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TEST BANK OF BASIC

STATISTICS FOR BUSINESS


AND ECONOMICS 5TH
EDITON BY LIND MARCHAL
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c6
Student: ___________________________________________________________________________
1. i. The Empirical Rule of probability can be applied to the uniform probability
distribution.
ii. Areas within a continuous probability distribution represent probabilities.
iii. The total area within a continuous probability distribution is equal to 1.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).

D. (ii) and (iii) are correct statements but not (i).


E. (i), (ii), and (iii) are all false statements.

2. i. The total area within any continuous probability distribution is equal to 1.00.
ii. For any continuous probability distribution, the probability, P(x), of any value of
the random variable, X, can be computed.
iii. For any discrete probability distribution, the probability, P(x), of any value of the
random variable, X, can be computed.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

3. i. Areas within a continuous probability distribution represent probabilities.


ii. The total area within any continuous probability distribution is equal to 1.00.
iii. For any discrete probability distribution, the probability, P(x), of any value of the
random variable, X, can be computed.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

4. i. For any uniform probability distribution, the mean and standard deviation can
be computed by knowing the maximum and minimum values of the random
variable.
ii. In a uniform probability distribution, P(x) is constant between the distribution's
minimum and maximum values.
iii. The uniform probability distribution's shape is a rectangle.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).

C. (i) and (iii) are correct statements but not (ii).


D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

5. i. Areas within a continuous probability distribution represent probabilities.


ii. The Empirical Rule of probability can be applied to the uniform probability
distribution.
iii. The total area within a continuous probability distribution is equal to 100.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

6. i. The uniform probability distribution is symmetric about the mean and median.
ii. The uniform probability distribution's shape is a rectangle.
iii. In a uniform probability distribution, P(x) is constant between the distribution's
minimum and maximum values.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

7. i. The uniform probability distribution's standard deviation is proportional to the


distribution's range.
ii. The uniform probability distribution is symmetric about the mode.
iii. For a uniform probability distribution, the probability of any event is equal to 1/
(b-a).
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).

C. (i) and (iii) are correct statements but not (ii).


D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

8. i. The uniform probability distribution's shape is a rectangle.


ii. The uniform probability distribution is symmetric about the mode.
iii. In a uniform probability distribution, P(x) is constant between the distribution's
minimum and maximum values.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and, (iii) are correct statements but not (ii).
D. (ii) and, (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

9. i. In a uniform probability distribution, P(x) is constant between the distribution's


minimum and maximum values.
ii. For a uniform probability distribution, the probability of any event is equal to 1/(ba).
iii. The uniform probability distribution is symmetric about the mode.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

10. The shape of any uniform probability distribution is


A. Negatively skewed
B. Positively skewed
C. Rectangular
D. Bell shaped

11. The mean of any uniform probability distribution is


A. (b - a)/2
B. (a + b)/2
C.
D. n

12. The standard deviation of any uniform probability distribution is


A. (b - a)/2
B. n(1 - )
C.
D.

13. A financial advising company has determined that the price-to-earnings ratios
for 20 randomly selected publicly traded companies range between 0.9 and 2.9.
Given that the price-to-earnings ratios are uniformly distributed, what percent of
price-to-earnings ratios are between 1.90 and 2.48?
A. 19%
B. 20%
C. 26%
D. 29%

14. A major credit card company has determined that customers charge between
$100 and $1,100 per month. Given that the average monthly amount charged is
uniformly distributed, what is the standard deviation of the monthly amount
charged?
A. 298.67
B. 275.57
C. 267.88
D. 288.67

15. A major credit card company has determined that customers charge between
$100 and $1,100 per month. Given that the average monthly amount charged is

uniformly distributed, what percent of monthly charges are between $600 and
$889?
A. 28.9%
B. 20.8%
C. 26.2%
D. 29.3%

16. A major credit card company has determined that customers charge between
$100 and $1,100 per month. Given that the average monthly amount charged is
uniformly distributed, what is the probability that a person charges less than $200
per month?
A. 5%
B. 10%
C. 15%
D. 20%

17. A financial advising company has determined that the price-to-earnings ratios
for 20 randomly selected publicly traded companies range between 0.9 and 2.9.
Given that the price-to-earnings ratios are uniformly distributed, what is the
average price-to-earnings ratio?
A. 0.9
B. 1.9
C. 2.9
D. 3.8

18. The upper and lower limits of a uniform probability distribution are
A. positive and negative infinity.
B. plus and minus three standard deviations.
C. 0 and 1.
D. the maximum and minimum values of the random variable.

19. What is an important similarity between the uniform and normal probability
distributions?

A. The mean, median and mode are all equal.


B. The mean and median are equal.
C. They are negatively skewed.
D. About 68% of all observations are within one standard deviation of the mean.

20. i. Asymptotic, means that the normal curve gets closer and closer to the X-axis
but never actually touches it.
ii. When referring to the normal probability function, there is not just one of them;
there is a "family" of them.
iii. Some normal probability distributions have equal arithmetic means, but their
standard deviations may be different.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

21. i. The mean of a normal distribution is represented by .


ii. When referring to the normal probability function, there is not just one of them;
there is a "family" of them.
iii. Some normal probability distributions have equal arithmetic means, but their
standard deviations may be different.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

22. i. The normal curve falls off smoothly in either direction from the central value.
Since it is asymptotic, the curve gets closer and closer to the X-axis, but never
actually touches it.
ii. The mean () divides the normal curve into two identical halves.

iii. The number of different normal distributions is unlimited.


