. .2668

Use Appendix A with n = 10 and π = .70 to find P(X < 7) or else use the Excel
function =BINOM.DIST(6,10,.7,1) = .35039.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution
76. An insurance company is issuing 16 car insurance policies. Suppose the
probability for a claim during a year is 15 percent. If the binomial probability
distribution is applicable, then the probability that there will be at least two
claims during the year is equal to:

A. .5615
B. .2775
C. .7161
D. .0388

Use Appendix A with n = 16 and π = .15 to find P(X ≥ 2) or else use the Excel
function =1-BINOM.DIST(1,16,.15,1) = .7161.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution
77. A random variable X is distributed binomially with n = 8 and π = 0.70. The
standard deviation of the variable X is approximately:

A. 0.458
B. 2.828
C. 1.680
D. 1.296

Use the formula for the binomial standard deviation.

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

78. Suppose X is binomially distributed with n = 12 and π = .20. The probability that
X will be less than or equal to 3 is:

A. .5584
B. .7946
C. .2362
D. .7638

Use Appendix A with n = 12 and π = .20 to find P(X ≤ 3) or else use the Excel
function =BINOM.DIST(3,12,.2,1) = .79457.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution
79. Which Excel function would generate a single random X value for a binomial
random variable with parameters n = 16 and π = .25?

A. =BINOM.DIST(RAND(), 16, .25, 0)

B. =BINOM.DIST(0, 16, .25, RAND())
C. =BINOM.INV(16, .25, RAND())
D. =BINOM.INV(0, 16, .25, RAND())

This is the Excel 2010 function for the inverse of a binomial.

AACSB: Technology
Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution

80. A network has three independent file servers, each with 90 percent reliability.
The probability that the network will be functioning correctly (at least one server
is working) at a given time is:

A. 99.9 percent.
B. 97.2 percent.
C. 95.9 percent.
D. 72.9 percent.

Use Appendix A with n = 3 and π = .90.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution
81. Which statement concerning the binomial distribution is correct?

A. Its PDF covers all integer values of X from 0 to n.

B. Its PDF is the same as its CDF when π = .50.
C. Its CDF shows the probability of each value of X.
D. Its CDF is skewed right when π < .50.

Review definitions of the binomial distribution. The binomial domain is X = 0, 1,

..., n.

AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-03 Define probability distribution; PDF; and CDF.
Topic: Binomial Distribution

82. Historically, 2 percent of the stray dogs in Southfield are unlicensed. On a

randomly chosen day, the Southfield city animal control officer picks up seven
stray dogs. What is the probability that fewer than two will be unlicensed?

A. .8681
B. .9921
C. .3670
D. .0076

Use Appendix A with n = 7 and π = .02.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find binomial probabilities using tables; formulas; or Excel.
Topic: Binomial Distribution
83. The domain of X in a Poisson probability distribution is discrete and can
include:

A. any real X value.

B. any integer X value.
C. any nonnegative integer X value.
D. any X value except zero.

For a Poisson random variable, X = 0, 1, 2, … (no upper limit).

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

84. On Saturday morning, calls arrive at TicketMaster at a rate of 108 calls per hour.
What is the probability of fewer than three calls in a randomly chosen minute?

A. .1607
B. .8913
C. .2678
D. .7306

Use Appendix B with λ = 108/60 = 1.8.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution
85. On average, a major earthquake (Richter scale 6.0 or above) occurs three times
a decade in a certain California county. Find the probability that at least one
major earthquake will occur within the next decade.

A. .7408
B. .1992
C. .1494
D. .9502

Use Appendix B with λ = 3.0.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution
86. On average, an IRS auditor discovers 4.7 fraudulent income tax returns per day.
On a randomly chosen day, what is the probability that she discovers fewer
than two?

A. .0518
B. .0427
C. .1005
D. .1523

Use Appendix B with λ = 4.7.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution
87. On a Sunday in April, dog bite victims arrive at Carver Memorial Hospital at a
historical rate of 0.6 victim per day. On a given Sunday in April, what is the
probability that exactly two dog bite victims will arrive?

