1.

An insurance company evaluates many numerical variables about a person before

deciding on an
appropriate rate for automobile insurance. A representative from a local insurance agency
selected a
random sample of insured drivers and recorded, X, the number of claims each made in the last
3
years, with the following results.
X f
1 14
2 18
3 12
4 5
5 1
i. how many drivers are represented in the sample?
a) 5
b) 15
c) 18
d) 50
ii. how many total claims are represented in the sample?
a) 15
b) 50
c) 111
d) 250

2. The closing stock price of Ahmadi, Inc. for a sample of 10 trading days is shown below.

Day Stock Price

1 84
2 87
3 84
4 88
5 85
6 90
7 91
8 83
9 82
10 86
For the above sample, compute the following measures.
a. The mean
b. The median
c. The mode
d. The variance
e. The standard deviation
f. The range

3. In 2012, the average donation to the Help Way was $225 with a standard deviation of
$45. In 2013, the average donation was $400 with a standard deviation of $60. In which
year did the donations show a more dispersed distribution?

4. Descriptive statistics for the closing stock prices of two companies for several trading
periods are shown below.
Baba, Inc. Maman, Inc.

Mean 4.04 Mean 16.41

Standard Error 0.11 Standard Error 0.22
Median 4.07 Median 16.83
Mode 3.59 Mode 16.59
Standard Deviation 1.13 Standard Deviation 2.34
Sample Variance 1.28 Sample Variance 5.48
Kurtosis -1.10 Kurtosis 9.10
Skewness 0.04 Skewness -2.85
Range 3.98 Range 12.57
Minimum 2.00 Minimum 6.29
Maximum 5.98 Maximum 18.86
Sum 416.05 Sum 1919.63
Count 103 Count 117

Which company’s stock price has a more dispersed distribution? Explain. Show your
complete work and support your answer.

5. Every spring semester, the School of Business coordinates a luncheon with local business
leaders for graduating seniors, their families, and friends. Corporate sponsorship pays for
the lunches of each of the seniors, but students have to purchase tickets to cover the cost
of lunches served to guests they bring with them. The following histogram represents the
attendance at the senior luncheon, where X is the number of guests each graduating senior
invited to the luncheon and f is the number of graduating seniors in each category.

i. Referring to the histogram, how many graduating seniors attended the

luncheon?
a) 4
b) 152
c) 275
d) 388

ii. Referring to the histogram, if all the tickets purchased were used, how many
guests attended the luncheon?
a) 4
b) 152
c) 275
d) 388

6. The following are the duration in minutes of a sample of long-distance phone calls made
within the continental United States reported by one long-distance carrier.

i. If 1,000 calls were randomly sampled, how many calls lasted under 10
minutes?
a. 220
b. 370
c. 410
d. 590

ii. if 100 calls were randomly sampled, how many calls lasted 15 minutes
or longer?
a. 10
b. 14
c. 26
d. 74

iii. if 10 calls lasted 30 minutes or more, how many calls lasted less than 5
minutes?
a) 10
b) 185
c) 295
d) 500

iv. if 100 calls were randomly sampled, _______ of them would have
lasted at least 15 minutes but less than 20 minutes
a) 6
b) 8
c) 10
d) 16

v. if 100 calls were sampled, _______ of them would have lasted less
than 5 minutes or at least 30 minutes or more.
a) 35
b) 37
c) 39
d) None of the above.

7. A sample of 200 students at a Big-Ten university was taken 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 table
contains the result.

