Exam

Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) If two events are collectively exhaustive, what is the probability that one or the other occurs? 1)
A) 0
B) 0.50
C) 1.00
D) Cannot be determined from the information given.

2) If two events are mutually exclusive, what is the probability that both occur at the same time? 2)
A) 0
B) 0.50
C) 1.00
D) Cannot be determined from the information given.

3) If two events are mutually exclusive and collectively exhaustive, what is the probability that both 3)
occur?
A) 0
B) 0.50
C) 1.00
D) Cannot be determined from the information given.

4) If the outcome of event A is not affected by event B, then events A and B are said to be 4)
A) mutually exclusive. B) independent.
C) collectively exhaustive. D) None of the above.

5) If event A and event B cannot occur at the same time, then events A and B are said to be 5)
A) mutually exclusive. B) independent.
C) collectively exhaustive. D) None of the above.

6) The collection of all possible events is called 6)

A) the null set. B) a simple probability.
C) a joint probability. D) a sample space.

7) All the events in the sample space that are not part of the specified event are called 7)
A) joint events. B) the complement of the event.
C) simple events. D) the sample space.

8) When using the general multiplication rule, P(A and B) is equal to 8)

A) P(A)P(B). B) P(B)/P(A). C) P(A|B)P(B). D) P(A)/P(B).

9) A business venture can result in the following outcomes (with their corresponding chance of 9)
occurring in parentheses): Highly Successful (10%), Successful (25%), Break Even (25%),
Disappointing (20%), and Highly Disappointing (?). If these are the only outcomes possible for the
business venture, what is the chance that the business venture will be considered Highly
Disappointing?
A) 20% B) 15% C) 25% D) 10%

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 10) A survey of banks revealed the following distribution for the interest rate being charged on a home 10)
loan (based on a 30-year mortgage with a 10% down payment).

Interest Rate 3.20% 3.30% 3.40% 3.50% 3.60%

to to to to and
3.29% 3.39% 3.49% 3.59% above
Probability 0.12 0.23 0.24 0.35 0.06

If a bank is selected at random from this distribution, what is the chance that the interest rate
charged on a home loan will exceed 3.49%?
A) 0.59 B) 0.06 C) 1.00 D) 0.41
Testgen questions still do not copy to other applications.
11) The probability that a new advertising campaign will increase sales is assessed as being 0.80. The 11)
probability that the cost of developing the new ad campaign can be kept within the original budget
allocation is 0.40. Assuming that the two events are independent, the probability that the cost is
kept within budget and the campaign will increase sales is
A) 0.88. B) 0.32. C) 0.40. D) 0.20.

12) A company has 2 machines that produce widgets. An older machine produces 23% defective 12)
widgets, while the new machine produces only 8% defective widgets. In addition, the new machine
produces 3 times as many widgets as the older machine does. What is the probability that a
randomly chosen widget produced by the company is defective?
A) 0.078 B) 0.156 C) 0.1175 D) 0.310

13) A company has 2 machines that produce widgets. An older machine produces 23% defective 13)
widgets, while the new machine produces only 8% defective widgets. In addition, the new machine
produces 3 times as many widgets as the older machine does. Given that a randomly chosen
widget was tested and was found to be defective, what is the probability that it was produced by
the new machine?
A) 0.511 B) 0.489 C) 0.08 D) 0.15

An alcohol awareness task force at a Big-Ten university sampled 200 students after the midterm to ask them whether they
went bar hopping the weekend before the midterm or spent the weekend studying, and whether they did well or poorly on
the midterm. The following result was obtained.

Did Well on Midterm Did Poorly on Midterm

Studying for Exam 80 20
Went Bar Hopping 30 70

14) What is the probability that a randomly selected student who went bar hopping did well on the 14)
midterm?
A) 30/200 or 15% B) 30/100 or 30%
C) 30/110 or 27.27% D) (100/200) (110/200) or 27.50%

15) What is the probability that a randomly selected student did well on the midterm or went bar 15)
hopping the weekend before the midterm?
A) (80 + 30)/200 or (30 + 80)/200 or 55%
B) 30/200 or 15%
C) (30 + 70)/200 or (70 + 30)/200 or 50%
D) (80 + 30 + 70)/200 or (110 + 100 - 30)/200 or 90%

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 16) What is the probability that a randomly selected student did well on the midterm and also went bar 16)
hopping the weekend before the midterm?
A) (30 + 70)/200 or 50% B) (80 + 30 + 70)/200 or 90%
C) 30/200 or 15% D) (80 + 30)/200 or 55%

17) The events "Did Well on Midterm" and "Did Poorly on Midterm" are 17)
A) mutually exclusive. B) collectively exhaustive.
C) dependent. D) All of the above.

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

A survey is taken among customers of a fast-food restaurant to determine preference for hamburger or chicken. Of 200
respondents selected, 75 were children and 125 were adults. 120 preferred hamburger and 80 preferred chicken. 55 of the
children preferred hamburger.

18) The probability that a randomly selected individual is an adult is ________. 18)

19) The probability that a randomly selected individual is an adult or a child is ________. 19)

20) The probability that a randomly selected individual is a child and prefers chicken is 20)
________.

21) The probability that a randomly selected individual is a child or prefers hamburger is 21)
________.

22) Assume we know the person is a child. The probability that this individual prefers 22)
hamburger is ________.

23) Assume we know that a person prefers hamburger. The probability that this individual is a 23)
child is ________.