A. .0875
B. .0902
C. .0988
D. .0919

Use Appendix B with λ = 0.6.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

88. If tubing averages 16 defects per 100 meters, what is the probability of finding
exactly 2 defects in a randomly chosen 10-meter piece of tubing?

A. .8795
B. .2674
C. .3422
D. .2584

Use Appendix B with λ = 16/10 = 1.6.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution
89. Cars are arriving at a toll booth at a rate of four per minute. What is the
probability that exactly eight cars will arrive in the next two minutes?

A. 0.0349
B. 0.1396
C. 0.9666
D. 0.0005

Use Appendix B with λ = 4.0.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

90. Arrival of cars per minute at a toll booth may be characterized by the Poisson
distribution if:

A. the arrivals are independent.

B. no more than one arrival can occur in a minute.
C. there is only one lane leading to the booth.
D. the mean arrival rate is at least 30.

Events per unit of time with no clear upper limit.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution
91. The coefficient of variation for a Poisson distribution with λ = 5 is:

A. 35.2 percent.
B. 58.9 percent.
C. 44.7 percent.
D. 31.1 percent.

Use the coefficient of variation with standard deviation equal to the square root
of the mean.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution

92. The coefficient of variation for a Poisson distribution with λ = 4 is:

A. 35.2 percent.
B. 58.9 percent.
C. 50.0 percent.
D. 26.4 percent.

The Poisson standard deviation is the square root of the mean.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-06 Find Poisson probabilities using tables; formulas; or Excel.
Topic: Poisson Distribution
93. For which binomial distribution would a Poisson approximation be
unacceptable?

A. n = 30, π = 0.02
B. n = 50, π = 0.03
C. n = 200, π = 0.10
D. n = 500, π = 0.01

We want n ≥ 20 and π ≤ .05.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-07 Use the Poisson approximation to the binomial (optional).
Topic: Poisson Distribution

94. For which binomial distribution would a Poisson approximation be acceptable?

A. n = 60, π = 0.08
B. n = 100, π = 0.15
C. n = 40, π = 0.03
D. n = 20, π = 0.20

We want n ≥ 20 and π ≤ .05 for an acceptable Poisson approximation.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-07 Use the Poisson approximation to the binomial (optional).
Topic: Poisson Distribution
95. For which binomial distribution would a Poisson approximation not be
acceptable?

A. n = 35, π = 0.07
B. n = 95, π = 0.01
C. n = 80, π = 0.02
D. n = 50, π = 0.03

We want n ≥ 20 and π ≤ .05 for an acceptable Poisson approximation.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-07 Use the Poisson approximation to the binomial (optional).
Topic: Poisson Distribution
96. The true proportion of accounts receivable with some kind of error is .02 for
Venal Enterprises. If an auditor randomly samples 200 accounts receivable, what
is the approximate Poisson probability that fewer than two will contain errors?

A. .1038
B. .0916
C. .1465
D. .0015

Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (200)(.02) = 4.0 and use

Appendix B to find P(X ≤ 1), or else use the Excel cumulative distribution
function =POISSON.DIST(1,4.0,1) = .09158.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-07 Use the Poisson approximation to the binomial (optional).
Topic: Poisson Distribution
97. The probability that a rental car will be stolen is 0.0004. If 3500 cars are rented,
what is the approximate Poisson probability that 2 or fewer will be stolen?

A. .3452
B. .2417
C. .5918
D. .8335

Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (3500)(.0004) = 1.4 and use

Appendix B to find P(X ≤ 2), or else use the Excel cumulative distribution
function =POISSON.DIST(2,1.4,1) = .8335.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-07 Use the Poisson approximation to the binomial (optional).
Topic: Poisson Distribution
98. The probability that a customer will use a stolen credit card to make a purchase
at a certain Target store is 0.003. If 400 purchases are made in a given day,
what is the approximate Poisson probability that 4 or fewer will be with stolen
cards?

A. .0053
B. .0076
C. .9923
D. .0555

Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (400)(.003) = 1.2 and use

Appendix B, or else use the Excel cumulative distribution function
=POISSON.DIST(4,.003*400,1) = .9923.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-07 Use the Poisson approximation to the binomial (optional).
Topic: Poisson Distribution
99. The probability that a ticket holder will miss a flight is .005. If 180 passengers
take the flight, what is the approximate Poisson probability that at least 2 will
miss the flight?

