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Continuous Probability Distributions: True/False

This document contains a test bank of questions about continuous probability distributions and the normal distribution. It includes 32 true/false questions and 42 multiple choice or calculation questions testing concepts like areas under the normal curve, z-scores, means, standard deviations, and probabilities for different parts of the normal distribution. The questions cover topics like properties of the normal distribution, areas under the curve for different z-values, and calculating probabilities and numbers of observations given distributions with known means and standard deviations.

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Mahmoud Ayoub Goda
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112 views5 pages

Continuous Probability Distributions: True/False

This document contains a test bank of questions about continuous probability distributions and the normal distribution. It includes 32 true/false questions and 42 multiple choice or calculation questions testing concepts like areas under the normal curve, z-scores, means, standard deviations, and probabilities for different parts of the normal distribution. The questions cover topics like properties of the normal distribution, areas under the curve for different z-values, and calculating probabilities and numbers of observations given distributions with known means and standard deviations.

Uploaded by

Mahmoud Ayoub Goda
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Chapter 7

Continuous Probability Distributions


True/False
1. Areas within a continuous probability distribution represent probabilities.
2. The total area within any continuous probability distribution is equal to 1.00
3. Some normal probability distributions have equal arithmetic means, but their standard deviations may
be different.

4. Some normal probability distributions have different arithmetic means and different standard
deviations.

5. For a normal probability distribution, about 95 percent of the area under normal curve is within plus
and minus two standard deviations of the mean and practically all (99.73 percent) of the area under the
normal curve is within three standard deviations of the mean.
Answer: 5. True Difficulty: Easy Goal: 6 AACSB: AS
6. The area under the normal curve within plus and minus one standard deviation of the mean is about
68.26%.
7. The total area under the normal curve is 100%.
8. A z-score is the distance between a selected value (X) and the population mean (  ) divided by the
population standard deviation (  ).
9. In terms of a formula the standardized value of z is found by z = (X –  )/  .

10. The mean (  ) divides the normal curve into two identical halves.

11. The number of different normal distributions is unlimited.


12. The mean of a normal distribution is represented by  .
13. The standard normal distribution is a special normal distribution with a mean of 0 and a standard
deviation of 1.

14. A computed z for X values to the right of the mean is negative.


15. A computed z for X values to the left of the mean is positive.
16. The number of different standard normal distributions is unlimited.

Multiple Choice
17. Which of the following is NOT true regarding the normal distribution?
A) Mean, median and mode are all equal
B) It has a single peak
C) It is symmetrical
D) The points of the curve meet the X-axis at z = –3 and z = 3

104 Test Bank, Chapter 7


18. For the normal distribution, the mean plus and minus 1.96 standard deviations will include about
what percent of the observations?
A) 50%
B) 99.7%
C) 95%
D) 68%
19. For a standard normal distribution, what is the probability that z is greater than 1.75?
A) 0.0401
B) 0.0459
C) 0.4599
D) 0.9599
20. What is the area under the normal curve between z = 0.0 and z = 1.79?
A) 0.4633
B) 0.0367
C) 0.9599
D) 0.0401
21. What is the area under the normal curve between z = –1.0 and z = –2.0?
A) 0.0228
B) 0.3413
C) 0.1359
D) 0.4772
22. What is the area under the normal curve between z = 0.0 and z = 2.0?
A) 1.0000
B) 0.7408
C) 0.1359
D) 0.4772
23. The mean amount spent by a family of four on food per month is $500 with a standard deviation of
$75. Assuming that the food costs are normally distributed, what is the probability that a family spends
less than $410 per month?
A) 0.2158
B) 0.8750
C) 0.0362
D) 0.1151
24. What is the proportion of the total area under the normal curve within plus and minus two standard
deviations of the mean?
A) 68%
B) 99.7%
C) 34%
D) 95%
25. The mean score of a college entrance test is 500; the standard deviation is 75. The scores are
normally distributed. What percent of the students scored below 320?
A) About 50.82%
B) About 34.13%
C) About 7.86%
D) About 0.82%