i. of those who went bar hopping the weekend before the midterm in the
sample, _______ percent of them did well on the midterm.
a) 15
b) 27.27
c) 30
d) 55

ii. of those who did well on the midterm in the sample, _______ percent
of them went bar hopping the weekend before the midterm.
a) 15
b) 27.27
c) 30
d) 50

iii. _______ percent of the students in the sample went bar hopping the
weekend before the midterm and did well on the midterm.
a) 15
b) 27.27
c) 30
d) 50

iv. if the sample is a good representation of the population, we can expect

_______ percent of the students in the population to spend the weekend studying and do
poorly
on the midterm.
a) 10
b) 20
c) 45
d) 50

v. if the sample is a good representation of the population, we can expect

_______ percent of those who spent the weekend studying to do poorly on the midterm.
a) 10
b) 20
c) 45
d) 50

vi. if the sample is a good representation of the population, we can expect

_______ percent of those who did poorly on the midterm to have spent the weekend studying.
a) 10
b) 22.22
c) 45
d) 50

8. An experiment consists of selecting a student body president and vice president. All
undergraduate students (1st year to 4th year) are eligible for these offices. How many
sample points (possible outcomes as to the classifications) exist?
a. 4
 b. 16
c. 8
d. 32

9. The counting rule that is used for counting the number of experimental outcomes when n
objects are selected from a set of N objects where order of selection is not important is
called the
a. counting rule for permutations.
b. counting rule for combinations.
c. counting rule for independent events.
d. counting rule for multiple-step experiments.

10. The counting rule that is used for counting the number of experimental outcomes when n
objects are selected from a set of N objects where order of selection is important is called
the
a. counting rule for permutations.
b. counting rule for combinations.
c. counting rule for independent events.
d. counting rule for multiple-step random experiments.

11. From a group of six people, two individuals are to be selected at random. How
many selections are possible?
a. 12
b. 36
c. 15
d. 8

12. The intersection of two mutually exclusive events

a. can be any value between 0 to1.
b. must always be equal to 1.
c. must always be equal to 0.
d. can be any positive value.

13. Two events are mutually exclusive

a. if their intersection is 1.
b. if they have no sample points in common.
c. if their intersection is 0.5.
d. if most of their sample points are in common.

14. The range of probability is

a. 0 to infinity.
b. minus infinity to plus infinity.
c. 0 to 1.
d. -1 to 1.

15. Which of the following statements is always true?

a. -1 P(Ei) 1
b. P(A) = 1 - P(A’)
 c. P(A) + P(B) = 1
d. ∑P 1

16. Events that have no sample points in common are

a. independent events.
b. posterior events.
c. mutually exclusive events.
d. complements.

17. Two events with nonzero probabilities

a. can be both mutually exclusive and independent.
b. can not be both mutually exclusive and independent.
c. are always mutually exclusive.
d. are always independent.

18. The addition law is potentially helpful when we are interested in computing the
probability of
a. independent events
b. the intersection of two events
c. the union of two events
d. conditional events

19. The sum of the probabilities of two complementary events is

a. 0.
b. 0.5.
c. 0.57.
d. 1.0.

20. The set of all possible outcomes of an experiment is

a. a sample point.
b. an event.
c. the population.
d. the sample space.

21. If a six sided die is tossed two times and "3" shows up both times, the probability of "3"
on the third trial is
a. much larger than any other outcome.
b. much smaller than any other outcome.
c. 1/6.
d. 1/216.

22. If A and B are independent events with P(A) = 0.65 and P(A ∩ B) = 0.26, then, P(B) =
a. 0.400.
b. 0.169.
c. 0.390.
d. 0.650.
23. If P(A) = 0.4, P(B | A) = 0.35, P(A ∪ B) = 0.69, then P(B) =
a. 0.14.
b. 0.43.
c. 0.75.
d. 0.59.

24. Of five letters (A, B, C, D, and E), two letters are to be selected at random. How many
possible are possible?
a. 20
b. 7
c. 5!
d. 10

25. Assume your favorite soccer team has 2 games left to finish the season. The outcome of
each game can be win, lose or tie. The number of possible outcomes is
a. 2.
b. 4.
c. 6.
d. 9.

26. Each customer entering a department store will either buy or not buy some merchandise.
An experiment consists of following 3 customers and determining whether or not they
purchase any merchandise. The number of sample points in this experiment is
a. 2.
b. 4.
c. 6.
d. 8.

27. An experiment consists of tossing 4 coins successively. The number of sample points in
this experiment is
a. 16.
b. 8.
c. 4.
d. 2.