A. .9372
B. .0628
C. .1647
D. .2275

Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (.005)(180) = 0.9 and use

Appendix B to find P(X ≥ 2), or else use the Excel cumulative distribution
function = 1-POISSON.DIST(1,0.9,1) = .2275.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-07 Use the Poisson approximation to the binomial (optional).
Topic: Poisson Distribution
100. The probability that a certain daily flight's departure from ORD to LAX is
delayed is .02. Over six months, this flight departs 180 times. What is the
approximate Poisson probability that it will be delayed fewer than 2 times?

A. .4471
B. .3028
C. .1257
D. .1771

Since n ≥ 20 and π ≤ .05 we can set λ = nπ = (180)(.02) = 3.6 and use Appendix
B to find P(X ≤ 1) or else use the Excel cumulative distribution function
=POISSON.DIST(1,3.6,1) = .12569.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-07 Use the Poisson approximation to the binomial (optional).
Topic: Poisson Distribution
101. If X is a discrete uniform random variable ranging from 0 to 12, find P(X ≥ 10).

A. .1126
B. .1666
C. .2308
D. .2500

3 out of 13 outcomes (don't forget to count 0 as an outcome).

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-04 Know the mean and variance of a uniform discrete model.
Topic: Uniform Distribution

102. If X is a discrete uniform random variable ranging from one to eight, find P(X <
6).

A. .6250
B. .5000
C. .7500
D. .3750

We count five out of eight outcomes that meet this requirement.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-04 Know the mean and variance of a uniform discrete model.
Topic: Uniform Distribution
103. If X is a discrete uniform random variable ranging from one to eight, its mean
is:

A. 4.0
B. 4.5
C. 5.0
D. 5.5

The mean is halfway between the lower and upper limits 1 and 8.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-04 Know the mean and variance of a uniform discrete model.
Topic: Uniform Distribution

104. If X is a discrete uniform random variable ranging from 12 to 24, its mean is:

A. 18.5.
B. 16.0.
C. 18.0.
D. 19.5.

The mean is halfway between the lower and upper limits 12 and 24.

AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-04 Know the mean and variance of a uniform discrete model.
Topic: Uniform Distribution
105. At Ersatz University, the graduating class of 480 includes 96 guest students from
Latvia. A sample of 10 students is selected at random to attend a dinner with
the Board of Governors. Use the binomial model to obtain the approximate
hypergeometric probability that the sample contains at least three Latvian
students.

A. .3222
B. .1209
C. .8791
D. .6778

Since n/N < .05 we can use Appendix A with n = 10 and π = 96/480 = .20 to
find P(X ≥ 3).

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution
106. There are 90 passengers on a commuter flight from SFO to LAX, of whom 27
are traveling on business. In a random sample of five passengers, use the
binomial model to find the approximate hypergeometric probability that there
is at least one business passenger.

A. .3087
B. .1681
C. .3602
D. .8319

Since n/N < .05 we can use Appendix A with n = 5 and π = 27/90 = .30 to find
P(X ≥ 1).

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution
107. Use the binomial model to find the approximate hypergeometric probability of
at least two damaged flash drives in a sample of five taken from a shipment of
150 that contains 30 damaged flash drives.

A. 0.9421
B. 0.0579
C. 0.7373
D. 0.2627

Since n/N < .05 we can use Appendix A with n = 5 and π = 30/150 = .20 to find
P(X ≥ 2).

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution
108. On a particular day, 112 of 280 passengers on a particular DTW-LAX flight used
the e-ticket check-in kiosk to obtain boarding passes. In a random sample of
eight passengers, use the binomial model to find the approximate
hypergeometric probability that four will have used the e-ticket check-in kiosk
to obtain boarding passes.

A. .2322
B. .8263
C. .2926
D. .5613

Since n/N < .05 we can use Appendix A with n = 8 and π = 112/280 = .40 to
find P(X = 4).

