1.

If 𝑃(𝐴) = 𝑃(𝐵), then 𝐴 and 𝐵 are

a- Are same events
b- May be different events
c- Must be same events
d- Are mutually exclusive

2. If 𝑃(𝐴⋂𝐵) = 0, then the two events are

a- Mutually exclusive
b- Exhaustive
c- Equally likely
d- Independent

3. If for two events 𝐴 and 𝐵, 𝑃(𝐴⋃𝐵) = 1 , then 𝐴 and 𝐵 are

a- Mutually exclusive events
b- Equally likely events
c- Exhaustive events
d- Dependent events

4. If 𝐴, B and 𝐶 are mutually exclusive and exhaustive events, then 𝑃(𝐴) + 𝑃(𝐵) +
𝑃(𝐶) 𝑒𝑞𝑢𝑎𝑙𝑠 𝑡𝑜
a- 1/3
b- 1
c- 0
d- Any value between 0 and 1

5. A bag contains 15 one-rupee coins, 25 two-rupee coins and 10 five-rupee coins. If a coin is
selected at random from the bag, then the probability of not selecting a one-rupee coin is
a- 0.30
b- 0.70
c- 0.25
d- 0.20

6. If a random variable x assumes the values 0,1 and 2 with probabilities 0.30, 0.50 and 0.20,
then its expected value is
a- 1.50
b- 3
c- 0.90
d- 1

7. If 𝑋 and 𝑌 are random variables having expected values as 4.5 and 2.5 respectively, then the
expected value of (𝑋 − 𝑌) is
a- 2
b- 7
c- 6
d- 0
8. If variance of a random variable 𝑋 is 23, then what is the variance of (2𝑥 + 10)?
a- 56
b- 33
c- 46
d- 92
9. We believe that 90% of the population of all Business Statistics I students consider statistics
to be an exciting subject. Suppose we randomly and independently selected 33 students
from the population. If the true percentage is really 90%, find the probability of observing 32
or more students who consider statistics to be an exciting subject.
a- 0.144215
b- 0.113312
c- 0.030903
d- 0.855785

10. The probability that an individual is left-handed is 0.16. In a class of 10 students, what is the
mean
and standard deviation of the number of left-handed students?
a- mean: 10; standard deviation: 1.16
b- mean: 1.6; standard deviation: 1.26
c- mean: 10; standard deviation: 1.26
d- mean: 1.6; standard deviation: 1.16

11. 40% of a class are women. The probability that a woman likes the color blue is 10%. What is
the probability that a person chosen from the class likes blue given a woman is chosen?
a- 4
b- 0.4
c- 0.1
d- 0.25

12. The number of traffic accidents that occur on a particular stretch of road during a month
follows a Poisson distribution with a mean of 7.4. Find the probability that fewer than three
accidents will occur next month on this stretch of road.
a- 0.021871
b- 0.978129
c- 0.063153
d- 0.936847

13. Suppose a Poisson probability distribution with 𝜆 = 5.1 provides a good approximation of
the distribution of a random variable 𝑥. Find 𝜎 for 𝑥
a- 2.6
b- 5.1
c- √5.1
d- 26.01
14. Suppose that a quiz consists of 20 True-False questions. A student hasn't studied for the
exam and will just randomly guesses at all answers (with True and False equally likely). How
would you find the probability that the student will get 8 or fewer answers correct?
A. Find the probability that X=8 in a binomial distribution with n = 20 and p=0.5.
B. Find the area between 0 and 8 in a uniform distribution that goes from 0 to 20.
C. Find the probability that X=8 for a normal distribution with mean of 10 and standard
deviation of 5 .
D. Find the cumulative probability for 8 in a binomial distribution with n = 20 and p = 0.5.

15. A medical treatment has a success rate of 0.8. Two patients will be treated with this
treatment. Assuming the results are independent for the two patients, what is the probability
that neither one of them will be successfully cured?
a- 0.5
b- 0.36
c- 0.2
d- 0.04

16. For the standard normal probability distribution, the area to the left of the mean is
a- greater than 0.5
b- -0.5
c- One
d- 0.5
e- none of the above

17. Assume z is the standard normal random variable. If the area between zero and 𝑧 is 0.4115,
then the 𝑧 value may be
a- 2.70
b- 1.35
c- 1.00
d- 0.2077
e- none of the above

18. The travel time for a businesswoman traveling between Dallas and Fort Worth is uniformly
distributed between 40 and 90 minutes. The probability that she will finish her trip in 80
minutes or less is
a- 0.02
b- 0.2
c- 0.8
d- 1.0
e- none of the above

Question 12.

