Question

1.

Let A denote the event that a particular stock outperforms the market and let B denote the event that the economy is experiencing rapid economic growth. Suppose that P(A) = 0.40, P(B) = 0.50 and P(A/B) is 0.20. Therefore, the two events A and B are probabilistically independent.

True

False

2.

A manager estimates that demand for their company's product will increase within the next 2 quarters with probability 0.55. This is an example of a

	a.	objective probability
	b.	subjective probability
	c.	complementary probability
	d.	joint probability

3.

The formal way to revise probabilities based on new information is to use:

	a.	common sense probabilities
	b.	unilateral probabilities
	c.	complementary probabilities
	d.	conditional probabilities

4.

Toby's Taco Truck is a food truck in a city in Texas. From past experience, they estimate that the probability that demand for their tacos will be high and that the weather will be good is 0.4, while the probability that demand will be high and the weather is bad is 0.15. The probability that demand will be low and the weather is good is 0.1, while the probability that demand is low and the weather is bad is 0.35. Calculate the probability that demand is low given that the weather is bad.

	a.	.30
	b.	.70
	c.	.15
	d.	.75

5.

The marketing department of a clothing retailer wants to collect data on consumer behavior with regard to online shopping to help inform their future marketing strategy. They selected a sample of 1000 households. Among the questions asked was “Do you enjoy shopping online for clothing?” Overall, 525 answered yes. 425 males were interviewed, and 200 males answered yes.

	a.	47.5%
	b.	52.5%
	c.	55%
	d.	65%

6.

The marketing department of a clothing retailer wants to collect data on consumer behavior with regard to online shopping to help inform their future marketing strategy. They selected a sample of 1000 households. Among the questions asked was “Do you enjoy shopping online for clothing?” Overall, 525 answered yes. 425 males were interviewed, and 200 males answered yes.

What is the probability that a respondent was male and answered no?

	a.	56%
	b.	22.5%
	c.	25%
	d.	47%

7.

The marketing department of a clothing retailer wants to collect data on consumer behavior with regard to online shopping to help inform their future marketing strategy. They selected a sample of 1000 households. Among the questions asked was “Do you enjoy shopping online for clothing?” Overall, 525 answered yes. 425 males were interviewed, and 200 males answered yes.

Given that the interviewed person is female, what is the probability that the person likes shopping for clothes?

a.	32.5%
	b.	35%
	c.	64%
	d.	57%

8.

A small grocery store is considering installing an express checkout line. Let X be the number of customers in the regular checkout line. Note that these numbers include the customers being served, if any. The probability distribution of X is given in the table below.

x	0	1	2	3
P(X=x)	0.10	0.45	0.25	0.20

Find the probability that at least one customer is in the regular checkout line.

	a.	0.9
	b.	0.45
	c.	0.25
	d.	0.8

9.

Football teams toss a coin to see who will get their choice of kicking or receiving to begin a game. The probability that a given team will lose the toss three games in a row is 0.125.

True

False

10. The probability distribution of the weekly demand for copier paper (in hundreds of reams) used in a marketing agency is provided in the data file below.

Weekly copier paper demand
Demand	Probability
10	0.05
11	0.10
12	0.12
13	0.16
14	0.23
15	0.14
16	0.10
17	0.04
18	0.03
19	0.02
20	0.01

For budgeting purposes, the purchasing manager wants to get a better idea about how much copier paper is typically used in a week. What are the mean and standard deviation for this distribution?

	a.	The mean is equal to 15. The standard deviation is equal to 4.55.
	b.	The mean is equal to 15. The standard deviation is equal to 3.32.
	c.	The mean is equal to 13.84. The standard deviation is equal to 2.13.
	d.	The mean is equal to 13.81. The standard deviation is equal to 2.16.

Answer 1