Question

13. The following chart shows the probability of time it will take to finish a project and the amount of profit expected if the project is completed in that time. What is the expected value of the profit from this project?

Project length	profit	Probability
<30 days	100,000	0.3
30 to 45 days	75,000	0.2
> 45 days	60,000	0.5

1. 78,667
2. 82,750
3. 65,000
4. 75,000

14. A person making calls to sell insurance has a 0.15 probability of success. If that person makes 15 calls in a day, what is the probability they will have at least 4 successful calls? Assume binomial variable.
    1. 0.4701
    2. 0.2428
    3. 0.1773
    4. 0.1821

15. Use the information below for this problem.
    When a customer places an order with Jerry’s On-Line Office Supplies, a computerized accounting information system (AIS) automatically checks to see if the customer has exceeded his or her credit limit. Past records indicate that the probability of customers exceeding their credit limit is 0.05. Assume that the number of customers that the AIS detects as having exceeded their credit limit is distributed a binomial variable.
    
    Suppose that, on a given day, 25 customers place orders. What is the probability that two or more customers will exceed their credit limits?
    1. 0.6415
    2. 0.0755
    3. 0.3576
    4. 0.9245

16. Use the information below to answer this problem and the next two problems.
    The quality control manager of Josh’s Cookies is inspecting a batch of chocolate-chip cookies that has just been baked. If the production process is in control, the mean number of chocolate chip parts per cookie is 6.0. Assume Poisson distribution applies.
    
    What is the probability that in any particular cookie being inspected fewer than four chocolate-chip parts will be found?
    1. 0.1512
    2. 0.4457
    3. 0.1606
    4. 0.3588

17. Use information provided for Josh’s Cookies. What is the probability that in any particular cookie being inspected exactly four chocolate-chip parts will be found?
    1. 0.7339
    2. 0.1606
    3. 0.1339
    4. 0.4457

Answer 1