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 discrete random variable.

 
AACSB: Analytical Thinking
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Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-01 Define a discrete random variable and its probability distribution.
Topic: Discrete Probability Distributions
 
2. A discrete random variable has a countable number of distinct values. 
 
TRUE

Review definition of discrete random variable. But "countable" does not necessarily imply that we know the
upper limit (e.g., number of computer virus attacks per year).

 
AACSB: Analytical Thinking
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Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-01 Define a discrete random variable and its probability distribution.
Topic: Discrete Probability 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. The mean is a weighted average.

 
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Difficulty: 1 Easy
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Expected Value and Variance
 
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 (point probability) and CDF (cumulative sum of probabilities).

 
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Difficulty: 1 Easy
Learning Objective: 06-01 Define a discrete random variable and its probability distribution.
Topic: Discrete Probability Distributions
 
5. A random variable may be discrete or continuous, but not both. 
 
TRUE

Review definition of discrete and continuous. Discrete implies enumerable.

 
AACSB: Analytical Thinking
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Difficulty: 2 Medium
Learning Objective: 06-01 Define a discrete random variable and its probability distribution.
Topic: Discrete Probability 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 and we have no upper limit (Poisson distribution would be better).

 
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Difficulty: 2 Medium
Learning Objective: 06-05 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 dice follows a triangular distribution, as was shown in Chapter 5.

 
AACSB: Analytical Thinking
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Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 06-01 Define a discrete random variable and its probability distribution.
Topic: Discrete Probability Distributions
 
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.

 
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Difficulty: 2 Medium
Learning Objective: 06-04 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.

 
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Difficulty: 2 Medium
Learning Objective: 06-04 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: Analytical Thinking
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Difficulty: 1 Easy
Learning Objective: 06-05 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: Analytical Thinking
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Difficulty: 2 Medium
Learning Objective: 06-05 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: Analytical Thinking
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Difficulty: 2 Medium
Learning Objective: 06-05 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 a binomial when n is large and π is small.

 
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Learning Objective: 06-06 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).

 
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Difficulty: 2 Medium
Learning Objective: 06-07 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

In the hypergeometric, π is not constant, because we are sampling without replacement.

 
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Learning Objective: 06-07 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.

 
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Difficulty: 1 Easy
Learning Objective: 06-07 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

It is safe to use the binomial-hypergeometric approximation if n/N < .05.

 
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Learning Objective: 06-08 Use the binomial approximation to the hypergeometric (optional).
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.

 
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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 (sampling without replacement).

 
AACSB: Analytical Thinking
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Difficulty: 2 Medium
Learning Objective: 06-07 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 suggests a Poisson event.

 
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Difficulty: 2 Medium
Learning Objective: 06-05 Find Poisson probabilities using tables, formulas, or Excel.
Topic: Poisson Distribution
 
21. The gender (M, F) of a randomly chosen unborn child is a Bernoulli event. 
 
TRUE

Bernoulli events have two outcomes (0 or 1).

 
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Learning Objective: 06-04 Find binomial probabilities using tables, formulas, or Excel.
Topic: Binomial Distribution
 
22. The Poisson distribution has only one parameter. 
 
TRUE

The one Poisson parameter is its mean.

 
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Learning Objective: 06-05 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

Yes, because the mean and variance of a Poisson are the same.

 
AACSB: Analytical Thinking
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Learning Objective: 06-05 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: Analytical Thinking
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Difficulty: 1 Easy
Learning Objective: 06-05 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

No, the probability of success need not be .50.

 
AACSB: Analytical Thinking
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Difficulty: 2 Medium
Learning Objective: 06-04 Find binomial probabilities using tables, formulas, or Excel.
Topic: Binomial Distribution
 
26. The expected value of a random variable is its mean. 
 
TRUE

The mean is another name for expected value.

 
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Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Expected Value and Variance
 
 

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: Analytical Thinking
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Difficulty: 2 Medium
Learning Objective: 06-01 Define a discrete random variable and its probability distribution.
Topic: Discrete Probability 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.

 
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Difficulty: 1 Easy
Learning Objective: 06-04 Find binomial probabilities using tables, formulas, or Excel.
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.

For example, the Sunday vehicle count on a freeway is a discrete (but large) number.

 
AACSB: Analytical Thinking
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Difficulty: 2 Medium
Learning Objective: 06-01 Define a discrete random variable and its probability distribution.
Topic: Discrete Probability 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.

 
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Difficulty: 1 Easy
Learning Objective: 06-01 Define a discrete random variable and its probability distribution.
Topic: Discrete Probability Distributions
 
31. Which is 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: Analytical Thinking
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Difficulty: 1 Easy
Learning Objective: 06-01 Define a discrete random variable and its probability distribution.
Topic: Discrete Probability 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.

A hypergeometric distribution is symmetric only if s/N = .50.

 
AACSB: Analytical Thinking
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Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 06-07 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: Analytical Thinking
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Difficulty: 2 Medium
Learning Objective: 06-09 Calculate geometric probabilities (optional).
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.