Statistical Techniques in Business & Economics, Lind/Marchal/Wathen, 13/e 105


26. The mean of a normally distributed group of weekly incomes of a large group of executives is $1,000
and the standard deviation is $100. What is the z-score for an income of $1,100?
A) 1.00
B) 2.00
C) 1.683
D) -0.90
Answer: 26. A Difficulty: Medium Goal: 5 AACSB: AS

27. A new extended-life light bulb has an average service life of 750 hours, with a standard deviation of
50 hours. If the service life of these light bulbs approximates a normal distribution, about what percent of
the distribution will be between 600 hours and 900 hours?
A) 95%
B) 68%
C) 34%
D) 99.7%
Answer: 27. D Difficulty: Medium Goal: 6
28. The mean of a normal distribution is 400 pounds. The standard deviation is 10 pounds. What is the
area between 415 pounds and the mean of 400 pounds?
A) 0.5000
B) 0.1932
C) 0.4332
D) 0.3413
Answer: 28. C Difficulty: Medium Goal: 6
29. The distribution of the annual incomes of a group of middle management employees approximated a
normal distribution with a mean of $37,200 and a standard deviation of $800. About 68 percent of the
incomes lie between what two incomes?
A) $30,000 and $40,000
B) $36,400 and $38,000
C) $34,800 and $39,600
D) $35,600 and $38,800
Answer: 29. B Difficulty: Medium Goal: 6
30. The total area of a normal probability distribution is
A) between –3.0 and 3.0
B) 1.00
C) dependent on a value of 'z'.
D) approximated by the binomial distribution.
Answer: 30. B Difficulty: Easy Goal: 4
31. An area of a normal probability distribution represents
A) a permutation
B) a combination
C) a likelihood
D) a shaded area
Answer: 31. C Difficulty: Easy Goal: 6
32. The weight of cans of fruit is normally distributed with a mean of 1,000 grams and a standard
deviation of 50 grams. What percent of the cans weigh 860 grams or less?
A) 0.0100
B) 0.8400

106 Test Bank, Chapter 7


C) 0.0026
D) 0.0001
33. What is the distribution with a mean of 0 and a standard deviation of 1 called?
A) Frequency distribution
B) z-score
C) Standard normal distribution
D) Binomial probability distribution

Use the following to answer questions 34-39:


A sample of 500 evening students revealed that their annual incomes from employment in industry during
the day were normally distributed with a mean income of $30,000 and a standard deviation of $3,000.
34. How many students earned more than $30,000? _______
35. How many students earned between $27,000 and $33,000? ______

36. How many students earned between $24,000 and $30,000? ______
37. How many students earned between $20,000 and $40,000? ______
38. How many students earned less than $22,500? _______
39. How many students earned more than $36,000? _______

Multiple Choices
Use the following to answer questions 40-42:
The average score of 100 students taking a statistics final was 70 with a standard deviation of 7.
40. Assuming a normal distribution, approximately how many scored 90 or higher?
A) 0.4979
B) 0.0021
C) 0.9979
D) 2.86
41. Assuming a normal distribution, approximately how many scored less than 60?
A) 0.2271
B) 0.3729
C) 0.8929
D) – 1.14
E) None of the above
42. Assuming a normal distribution, approximately how many scored greater than 65?
A) 0.2611
B) 0.2389
C) 0.7611
D) –0.714

Statistical Techniques in Business & Economics, Lind/Marchal/Wathen, 13/e 107


Answer
1. True 2. True 3. True 4. True 6. True 7. True 8. True
9. True 10. True 11. True 12. False 13. True 14. False 15. False
16. False
17. D 18. C 19. A 20. A 21. C 22. D 23. D
24. D 25. D 32. C 33. C 34. 250 35. 341 36. 239
37. 500 38. 3 39. 11 40. B 41. E 42. C

108 Test Bank, Chapter 7

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