A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

23. i. Asymptotic, means that the normal curve gets closer and closer to the X-axis
but never actually touches it.
ii. When referring to the normal probability function, there is not just one of them;
there is a "family" of them.
iii. Some normal probability distributions have different arithmetic means and
different standard deviations.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

24. Which of the following is true in a normal distribution?


A. Mean equals the mode and the median
B. Mode equals the median
C. Mean divides the distribution into two equal parts
D. Mean equals the mode and the median and Mean divides the distribution into
two equal parts

25. Which of the following is NOT a characteristic of the normal probability


distribution?
A. Positively-skewed
B. Bell-shaped
C. Symmetrical

D. Asymptotic

26. A random variable from an experiment where outcomes are normally distributed
can have
A. any value between - and +
B. only a few discrete values
C. a mean of 0 and a standard deviation of 1
D. no values

27. 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.

28. 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

29. Two normal distributions are compared. One has a mean of 10 and a standard
deviation of 10. The second normal distribution has a mean of 10 and a standard
deviation of 2. Which of the following is true?
A. The locations of the distributions are different.
B. The distributions are from two different families.
C. The dispersions of the distributions are different.
D. The dispersions of the distributions are the same.

30. i. A z-score is the distance between a selected value (X) and the population
mean () divided by the population standard deviation ( ).

ii. The standard normal distribution is a special normal distribution with a mean of 0
and a standard deviation of 1.
iii. A computed z for X values to the right of the mean is negative.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (i), (ii), and (iii) are all false statements.

31. i. In terms of a formula the standardized value of z is found by z = (X - )/ .


ii. The standard normal distribution is a special normal distribution with a mean of 0
and a standard deviation of 1.
iii. A computed z for X values to the right of the mean is positive.
A. (i), (ii), and (iii) are all correct statements
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (i), (ii), and (iii) are all false statements.

32. i. In terms of a formula the standardized value of z is found by z = (X - )/ .


ii. The standard normal distribution is a normal distribution with a mean of 0 and a
standard deviation of less than 10.
iii. A computed z for X values to the left of the mean is positive.
A. (i), (ii), and (iii) are all correct statements
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (i), (ii), and (iii) are all false statements.

33. 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

34. Tables of normal distribution probabilities are found in many statistics books.
These probabilities are calculated from a normal distribution with
A. a mean of 1 and a standard deviation of 1.
B. a mean of 100 and a standard deviation of 15.
C. a mean of 0 and a standard deviation of 15.
D. a mean of 0 and a standard deviation of 1.

35. The standard normal probability distribution is one which has:


A. a mean of 1 and any standard deviation.
B. any mean and a standard deviation of 1.
C. a mean of 0 and any standard deviation.
D. a mean of 0 and a standard deviation of 1.

36. 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

37. Two competitive brothers, who work in two different industries, were comparing
their salaries. Because there is a difference of 4 years in their respective work
experience, they decided to compare, not their actual salaries, but to compare their
salaries against their company averages to see who is doing better. The following
gives the brothers salaries, companies mean, and standard deviation for each
company.

What is the z-score of Andy's salary?


A. - 1.29
B. 1.29
C. - 1.89
D. 1.89

38. Two competitive brothers, who work in two different industries, were comparing
their salaries. Because there is a difference of 4 years in their respective work
experience, they decided to compare, not their actual salaries, but to compare their
salaries against their company averages to see who is doing better. The following
gives the brothers salaries, companies mean, and standard deviation for each
company.

What is the z-score of Tom's salary?


A. -1.29
B. 1.29
C. -1.89
D. 1.89

39. Two competitive brothers, who work in two different industries, were comparing
their salaries. Because there is a difference of 4 years in their respective work
experience, they decided to compare, not their actual salaries, but to compare their
salaries against their company averages to see who is doing better. The following
gives the brothers salaries, companies mean, and standard deviation for each
company.

Which brother earns a higher salary compared to the rest of their colleagues?
A. Tom
B. Andy
C. They both compare the same when measured against their colleagues
D. Unable to determine from the information given

40. Two business major students, in two different sections of economics, were
comparing test scores. The following gives the students' scores, class mean, and
standard deviation for each section.
Which student scored better compared to the rest of their section?

A. The student in section A.


B. The student in section B.
C. Both students scored the same.
D. We are unable to determine who did better from the information given.

41. i. 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.
ii. The total area under the normal curve is 100%.
iii. The mean of a normal probability distribution is 500 and the standard deviation is
10.
About 95 percent of the observations lie between 480 and 520.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (i), (ii), and (iii) are all false statements.

42. i. 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.
ii. The total area under the normal curve is 1.
iii. The mean of a normal probability distribution is 500 and the standard deviation is
10. About 68 percent of the observations lie between 480 and 520.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (i), (ii), and (iii) are all false statements.