19. On the day before an exam in an online class, students email questions to the professor at a
rate of 1 every 20 minutes, exponentially distributed. Determine the probability that more
than 1 hour elapses between email messages.
 a- 37%
b- 95%
c- 5%
d- 63%
20. For an exponential distribution with the parameter lambda equal to 10 per minute, what is
the mean of the exponential distribution?
a- 0.17
b- 0
c- cannot be determined from the given information
d- 0.1

21. The weekly salaries of a group of employees are normally distributed with a mean of
$200 and a standard deviation of $40. What is the probability that the salary of an
employee taken at random will be $250 or more?
a- 0.2354
b- 0.0940
c- 0.3524
d- 0.1056

22. What proportion of salaries are at least $180 but no more that $230?
a- 0.5263
b- 0.4649
c- 0.6532
d- 0.3244

23. A manufacturer produces rolls of wallpaper. A flaw occurs when the pattern is not
consistent. A 20 metre sample from each role is inspected. It is believed that the
number of flaws per sample follows a Poisson distribution with a mean of one flaw per
20 metre sample. What is the probability that at least two flaws will appear in a 20
metre sample?
a. 0.0127
b. 0.2642
c. 0.2897
d. 0.0256

24. A study shows that at the weekend the average number of cars queuing at a service
station petrol pump in a garage is four. What is the probability that during the
weekend four or more cars were waiting?
a. 0.6954
b. 0.2344
 c. 0.1465
d. 0.5665

A survey of 120 business executives revealed the following results:

• 80 Read the Financial Times

• 60 read the Economist
• 40 read both the Financial Times and the Economist

25. If an executive is picked at random, find the probability that he or she reads both the
Financial Times and the Economist.
a. 0.0666
b. 0.5
c. 0.8334
d. 0.333

26. If an executive is picked at random find the probability that he or she reads either the
Financial Times or the Economist.
a. 1.000
b. 0.500
c. 0.166
d. 0.833

27. If an executive is selected at random what is the probability that they read either the
Financial Times or the Economist but not both
a.
0.333
b. 0.166
c. 0.833
d. 0.500

28. A workforce consists of seven workers. How many different three worker teams is it
possible to select?
a. 70
b. 125
c. 210
d. 35
29. Two prize-winners are to be selected from ten economics students. In how many
different ways could the prize-winners be selected?
a. 36
b. 90
c. 24
d. 45

30. If the two prizes in the previous question are designated first and second prize, in how
many different ways could they be awarded?
a. 36
b. 45
c. 90
d. 24
31. In the lottery seven balls are selected out of forty-nine. So far 572 draws have been
made (correct at the time of writing). How many times would you expect a particular
number to have been drawn?
a. 97
b. 49
c. 12
d. 82

32. __________________ is referred to as the rectangular distribution.

a. binomial distribution
b. uniform distribution
c. exponential distribution
d. normal distribution

33. Mean, median and mode are the ____________values for a normal distribution.
a. opposite
b. same
c. inverse
d. different

34. When numbers of trials are greater than 20, np ≥ 5 and n(1-p) ≥ 5 ,the normal
probability distribution can be used as an approximation of _________________.
a. binomial probabilities
b. Poisson probabilities
c. hypergeometric probabilities
d. exponential probabilities
35. ………………………is a continuous probability distribution and explains the
probability distribution of the time between random occurrences.
a. Hypergeometric probability distribution
b. Binomial probability distribution
c. Poisson probability distribution
d. Exponential probability distribution

36. Consider a random variable with exponential distribution with λ=1. Compute the
probability for P (X>3).
a. e-3
b. e-1
c. e-2
d. e-4

37. The probability of success and failures in hypergeometric distribution is not fixed.
a. True
b. False

38. The trials conducted in Hypergeometric distribution are done without replacement of
the drawn samples.
a. True
b. False

39. A manager receives emails that consists of 18% spam of those emails. The spam filter
is 93% reliable i.e., 93% of the mails it marks as spam are actually a spam and 93% of
spam mails are correctly labelled as spam. If a mail marked spam by her spam filter,
determine the probability that it is really spam.
a. 50%
b. 84%
c. 39%
d. 63%

40. It is suitable to use Binomial Distribution only for ___________

a. Large values of ‘n’
b. Fractional values of ‘n’
c. Small values of ‘n’
d. Any value of ‘n’