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution
109. A clinic employs nine physicians. Five of the physicians are female. Four patients
arrive at once. Assuming the doctors are assigned randomly to patients, what is
the probability that all of the assigned physicians are female?

A. .0397
B. .0295
C. .0808
D. .0533

You can't use the binomial approximation because we have sampled more than
5% of the population (n/N = 4/9 = .444) so use the hypergeometric formula
with x = 4, n = 4, s = 5, N = 9 or use the Excel function
=HYPGEOM.DIST(4,4,5,9,0) = .03938.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-08 Find hypergeometric probabilities using Excel.
Topic: Hypergeometric Distribution
110. There is a .02 probability that a customer's Visa charge will be rejected at a
certain Target store because the transaction exceeds the customer's credit limit.
What is the probability that the first such rejection occurs on the third Visa
transaction?

A. .0192
B. .0025
C. .0247
D. .0200

Use the formulas for the geometric PDF (not the CDF) with π = .02 to find P(X =
3) = .02(1 - .02)3-1 = .02(.98)2 = .02(.9604) = .019208.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)
111. Ten percent of the corporate managers at Axolotl Industries majored in
humanities. What is the probability that the first humanities major is the fifth
manager you meet?

A. .0656
B. .8561
C. .5904
D. .4095

Use the formulas for the geometric PDF (not the CDF) with π = .10 to find P(X =
5) = .10(1 - .10)5-1 = .10(.90)4 = .10(.6561) = .06561.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)
112. Ten percent of the corporate managers at Axolotl Industries majored in
humanities. What is the expected number of managers to be interviewed until
finding the first one with a humanities major?

A. 15
B. 20
C. 10
D. 17

The geometric mean is 1/π = 1/(.10) = 10.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)
113. When you send out a resume, the probability of being called for an interview is
.20. What is the probability that the first interview occurs on the fourth resume
that you send out?

A. .4096
B. .1024
C. .2410
D. .0016

Use the formulas for the geometric PDF (not the CDF) with π = .20 to find P(X =
4) = .20(1 - .20)4-1 = .20(.80)3 = .20(.512) = .1024.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)
114. When you send out a resume, the probability of being called for an interview is
.20. What is the expected number of resumes you send out until you get the
first interview?

A. 5
B. 7
C. 10
D. 12

The geometric mean is 1/π = 1/(.20) = 5.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)
115. When you send out a resume, the probability of being called for an interview is
.20. What is the probability that you get your first interview within the first five
resumes that you send out?

A. .6723
B. .1024
C. .2410
D. .0016

Use the formulas for the geometric CDF (not the PDF) with π = .20 to find P(X ≤
5) = 1 -(1-.20)5 = = 1 - (.80)5 = 1 - .32678 = .67232.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)
116. There is a .02 probability that a customer's Visa charge will be rejected at a
certain Target store because the transaction exceeds the customer's credit limit.
What is the probability that the first such rejection occurs within the first 20 Visa
transactions?

A. .1362
B. .4000
C. .3324
D. .4538

Use the formulas for the geometric CDF (not the PDF) with π = .02 to find P(X ≤
20) = 1 -(1-.02)20 = = 1 - (.98)20 = 1 - .6676 = .3324.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)
117. There is a .02 probability that a customer's Visa charge will be rejected at a
certain Target store because the transaction exceeds the customer's credit limit.
What is the expected number of Visa transactions until the first one is rejected?

A. 10
B. 20
C. 50
D. 98

The geometric mean is 1/π = 1/(.02) = 50.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)

118. The geometric distribution best describes:

A. the number of successes in a sample of n trials.

B. the number of trials until the first success.
C. the number of events in a given unit of time.
D. the process of sampling without replacement.

Review the definition of geometric distribution.

AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)
119. The CDF for the geometric distribution shows:

A. the probability of success in a random experiment consisting of n

independent trials.
B. the probability that the first success will occur within a given number of trials.
C. the probability that no success will be obtained in a given Bernoulli trial.
D. the probability of more than one success in the first n trials.

Review the definition of geometric distribution.

AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)

120. If the probability of success is .25, what is the probability of obtaining the first
success within the first three trials?