43. i. Disaster Airlines determined that the mean number of passengers per flight is
152 with a standard deviation of ten passengers. Practically all flights have between
142 and 162 passengers.
ii. The total area under the normal curve is less than 1.
iii. The mean of a normal probability distribution is 500 and the standard deviation is
10.
About 68 percent of the observations lie between 480 and 520.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (i), (ii), and (iii) are all false statements.

44. 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%

45. 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

46. 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

47. 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%

48. 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%

49. An accelerated life test on a large number of type-D alkaline batteries revealed
that the mean life for a particular use before they failed is 19.0 hours. The
distribution of the lives approximated a normal distribution. The standard deviation
of the distribution was 1.2 hours. About 95.44 percent of the batteries failed
between what two values?

A. 8.9 and 18.9


B. 12.2 and 14.2
C. 14.1 and 22.1
D. 16.6 and 21.4

50. The mean of a normal distribution is 400 kg. The standard deviation is 10 kg.
What is the area between 415 kg and the mean of 400 kg?
A. 0.5000
B. 0.1932
C. 0.4332
D. 0.3413

51. 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

52. The seasonal output of a new experimental strain of pepper plants was carefully
weighed. The mean weight per plant is 15.0 pounds, and the standard deviation of
the normally distributed weights is 1.75 pounds. Of the 200 plants in the
experiment, how many produced peppers weighing between 13 and 16 pounds?
A. 100
B. 118
C. 197
D. 53

53. A national manufacturer of unattached garages discovered that the distribution


of the lengths of time it takes two construction workers to erect the Red Barn model
is approximately normally distributed with a mean of 32 hours and a standard

deviation of 2 hours. What percent of the garages take between 32 and 34 hours to
erect?
A. 16.29%
B. 76.71%
C. 3.14%
D. 34.13%

54. The annual commissions per salesperson employed by a manufacturer of light


machinery averaged $40,000 with a standard deviation of $5,000. What percent of
the sales persons earn between $32,000 and $42,000?
A. 60.06%
B. 39.94%
C. 34.13%
D. 81.66%

55. The mean of a normal probability distribution is 500 and the standard deviation
is 10. About 95 percent of the observations lie between what two values?
A. 475 and 525
B. 480 and 520
C. 400 and 600
D. 350 and 650

56. The employees of Cartwright Manufacturing are awarded efficiency ratings. The
distribution of the ratings approximates a normal distribution. The mean is 400, the
standard deviation 50. What is the area under the normal curve between 400 and
482?
A. 0.5000
B. 0.4495
C. 0.3413
D. 0.4750

57. A sample of 500 evening students revealed that their annual incomes were
normally distributed with a mean income of $50,000 and a standard deviation of
$4,000. How many students earned between $47,000 and $53,000?
A. 137
B. 273
C. 113
D. 387

58. A sample of 500 evening students revealed that their annual incomes were
normally distributed with a mean income of $50,000 and a standard deviation of
$4,000. How many students earned between $45,000 and $53,000?
A. 170
B. 273
C. 334
D. 387

59. The mean amount of gasoline and services charged by Key Refining Company
credit customers is $70 per month. The distribution of amounts spent is
approximately normal with a standard deviation of $10. What is the probability of
selecting a credit card customer at random and finding the customer charged
between $70 and $83?
A. 0.1962
B. 0.4032
C. 0.3413
D. 0.4750

60. 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

61. 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

62. A sample of 500 evening students revealed that their annual incomes were
normally distributed with a mean income of $50,000 and a standard deviation of
$4,000. How many students earned less than $45,000?
A. 53
B. 197
C. 303
D. 35

63. A sample of 500 evening students revealed that their annual incomes were
normally distributed with a mean income of $50,000 and a standard deviation of
$4,000. How many students earned more than $55,000?
A. 53
B. 197
C. 303
D. 35

64. 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

65. The weekly mean income of a group of executives is $1,000 and the standard
deviation of this group is $100. The distribution is normal. What percent of the
executives have an income of $925 or less?
A. About 15%
B. About 85%
C. About 50%
D. About 23%

66. The weights of cans of fruit are 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. About 1%
B. About 84%
C. About 0.26%
D. About 0.01%

67. 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%

68. A study of a company's practice regarding the payment of invoices revealed


that on the average an invoice was paid 20 days after it was received. The standard
deviation equalled five days. Assuming that the distribution is normal, what percent
of the invoices were paid within 15 days of receipt?
A. 15.87%
B. 37.91%
C. 34.13%
D. 86.74%

69. Ball-Bearings, Inc. produces ball bearings automatically on a Kronar BBX


machine. For one of the ball bearings, the mean diameter is set at 20.00 mm
(millimetres). The standard deviation of the production over a long period of time
was computed to be 0.150 mm. What percent of the ball bearings will have
diameters 20.27 mm or more?
A. 41.00%
B. 12.62%
C. 3.59%
D. 85.00%

70. A cola-dispensing machine is set to dispense a mean of 2.02 litres into a


container labelled 2 liters. Actual quantities dispensed vary and the amounts are
normally distributed with a standard deviation of 0.015 litres. What is the probability
a container will have less than 2 litres?
A. 0.0918
B. 0.3413
C. 0.1926
D. 0.8741