28. An experiment consists of three steps. There are four possible results on the first step,
three possible results on the second step, and two possible results on the third step. The
total number of experimental outcomes is
a. 9.
b. 14.
c. 24.
d. 36.

29. If two events are independent, then

a. they must be mutually exclusive.
b. the sum of their probabilities must be equal to one.
c. their intersection must be zero.
 d. the product of their probabilities gives their intersection.

30. The symbol ∩ shows the

a. union of events.
b. intersection of two events.
c. sum of the probabilities of events.
d. sample space.

31. The symbol ∪ shows the

a. union of events.
b. intersection of two events.
c. sum of the probabilities of events.
d. sample space.

32. The union of events A and B is the event containing all the sample points belonging to
a. B or A.
b. A or B.
c. A or B or both.
d. A or B, but not both.

33. If a penny is tossed three times and comes up heads all three times, the probability of
heads on the fourth trial is
a. 0.
b. 1/16.
c. 1/2.
d. larger than the probability of tails.

34. If a coin is tossed three times, the likelihood of obtaining three heads in a row is
a. 0.0.
b. 0.500.
c. 0.875.
d. 0.125.

35. If A and B are independent events with P(A) = 0.5 and P(B) = 0.5, then P(A ∩ B)
a. is 0.00.
b. is 1.00.
c. is 0.5.
d. None of these alternatives is correct.

36. If A and B are independent events with P(A) = 0.4 and P(B) = 0.6, then P(A ∩ B) =
a. 0.76.
b. 1.00.
c. 0.24.
d. 0.20.

37. If A and B are independent events with P(A) = 0.2 and P(B) = 0.6, then P(A ∪ B) =
a. 0.62.
 b. 0.12.
c. 0.60.
d. 0.68.

38. If A and B are mutually exclusive events with P(A) = 0.3 and P(B) = 0.5, then P(A ∩ B)
=
a. 0.30.
b. 0.15.
c. 0.00.
d. 0.20.

39. If A and B are mutually exclusive events with P(A) = 0.3 and P(B) = 0.5, then P(A ∪ B) =
a. 0.00.
b. 0.15.
c. 0.80.
d. 0.20.

40. Of the last 100 customers entering a computer shop, 25 have purchased a computer. If the
classical method for computing probability is used, the probability that the next customer
will purchase a computer is
a. 0.25.
b. 0.50.
c. 1.00.
d. 0.75.

41. Events A and B are mutually exclusive with P(C) = 0.3 and P(B) = 0.2. Then, P(Bc) =
a. 0.06.
b. 0.50.
c. 0.70.
d. 0.80.

42. An experiment consists of four outcomes with P(E1) = 0.2, P(E2) = 0.3, and P(E3) = 0.4.
The probability of outcome E4 is
a. 0.500.
b. 0.024.
c. 0.100.
d. 0.900.

43. Events A and B are mutually exclusive. Which of the following statements is also true?
a. A and B are also independent.
b. P(A ∪ B) = P(A)P(B)
c. P(A ∪ B) = P(A) + P(B)
d. P(A ∩ B) = P(A) + P(B)

44. A six-sided die is tossed 3 times. The probability of observing three ones in a row is
a. 1/6.
b. 3/6.
c. 1/27.
 d. 1/216.

45. The probability of the occurrence of event A in an experiment is 1/3. If the experiment is
performed 2 times and event A did not occur, then on the third trial event A
a. must occur.
b. may occur.
c. could not occur.
d. has a 2/3 probability of occurring.

46. If A and B are independent events with P(A) = 0.4 and P(B) = 0.25, then P(A ∪ B) =
a. 0.65.
b. 0.55.
c. 0.10.
d. 0.75.