 
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Difficulty: 2 Medium
Learning Objective: 06-04 Find binomial probabilities using tables, formulas, or Excel.
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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find Poisson probabilities using tables, formulas, or Excel.
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: Analytical Thinking
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Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-09 Calculate geometric probabilities (optional).
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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find Poisson probabilities using tables, formulas, or Excel.
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: Analytical Thinking
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Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find Poisson probabilities using tables, formulas, or Excel.
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: Analytical Thinking
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Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-07 Find hypergeometric probabilities using Excel.
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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find Poisson probabilities using tables, formulas, or Excel.
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: Analytical Thinking
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Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find Poisson probabilities using tables, formulas, or Excel.
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: Analytical Thinking
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Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-07 Find hypergeometric probabilities using Excel.
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: Analytical Thinking
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Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-05 Find Poisson probabilities using tables, formulas, or Excel.
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: Analytical Thinking
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Blooms: Apply
 Difficulty: 2 Medium
Learning Objective: 06-07 Find hypergeometric probabilities using Excel.
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: Analytical Thinking
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Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-09 Calculate geometric probabilities (optional).
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 would be Poisson.

 
AACSB: Analytical Thinking
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Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 Find Poisson probabilities using tables, formulas, or Excel.
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.

 
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Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-09 Calculate geometric probabilities (optional).
 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: Analytical Thinking
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Difficulty: 2 Medium
Learning Objective: 06-07 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: Analytical Thinking
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Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-05 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.

 
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Difficulty: 3 Hard
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Expected Value and Variance
 
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. Calculate 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: Analytical Thinking
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Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Expected Value and Variance
 
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. Calculate 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: Analytical Thinking
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Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Expected Value and Variance
 
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: Analytical Thinking
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Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Expected Value and Variance
 
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).

 
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Difficulty: 3 Hard
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Expected Value and Variance
 
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: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Expected Value and Variance
 
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: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-01 Define a discrete random variable and its probability distribution.
Topic: Discrete Probability 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: Analytical Thinking
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-01 Define a discrete random variable and its probability distribution.
Topic: Discrete Probability 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 times P(X) and sum the values.

 
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Expected Value and Variance
 
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 times P(X) and sum the values.

 
AACSB: Analytical Thinking
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-02 Solve problems using expected value and variance.
Topic: Expected Value and Variance
 
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 (binary) process.

 
AACSB: Analytical Thinking
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Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 06-04 Find binomial probabilities using tables, formulas, or Excel.
Topic: Binomial 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 (repeated binary trials).

 
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-04 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 (repeated binary trials).

 
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-04 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.

The binomial distribution is skewed unless π = .50.

 
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 06-04 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 3 Hard
Learning Objective: 06-04 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

The binomial is right-skewed when π < .50.

 
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 06-04 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 formulas for the binomial distribution mean and standard deviation.

 
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-04 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-04 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-04 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-04 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-04 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
 Difficulty: 2 Medium
Learning Objective: 06-04 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-04 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-04 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-04 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-04 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: Analytical Thinking
Accessibility: Keyboard Navigation
 Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-04 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 06-04 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-04 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
Accessibility: Keyboard Navigation
 Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 06-04 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-04 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 06-04 Find binomial probabilities using tables, formulas, or Excel.
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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
 Difficulty: 2 Medium
Learning Objective: 06-04 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-05 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-05 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-05 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-05 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-05 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-05 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-06 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-06 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-06 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-06 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-06 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-06 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-06 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-06 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-03 Define and apply the 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-03 Define and apply the 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-03 Define and apply the 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-03 Define and apply the 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-08 Use the binomial approximation to the hypergeometric (optional).
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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-07 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-08 Use the binomial approximation to the hypergeometric (optional).
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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
 Learning Objective: 06-08 Use the binomial approximation to the hypergeometric (optional).
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 we 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-08 Use the binomial approximation to the hypergeometric (optional).
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: Analytical Thinking
Accessibility: Keyboard Navigation
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. If you start interviewing
Axolotl managers, what is the probability that the first humanities major is the fifth manager that you
interview? 
 

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: Analytical Thinking
Accessibility: Keyboard Navigation
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: Analytical Thinking
Accessibility: Keyboard Navigation
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: Analytical Thinking
Accessibility: Keyboard Navigation
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: Analytical Thinking
Accessibility: Keyboard Navigation
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: Analytical Thinking
Accessibility: Keyboard Navigation
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: Analytical Thinking
 Accessibility: Keyboard Navigation
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: Analytical Thinking
Accessibility: Keyboard Navigation
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: Analytical Thinking
Accessibility: Keyboard Navigation
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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
 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: Analytical Thinking
Accessibility: Keyboard Navigation
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: Analytical Thinking
Accessibility: Keyboard Navigation
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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 06-10 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-10 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 06-10 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-10 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-10 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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 06-10 Apply rules for transformations of random variables (optional).
Topic: Transformations of Random Variables (Optional)