71. The driver's seat in most vehicles is set to comfortably fit a person who is at
least 159 cm tall. The distribution of heights of adult women is approximately
normal with a mean of 161.5 cm and a standard deviation of 6.3 cm. Determine the
percentage of women who can be expected to be uncomfortable in the driver's seat
of their car without some sort of an adjustment.
A. 0.3446.
B. 0.1554.
C. 0.6554.
D. 0.8446

72. The average score of 100 students taking a statistics final was 70 with a
standard deviation of 7. Assuming a normal distribution, approximately how many
scored 90 or higher?
A. 0.4979
B. 0.0021

C. 0.9979
D. 2.86

73. The average score of 100 students taking a statistics final was 70 with a
standard deviation of 7. Assuming a normal distribution, approximately how many
scored less than 60?
A. 0.2271
B. 0.3729
C. 0.8929
D. D)-1.14
E. 0.0764

74. The average score of 100 students taking a statistics final was 70 with a
standard deviation of 7. Assuming a normal distribution, approximately how many
scored greater than 65?
A. 0.2611
B. 0.2389
C. 0.7611
D. D)-0.714

75. The net profit from a certain investment is normally distributed with a mean of
$10,000 and a standard deviation of $5,000. The probability that the investor will
not have a net loss is:
A. 0.4772
B. 0.9544
C. 0.0228
D. 0.9772
E. 1.0

76. The net profit from a certain investment is normally distributed with a mean of
$10,000 and a standard deviation of $5,000. The probability that the investor will
have a net loss is:
A. 0.4772

B. 0.9544
C. 0.0228
D. 0.9772
E. 1.0

77. A sample of 500 evening students revealed that their annual incomes were
normally distributed with a mean income of $50,000 and a standard deviation of
$4,000. What is the income that separates the top 25% from the lower 75% of the
incomes?
A. $2,680
B. $47,320
C. $50,000
D. $52,680

78. A sample of 500 evening students revealed that their annual incomes were
normally distributed with a mean income of $50,000 and a standard deviation of
$4,000. What is the income that separates the top 5% from the lower 95% of the
incomes?
A. $43,420
B. $47,320
C. $56,580
D. $52,680

79. Suppose a tire manufacturer wants to set a mileage guarantee on its new XB 70
tire. Life test revealed that the mean mileage is 47,900 and the standard deviation
of the normally distributed distribution of mileage is 2,050 miles. The manufacturer
wants to set the guaranteed mileage so that no more than 5 percent of the tires will
have to be replaced. What guaranteed mileage should the manufacturer announce?
A. 44,528
B. 32,960
C. 49,621
D. 40,922

80. Past experience of a large manufacturing firm with administering a test to


recent college graduates who had applied for a job revealed that the mean test
score was 500, and the standard deviation was 50. The distribution of the test
scores was normal. Based on this experience, management is considering placing a
person whose score is in the upper 6 percent of the distribution directly into a
responsible position. What is the lowest score a college graduate must earn to
qualify for a responsible position?
A. 50
B. 625
C. 460
D. 578

81. An analysis of the grades on the first test in History 101 revealed that they
approximate a normal curve with a mean of 75 and a standard deviation of 8. The
instructor wants to award the grade of A to the upper 10 percent of the test grades.
What is the dividing point between an A and a B grade?
A. 80
B. 85
C. 90
D. 95

82. Management is considering adopting a bonus system to increase production.


One suggestion is to pay a bonus on the highest 5 percent of production based on
past experience. Past records indicate that, on the average, 4,000 units of a small
assembly are produced during a week. The distribution of the weekly production is
approximately normally distributed with a standard deviation of 60 units. If the
bonus is paid on the upper 5 percent of production, the bonus will be paid on how
many units or more?
A. 6,255
B. 5,120
C. 3,196
D. 4,099

83. For the standard normal distribution, what z-score corresponds with the 85%
percentile?
A. 0.30

B. 2.05
C. 0.15
D. 1.04

84. A statistics student receives a grade of 85 on a statistics midterm. If the


corresponding z-score equals +1.5 and the standard deviation equals 7, the average
grade on this exam is _______.
A. 74.5
B. 75.4
C. 68.5
D. 76.9

85. From past history, the scores on a statistics test are normally distributed with a
mean of 70% and a standard deviation of 5%. To earn an "A" on the test, a student
must be in the top 5% of the class. What should a student score to receive an "A"?
A. 80.84
B. 75.49
C. 78.2
D. 76.90

86. From past history, the scores on a statistics test are normally distributed with a
mean of 70% and a standard deviation of 5%. To earn a "B" on the test, a student
must be in the top 15% of the class. What should a student score to receive a "B"?
A. 75.18
B. 75.49
C. 81.48
D. 76.90

87. From past history, the scores on a statistics test are normally distributed with a
mean of 70% and a standard deviation of 5%. To earn a "C" on the test, a student
must be in the top 25% of the class. What should a student score to receive a "C"?
A. 77.21
B. 73.37

C. 73.96
D. 76.90

88. Bottomline Ink, a forms management company, fills 100 orders a day with a 2%
error rate in the completed orders. Assume this to be a binomial distribution. What
is the mean for this distribution?
A. 0.02
B. 1.4
C. 2
D. There is no mean for this type of distribution.