Jake woke up late in the morning on the day that he has to go to school to take an important test. He can either take the
shuttle bus which is usually running late 20% of the time or ride his unreliable motorcycle which breaks down 40% of the
time. He decides to toss a fair coin to make his choice.

24) If Jake, in fact, gets to the test on time, what is the probability that he took the bus? 24)

25) If Jake is late to the test, what is the probability that he rode his bike? 25)

A consulting firm that surveyed consumers' holiday shopping behavior found that the percentage of consumers from the
U.S., Canada, and China who said that they planned to spend more on holiday shopping were 40%, 34% and 73%,
respectively. The survey also found that the percentage of consumers from the U.S., Canada, and China who said that they
were willing to share personal information with retailers in order to receive personalized offers from retailers were 55%, 46%
and 72%, respectively. Assume that there are equal portions of consumers being surveyed from each of the three countries,
the survey results are good representations of the three populations of consumers, and whether a consumer plans to spend
more on holiday shopping is statistically independent of whether he/she is willing to share personal information with
retailers in order to receive personalized offers from retailers.
26) If you randomly select a consumer from the U.S., what is the probability that the consumer 26)
plans to spend more on holiday shopping and is willing to share personal information with
retailers in order to receive personalized offers from retailers?

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27) If you randomly select a consumer from China, what is the probability that the consumer 27)
plans to spend more on holiday shopping and is willing to share personal information with
retailers in order to receive personalized offers from retailers?

28) If you randomly select a consumer from the U.S., what is the probability that the consumer 28)
plans to spend more on holiday shopping and is not willing to share personal information
with retailers in order to receive personalized offers from retailers?

29) If you randomly select a consumer from China, what is the probability that the consumer 29)
plans to spend more on holiday shopping and is not willing to share personal information
with retailers in order to receive personalized offers from retailers?

30) If you randomly select a consumer from the U.S., what is the probability that the consumer 30)
does not plan to spend more on holiday shopping and is willing to share personal
information with retailers in order to receive personalized offers from retailers?

31) If you randomly select a consumer from China, what is the probability that the consumer 31)
does not plan to spend more on holiday shopping and is willing to share personal
information with retailers in order to receive personalized offers from retailers?

32) If you randomly select a consumer from the U.S., what is the probability that the consumer 32)
does not plan to spend more on holiday shopping and is not willing to share personal
information with retailers in order to receive personalized offers from retailers?

33) If you randomly select a consumer from China, what is the probability that the consumer 33)
does not plan to spend more on holiday shopping and is not willing to share personal
information with retailers in order to receive personalized offers from retailers?

34) If you randomly select a consumer from any of the three countries, what is the probability 34)
that the consumer plans to spend more on holiday shopping?

35) If you randomly select a consumer from any of the three countries, what is the probability 35)
that the consumer is willing to share personal information with retailers in order to receive
personalized offers from retailers?

36) If you randomly select a consumer from any of the three countries, what is the probability 36)
that the consumer plans to spend more on holiday shopping and is willing to share
personal information with retailers in order to receive personalized offers from retailers?

37) If you randomly select a consumer from any of the three countries, what is the probability 37)
that the consumer does not plan to spend more on holiday shopping and is not willing to
share personal information with retailers in order to receive personalized offers from
retailers?

38) If you randomly select a consumer from any of the three countries, what is the probability 38)
that the consumer is from the U.S. who plans to spend more on holiday shopping and is
willing to share personal information with retailers in order to receive personalized offers
from retailers?

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39) If you randomly select a consumer from any of the three countries, what is the probability 39)
that the consumer is from the U.S. or China who plans to spend more on holiday shopping
and is willing to share personal information with retailers in order to receive personalized
offers from retailers?

40) If you randomly select a consumer from any of the three countries, what is the probability 40)
that the consumer is from the U.S. or Canada who plans to spend more on holiday
shopping and is willing to share personal information with retailers in order to receive
personalized offers from retailers?

41) If you randomly select a consumer from any of the three countries, what is the probability 41)
that the consumer is from China or Canada who plans to spend more on holiday shopping
and is willing to share personal information with retailers in order to receive personalized
offers from retailers?

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Answer Key
Testname: CH4

1) C
2) A
3) A
4) B
5) A
6) D
7) B
8) C
9) A
10) D
11) B
12) C
13) A
14) B
15) D
16) C
17) D
18) 125/200 or 62.5%
19) 200/200 or 100%
20) 20/200 or 10%
21) 140/200 or 70%
22) 55/75 or 73.33%
23) 55/120 or 45.83%
24) 0.5714 or 57.14%
25) 0.6667 or 66.67%
26) (0.4)(0.55) = 0.22
27) (0.73)(0.72) = 0.5256
28) (0.4)(0.45) = 0.1800
29) (0.73)(0.28) = 0.2044
30) (0.6)(0.55) = 0.3300
31) (0.27)(0.72) = 0.1944
32) (0.6)(0.45) = 0.2700
33) (0.27)(0.28) = 0.0756
34) (0.4)(1/3)+(0.34)(1/3)+(0.73)(1/3) = 0.4900
35) (0.55)(1/3)+(0.46)(1/3)+(0.72)(1/3) = 0.5767
36) (0.2200)(1/3)+(0.1564)(1/3)+(0.5256)(1/3) = 0.3007
37) (0.2700)(1/3)+(0.3564)(1/3)+(0.0756)(1/3) = 0.2340
38) (0.22)(1/3) = 0.0733
39) 0.0733+0.1752 = 0.2485
40) 0.0733+0.0521 = 0.1255
41) 0.1752+0.0521 = 0.2273