A. .4218
B. .5781
C. .1406
D. .2228

Use the formulas for the geometric CDF (not the PDF) with π = .25 to find P(X ≤
3) = 1 -(1-.25)3 = 1 - (.75)3 = 1 - .421875 = .578125.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)
121. If the probability of success is .30, what is the probability of obtaining the first
success within the first five trials?

A. .0024
B. .8319
C. .1681
D. .9976

Use the formulas for the geometric CDF (not the PDF) with π = .30 to find P(X ≤
5) = 1 -(1-.30)5 = 1 - (.70)5 = 1 - .16807 = .83193.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-09 Calculate geometric probabilities (optional).
Topic: Geometric Distribution (Optional)
122. A project has three independent stages that must be completed in sequence.
The time to complete each stage is a random variable. The expected times to
complete the stages are μ1 = 23, μ2 = 11, μ3 = 17. The expected project
completion time is:

A. 51.
B. 23.
C. 40.
D. 32.

The means can be summed because the stages are independent.

AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-11 Apply rules for transformations of random variables (optional).
Topic: Transformations of Random Variables (Optional)
123. A project has 3 independent stages that must be completed in sequence. The
time to complete each stage is a random variable. The standard deviations of
the completion times for the stages are σ1 = 5, σ2 = 4, σ3 = 6. The standard
deviation of the overall project completion time is:

A. 8.77
B. 15.0
C. 14.2
D. 9.24

The variances can be summed because the stages are independent (Rule 4).
You have to square the standard deviations to get the variances σ12 = 25, σ22 =
16, σ32 = 36, then add them and take the square root of the sum. Be careful -
the standard deviations cannot be summed.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-11 Apply rules for transformations of random variables (optional).
Topic: Transformations of Random Variables (Optional)
124. A stock portfolio consists of two stocks X and Y. Their daily closing prices are
independent random variables with standard deviations σX = 2.51 and σY =
5.22. What is the standard deviation of the sum of the closing prices of these
two stocks?

A. 33.55
B. 6.48
C. 7.73
D. 5.79

The variances can be summed because the stages are independent (Rule 4).
You have to square the standard deviations to get the variances σX2 = 6.3001
and σY2 = 27.2484, then add them and take the square root of the sum. Be
careful - the standard deviations cannot be summed.

AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-11 Apply rules for transformations of random variables (optional).
Topic: Transformations of Random Variables (Optional)
125. A stock portfolio consists of two stocks X and Y. Their daily closing prices are
correlated random variables with variances σX2 = 3.51 and σY2 = 5.22, and
covariance σXY = -1.55. What is the standard deviation of the sum of the closing
prices of these two stocks?

A. 5.63
B. 7.18
C. 8.73
D. 2.68

Use the formula for the variance of correlated (nonindependent) events. We

sum the variances and covariance, and then take the square root: σX+Y = [σX2 +
σY2 + σXY ]1/2 = [3.51 + 5.22 - 1.55]1/2 = [7.18]1/2 = 2.67955.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-11 Apply rules for transformations of random variables (optional).
Topic: Transformations of Random Variables (Optional)
126. The expected value of a random variable X is 140 and the standard deviation is
14. The standard deviation of the random variable Y = 3X - 10 is:

A. 42
B. 6.48
C. 14
D. 32

Use the rule for functions of a random variable (Rule 2) to get σY = 3σX = (3)(14)
= 42. The constant -10 merely shifts the distribution and has no effect on the
standard deviation. The mean of Y is not requested.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-11 Apply rules for transformations of random variables (optional).
Topic: Transformations of Random Variables (Optional)
127. The expected value of a random variable X is 10 and the standard deviation is 2.
The standard deviation of the random variable Y = 2X - 10 is:

A. 2
B. 4
C. -10
D. -6

Use the rule for functions of a random variable (Rule 2) to get σY = 2σX = (2)(2)
= 4. The constant -10 merely shifts the distribution and has no effect on the
standard deviation. The mean of Y is not requested.

AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-11 Apply rules for transformations of random variables (optional).
Topic: Transformations of Random Variables (Optional)