89. Bottomline Ink, a forms management company, fills 100 orders a day with a 2%
error rate in the completed orders. Assume this to be a binomial distribution. What
is the standard deviation for this distribution?
A. 0.02
B. 1.4
C. 2
D. There is no standard deviation for this type of distribution.

90. Bottomline Ink, a forms management company, fills 100 orders a day with a 2%
error rate in the completed orders. Assume this to be a binomial distribution. What
is the probability that there will be more than 5 order errors in a given day?
A. 0.0155
B. 0.4838
C. 0.9838
D. 2.1428

91. i. A continuity correction compensates for estimating a discrete distribution with


a continuous distribution.
ii. The binomial can be used to approximate the normal distribution for small sized
samples.
iii. The binomial may be used to approximate the normal distribution when the
probability, p, remains the same from trial to trial.

A. (i), (ii), and (iii) are all correct statements.


B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (i), (ii), and (iii) are all false statements.

92. What is the value of the continuity correction factor?


A. 1.00
B. 0.50
C. 100
D. 1.96

93. i. A continuity correction compensates for estimating a discrete distribution with


a continuous distribution.
ii. The normal probability distribution is generally deemed a good approximation for
the binomial probability distribution when np and n(1 - p) are both greater than five.
iii. When a continuity correction factor is used, its value is 1.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (i), (ii), and (iii) are all false statements.

94. i. A continuity correction compensates for estimating a discrete distribution with


a continuous distribution.
ii. The normal probability distribution is generally deemed a good approximation for
the binomial probability distribution when np and n(1 - p) are both greater than five.
iii. When a continuity correction factor is used, its value is 0.5.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).

D. (i) and (ii) are correct statements but not (iii).


E. (i), (ii), and (iii) are all false statements.

95. A new drug has been developed that is found to relieve nasal congestion in 90
percent of those with the condition. The new drug is administered to 300 patients
with the condition. What is the probability that more than 265 will be relieved of
nasal congestion?
A. 0.0916
B. 0.1922
C. 0.8078
D. 0.3078

96. Tabulation of a strike vote showed that 90% of those voting cast their ballot in
favour of strike action. You take a sample of 50 voters. Assume this to be a binomial
distribution.
What is the mean for this distribution?
A. 450
B. 90
C. 45
D. There is no mean for this type of distribution

97. Tabulation of a strike vote showed that 90% of those voting cast their ballot in
favour of strike action. You take a sample of 50 voters. Assume this to be a binomial
distribution.
What is the standard deviation for this distribution?
A. 45
B. 4.5
C. 2.12
D. 20.25

98. Tabulation of a strike vote showed that 90% of those voting cast their ballot in
favour of strike action. You take a sample of 50 voters. Assume this to be a binomial
distribution.

What is the probability that more than 45 of the voters from your sample voted in
favour of strike action?
A. 0.50
B. 0.0948
C. 0.5948
D. 0.4052

99. Tabulation of a strike vote showed that 90% of those voting cast their ballot in
favour of strike action. You take a sample of 50 voters. Assume this to be a binomial
distribution.
What is the probability that fewer than 40 of your sample voters are in favour of
strike action?
A. 0.2594
B. 0.4952
C. 0.0048
D. 0.0091

100. Determine the z-score associated with an area of .1950 from the mean of a
normal distribution to that positive z-score.
A. 0.41
B. 0.51
C. 0.5
D. 0.01
E. -0.41

101. Determine the z-score associated with an area of 0.4925 from the mean of a
normal distribution to that negative z-score.
A. 2.43
B. -2.43
C. -2.4
D. 2.4
E. -2.44

102. Determine the z-score associated with an area of 0.25 from the mean of a
normal distribution to that positive z-score.
A. 0.1368
B. 0.70
C. 0.67
D. 0.68
E. 0.69

103. Determine the z-score associated with an area of 0.48 from the mean of a
normal distribution to that positive z-score.
A. 2.05
B. 2.06
C. 0.1844
D. 0.1808
E. 2.60

104. (i) About 95.5% percent of the area under the normal curve is within plus two
and minus two standard deviations of the mean.
(ii) The normal distribution is a continuous probability distribution.
(iii) In a standard normal distribution, = 0 and = 1.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (i), (ii), and (iii) are all false statements.

105. (i) About 95.5% percent of the area under the normal curve is within plus three
and minus three standard deviations of the mean.
(ii) The normal distribution is a continuous probability distribution.
(iii) In a standard normal distribution, = 0 and = 1.

A. (i), (ii), and (iii) are all correct statements.


B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (ii) and (iii) are correct statements but not (i).

106. (i) About 95.5% percent of the area under the normal curve is within plus one
and minus one standard deviation of the mean.
(ii) The normal distribution is a continuous probability distribution.
(iii) In a standard normal distribution, = 0 and = 1.
A. (i), (ii), and (iii) are all correct statements
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (ii) and (iii) are correct statements but not (i).