47. If P(A) = 0.50, P(B) = 0.40 and P(A ∪ B) = 0.88, then P(B |A) =
48. If A and B are independent events with P(A) = 0.38 and P(B) = 0.55, then P(A | B) =
49. If X and Y are mutually exclusive events with P(A) = 0.295, P(B) = 0.32, then P(A | B) =
50. If A and B are independent events with P(A) = 0.35 and P(B) = 0.20, then, P(A ∪ B) =
51. If P(A) = 0.7, P(B) = 0.6, P(A ∩ B) = 0, then events A and B are
52. If P(A) = 0.45, P(B) = 0.55, and P(A ∪ B) = 0.78, then P(A | B) =
53. If P(A) = 0.48, P(A ∪ B) = 0.82, and P(B) = 0.54, then P(A ∩ B) =
54. Assume you have applied for two jobs A and B. The probability that you get an offer for
job A is 0.23. The probability of being offered job B is 0.19. The probability of getting at
least one of the jobs is 0.38.

a. What is the probability that you will be offered both jobs?

b. Are events A and B mutually exclusive? Why or why not? Explain.

55. Assume you have applied for two scholarships, a Merit scholarship (M) and an Athletic
scholarship (A). The probability that you receive an Athletic scholarship is 0.18. The
probability of receiving both scholarships is 0.11. The probability of getting at least one
of the scholarships is 0.3.
a. What is the probability that you will receive a Merit scholarship?
b. Are events A and M mutually exclusive? Why or why not? Explain.
c. Are the two events A and M independent? Explain using probabilities.
What is the probability of receiving the Athletic scholarship given that you have been awarded
d.
the Merit scholarship?
What is the probability of receiving the Merit scholarship given that you have been awarded
e.
the Athletic scholarship?

56. A survey of a sample of business students resulted in the following information regarding
the genders of the individuals and their selected major.

Selected Major
Gender Management Marketing Others Total
Male 40 10 30 80
Female 30 20 70 120
Total 70 30 100 200

a. What is the probability of selecting an individual who is majoring in Marketing?

 What is the probability of selecting an individual who is majoring in Management, given that
b.
the person is female?
c. Given that a person is male, what is the probability that he is majoring in Management?
d. What is the probability of selecting a male individual?

57. Sixty percent of the student body at UTC is from the state of Tennessee (T), 30% percent
are from other states (O), and the remainder are international students (I). Twenty percent
of students from Tennessee live in the dormitories, whereas, 50% of students from other
states live in the dormitories. Finally, 80% of the international students live in the
dormitories.

a. What percentage of UTC students live in the dormitories?

Given that a student lives in the dormitory, what is the probability that she/he is an
b.
international student?
Given that a student lives in the dormitory, what is the probability that she/he is from
c.
Tennessee?

58. The probability of an economic decline in the year 2008 is 0.23. There is a probability of
0.64 that we will elect a republican president in the year 2008. If we elect a republican
president, there is a 0.35 probability of an economic decline. Let "D" represent the event
of an economic decline, and "R" represent the event of election of a Republican president.

a. Are "R" and "D" independent events?

b. What is the probability of a Republican president and economic decline in the year 2008?
If we experience an economic decline in the year 2008, what is the probability that there will a
c.
Republican president?
d. What is the probability of economic decline or a Republican president in the year 2008?

59. Six vitamin and three sugar tablets identical in appearance are in a box. One tablet is
taken at random and given to Person A. A tablet is then selected and given to Person B.
What is the probability that

a. Person A was given a vitamin tablet?

b. Person B was given a sugar tablet given that Person A was given a vitamin tablet?
c. neither was given vitamin tablets?
d. both were given vitamin tablets?
e. exactly one person was given a vitamin tablet?
f. Person A was given a sugar tablet and Person B was given a vitamin tablet?
g. Person A was given a vitamin tablet and Person B was given a sugar tablet?

60. The sales records of a real estate agency show the following sales over the past 200 days:

Number of Number
Houses Sold of Days
0 60
1 80
2 40
3 16
4 4
a. How many sample points are there?
b. Assign probabilities to the sample points and show their values.
c. What is the probability that the agency will not sell any houses in a given day?
d. What is the probability of selling at least 2 houses?
e. What is the probability of selling 1 or 2 houses?
f. What is the probability of selling less than 3 houses?