107. (i) The formula to convert any normal distribution to the standard normal
distribution is

(ii) The standardized z value measures distance from the mean in units of standard
deviation.
(iii) The area under a normal curve to the right of a z-score of zero is a proportion of
0.50.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (ii) and (iii) are correct statements but not (i).

108. (i) The formula to convert any normal distribution to the standard normal
distribution is

(ii) The standardized z value measures distance from the mean in units of standard
deviation.
(iii) The area under a normal curve to the right of a z-score of zero is 1.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (ii) and (iii) are correct statements but not (i).

109. (i) The formula to convert any normal distribution to the standard normal
distribution is

(ii) The standardized z value measures distance from the mean in units of standard
deviation.
(iii) The area under a normal curve to the right of a z-score of -1.0 is a proportion of
0.3413.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (ii) and (iii) are correct statements but not (i).

110. (i) The mean of a normal probability distribution is 60 and the standard
deviation is 5. 95.44 percent of observations lie between 50 and 70.
(ii) A z-value of -2.00 indicates that corresponding X value lies to the left of the
mean.
(iii) One of the properties of the normal curve is that it gets closer to the horizontal
axis, but never touches it. This property of the normal curve is called asymptotic.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).

D. (i) and (ii) are correct statements but not (iii).


E. (ii) and (iii) are correct statements but not (i).

111. (i) The mean of a normal probability distribution is 60 and the standard
deviation is 5. 95.44 percent of observations lie between 50 and 60.
(ii) A z-value of -2.00 indicates that corresponding X value lies to the left of the
mean.
(iii) One of the properties of the normal curve is that it gets closer to the horizontal
axis, but never touches it. This property of the normal curve is called asymptotic.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (ii) and (iii) are correct statements but not (i).

112. (i) The mean of a normal probability distribution is 60 and the standard
deviation is 5. 95.44 percent of observations lie between 50 and 75.
(ii) A z-value of -2.00 indicates that corresponding X value lies to the left of the
mean.
(iii) One of the properties of the normal curve is that it gets closer to the horizontal
axis, but never touches it. This property of the normal curve is called asymptotic.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (ii) and (iii) are correct statements but not (i).

113. (i) The proportion of the area under a normal curve to the right of z = -1.21 is
0.8869.
(ii) The proportion of the area under a normal curve to the left of z = 0.50 is 0.6915.
(iii) The proportion of the area under a normal curve to the left of z = -2.10 is
0.0179.
A. (i), (ii), and (iii) are all correct statements.

B. (i) is a correct statement but not (ii) or (iii).


C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (ii) and (iii) are correct statements but not (i).

114. (i) The proportion of the area under a normal curve to the right of z = -1.21 is
0.8869.
(ii) The proportion of the area under a normal curve to the left of z = 0.50 is 0.6941.
(iii) The proportion of the area under a normal curve to the left of z = -2.10 is
0.1179.
A. (i), (ii), and (iii) are all correct statements
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (ii) and (iii) are correct statements but not (i).

115. (i) The proportion of the area under a normal curve to the right of z = -1.21 is
0.8869.
(ii) The proportion of the area under a normal curve to the left of z = 0.50 is 0.1914.
(iii) The proportion of the area under a normal curve to the left of z = -2.10 is
0.0179.
A. (i), (ii), and (iii) are all correct statements
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (ii) and (iii) are correct statements but not (i).

116. A statistics student receives a grade of 90 on a statistics midterm. If the


corresponding z-score equals +1.5 and the standard deviation equals 7, determine
the average grade on this exam.
A. 74.0
B. 79.5

C. 74.7
D. 79.3
E. 75.0

117. 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.

(i) 250 students earned more than $30,000.


(ii) 341 students earned between $27,000 and $33,000.
(iii) 239 students earned between $24,000 and $30,000.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (ii) and (iii) are correct statements but not (i).

118. 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.

(i) 250 students earned more than $30,000.


(ii) 341 students earned between $27,000 and $33,000.
(iii) 290 students earned between $24,000 and $30,000.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (ii) and (iii) are correct statements but not (i).

119. 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.

(i) 250 students earned more than $30,000.


(ii) 314 students earned between $27,000 and $33,000.
(iii) 239 students earned between $24,000 and $30,000.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (ii) and (iii) are correct statements but not (i).

120. 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.

(i) 250 students earned more than $30,000.


(ii) 500 students earned between $20,000 and $40,000.
(iii) 3 students earned less than $22,500.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (ii) and (iii) are correct statements but not (i).

121. 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.

(i) 250 students earned more than $30,000.


(ii) 500 students earned between $20,000 and $40,000.

(iii) 6 students earned less than $22,500.


A. (i), (ii), and (iii) are all correct statements
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (ii) and (iii) are correct statements but not (i).

122. 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.

(i) 250 students earned more than $30,000.


(ii) 500 students earned between $20,000 and $40,000.
(iii) 11 students earned more than $36,000.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (ii) and (iii) are correct statements but not (i).

123. A loaf of bread is normally distributed with a mean of 22 ounces and a


standard deviation of ounces.

(i) The probability that a loaf of bread is < 20 ounces is 0.0.


(ii) The probability that a loaf of bread is > 21 ounces is 0.9772.
(iii) The probability that a loaf of bread is < 24 ounces is 1.0.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (ii) and (iii) are correct statements but not (i).

124. A loaf of bread is normally distributed with a mean of 22 ounces and a


standard deviation of ounces.

(i) The probability that a loaf of bread is < 20 ounces is 0.0.


(ii) The probability that a loaf of bread is > 21 ounces is 0.9772.
(iii) The probability that a loaf of bread is < 24 ounces is 0.00.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (ii) and (iii) are correct statements but not (i).

125. A loaf of bread is normally distributed with a mean of 22 ounces and a


standard deviation of ounces.

(i) The probability that a loaf of bread is > 23 ounces is 0.0228.


(ii) The probability that a loaf of bread is > 21 ounces is 0.9772.
(iii) The probability that a loaf of bread is < 24 ounces is 1.0.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (ii) and (iii) are correct statements but not (i).

126. A loaf of bread is normally distributed with a mean of 22 ounces and a


standard deviation of ounces.

(i) The probability that a loaf of bread is < 20 ounces is 0.0.


(ii) The probability that a loaf of bread is > 21 ounces is 0.4772.
(iii) The probability that a loaf of bread is < 24 ounces is 1.0.

A. (i), (ii), and (iii) are all correct statements.


B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (ii) and (iii) are correct statements but not (i).

127. A loaf of bread is normally distributed with a mean of 22 ounces and a


standard deviation of ounces.

(i) The probability that a loaf of bread is between 20.75 and 23.25 ounces is 0.9876.
(ii) The probability that a loaf of bread is > 21 ounces is 0.9772.
A. (i) and (ii) are correct statements.
B. (i) is a correct statement but not (ii).
C. (ii) is a correct statement but not (i).
D. (i) and (i) are false statements.

128. A loaf of bread is normally distributed with a mean of 22 ounces and a


standard deviation of ounces.

(i) The probability that a loaf of bread is 22.25 ounces is 0.0.


(ii) The probability that a loaf of bread is > 21 ounces is 0.9772.
(iii) The probability that a loaf of bread is < 24 ounces is 1.0.
A. (i), (ii), and (iii) are all correct statements
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (ii) and (iii) are correct statements but not (i).

129. A loaf of bread is normally distributed with a mean of 22 ounces and a


standard deviation of ounces.

(i) The probability that a loaf of bread is 22.25 ounces is 0.0.


(ii) The probability that a loaf of bread is between 21.75 and 22.25 ounces is
0.3830.
(iii) The probability that a loaf of bread is < 24 ounces is 1.0.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (ii) and (iii) are correct statements but not (i).

130. Two business major students, in two different sections of economics, were
comparing test scores. The following gives the students' scores, class mean, and
standard deviation for each section.

(i) The student from Section 2 scored better compared to the rest of their section.
(ii) The z-score of the student from section 1 is 1.28.
(iii) The z-score of the student from section 2 is 1.87.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (ii) and (iii) are correct statements but not (i).

131. Two business major students, in two different sections of economics, were
comparing test scores. The following gives the students' scores, class mean, and
standard deviation for each section.

(i) The student from Section 2 scored better compared to the rest of their section.
(ii) The z-score of the student from section 1 is 1.82.
(iii) The z-score of the student from section 2 is 1.87.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (ii) and (iii) are correct statements but not (i).

132. Two business major students, in two different sections of economics, were
comparing test scores. The following gives the students' scores, class mean, and
standard deviation for each section.

(i) The student from Section 2 scored better compared to the rest of their section.
(ii) The z-score of the student from section 1 is 1.28.
(iii) The z-score of the student from section 2 is 2.87.
A. (i), (ii), and (iii) are all correct statements.
B. (i) is a correct statement but not (ii) or (iii).
C. (i) and (iii) are correct statements but not (ii).
D. (i) and (ii) are correct statements but not (iii).
E. (ii) and (iii) are correct statements but not (i).

133. One classic use of the normal distribution is inspired by a letter to Dear Abbey
in which a wife claimed to have given birth 308 days after a brief visit from her
husband, who was serving in the Navy. The lengths of pregnancies are normally
distributed with a mean of 268 days and a standard deviation of 15 days. Given this
information.

(i) the probability of a pregnancy lasting 308 days or longer is 0.0038.


(ii) The result suggests that the husband is not the father of the child.

A. (i) and (ii) are correct statements.


B. (i) is a correct statement but not (ii).
C. (ii) is a correct statement but not (i).
D. (i) and (i) are false statements.

134. One classic use of the normal distribution is inspired by a letter to Dear Abbey
in which a wife claimed to have given birth 308 days after a brief visit from her
husband, who was serving in the Navy. The lengths of pregnancies are normally
distributed with a mean of 268 days and a standard deviation of 15 days. Given this
information.

(i) the probability of a pregnancy lasting 300 days or longer is 0.0166.


(ii) The result suggests that the husband is not the father of the child.
A. (i) and (ii) are correct statements.
B. (i) is a correct statement but not (ii).
C. (ii) is a correct statement but not (i).
D. (i) and (ii) are false statements.

135. Assume that human body temperatures are normally distributed with a mean
of 36.4C and a standard deviation of 0.7C. If we define a fever to be a body
temperature above 38.0C.

(i) 01.1% of normal and healthy persons would be considered to have a fever.
(ii) This suggests that a cut-off of 38.0C is appropriate.
A. (i) and (ii) are correct statements.
B. (i) is a correct statement but not (ii).
C. (ii) is a correct statement but not (i).
D. (i) and (ii) are false statements.

136. Replacement times for TV sets are normally distributed with a mean of 8.2
years and a standard deviation of 1.1 years, (based on data from "Getting Things
Fixed," Consumer Reports).

(i) The replacement time that separated the top 20% from the bottom 80% is 9.124
years.
(ii) The probability that a randomly selected TV will be replaced in less than 4.0
years is 0.00.
A. (i) and (ii) are correct statements.
B. (i) is a correct statement but not (ii).
C. (ii) is a correct statement but not (i).
D. (i) and (ii) are false statements.

137. Replacement times for TV sets are normally distributed with a mean of 8.2
years and a standard deviation of 1.1 years, (based on data from "Getting Things
Fixed," Consumer Reports).

(i) The replacement time that separated the top 20% from the bottom 80% is 9.124
years.
(ii) The probability that a randomly selected TV will be replaced in less than 4.0
years is 0.40.
A. (i) and (ii) are correct statements.
B. (i) is a correct statement but not (ii).
C. (ii) is a correct statement but not (i).
D. (i) and (ii) are false statements.

138. Replacement times for TV sets are normally distributed with a mean of 8.2
years and a standard deviation of 1.1 years, (based on data from "Getting Things
Fixed," Consumer Reports).

(i) The replacement time that separated the top 20% from the bottom 80% is 9.124
years.
(ii) The probability that a randomly selected TV will be replaced after more than
10.0 years is 0.0505.
A. (i) and (ii) are correct statements.
B. (i) is a correct statement but not (ii).
C. (ii) is a correct statement but not (i).

D. (i) and (ii) are false statements.

139. Replacement times for TV sets are normally distributed with a mean of 8.2
years and a standard deviation of 1.1 years, (based on data from "Getting Things
Fixed," Consumer Reports).

(i) If you want to provide a warranty so that only 3% of the TV sets will be replaced
before the warranty expires, the length of warranty you would recommend would be
6.13 years.
(ii) The probability that a randomly selected TV will be replaced after more than
10.0 years is 0.0505.
A. (i) and (ii) are correct statements.
B. (i) is a correct statement but not (ii).
C. (ii) is a correct statement but not (i).
D. (i) and (ii) are false statements.

140. Normally distributed observations such as a person's weight, height, or shoe


size occur quite frequently in nature. Business people who are aware of this use it to
their advantage. A purchasing agent for a large retailer buying 15,000 pairs of
women's shoes used the normal curve to decide on the order quantities for the
various sizes. If women's average shoe size is 7.5 with a standard deviation of 1.5,
how many pairs should be ordered between sizes 6.5 and 9?
A. 8640
B. 8849
C. 8664
D. 8864
E. 8940

141. Normally distributed observations such as a person's weight, height or shoe


size occur quite frequently in nature. Business people who are aware of this use it to
their advantage. A purchasing agent for a college bookstore buying 300 golf shirts
used the normal curve to decide on the order quantities for the various sizes. If
men's average shirt size is 15.5 with a standard deviation of .50, how many shirts
should be ordered in sizes over 16.5?
A. 7

B. 8
C. 9
D. 10
E. 6

142. One classic use of the normal distribution is inspired by a letter to Dear Abbey
in which a wife claimed to have given birth 308 days after a brief visit from her
husband, who was serving in the Navy. The lengths of pregnancies are normally
distributed with a mean of 268 days and a standard deviation of 15 days. Given this
information.

(i) the probability of a pregnancy lasting 308 days or longer is 0.0038.


(ii) The result suggests that the husband is the father of the child.
A. (i) and (ii) are correct statements.
B. (i) is a correct statement but not (ii).
C. (ii) is a correct statement but not (i).
D. (i) and (ii) are false statements.

143. One classic use of the normal distribution is inspired by a letter to Dear Abbey
in which a wife claimed to have given birth 308 days after a brief visit from her
husband, who was serving in the Navy. The lengths of pregnancies are normally
distributed with a mean of 268 days and a standard deviation of 15 days. Given this
information.

(i) the probability of a pregnancy lasting 300 days or longer is 0.0166.


(ii) The result suggests that the husband is the father of the child.
A. (i) and (ii) are correct statements.
B. (i) is a correct statement but not (ii).
C. (ii) is a correct statement but not (i).
D. (i) and (ii) are false statements.

144. A loaf of bread is normally distributed with a mean of 22 ounces and a


standard deviation of ounces.

(i) The probability that a loaf of bread is between 20.75 and 23.25 ounces is 0.7662.
(ii) The probability that a loaf of bread is > 21 ounces is 0.9772.
A. (i) and (ii) are correct statements.
B. (i) is a correct statement but not (ii).
C. (ii) is a correct statement but not (i).
D. (i) and (ii) are false statements.

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