Question 1

Using cumulated historical data to assign probabilities is called _______.

Select one:

a. subjective probability

b. classical probability

c. relative frequency  

d. elementary inference

Question 2

The joint probability of X and Y is also referred to as _______.

Select one:

a. the marginal probability of X and Y

b. the probability of X given Y

c. the intersection of X and Y  

d. the union of X and Y

Question 3

An outcome of an experiment is called _______.

Select one:

a. an event  

b. a probability

c. a priori elements

d. a complement

Question 4

Which of the following is not a method of assigning probabilities?

Select one:

a. Relative frequency.

b. Elementary inference.

c. Subjective probability.

d. Classical probability.

Question 5

The list of all elementary events for an experiment is called _______.

Select one:

a. the sample space  

b. the population space

c. the event union

d. the exhaustive list

Question 6

Assigning probabilities by dividing the number of ways that an event can occur by the total number of possible outcomes in an experiment is called _______.

Select one:

a. relative frequency

b. classical probability  

c. subjective probability

d. elementary inference

Question 7

Let A be the event that a student is enrolled in an accounting course, and let S be the event that a student is enrolled in a statistics course. It is known that 30% of all students are enrolled in an accounting course and 40% of all students are enrolled in statistics. Included in these numbers are 15% who are enrolled in both statistics and accounting. A student is randomly selected, what is the probability that the student is enrolled in either accounting or statistics or both?

Select one:

a. 0.15

b. 0.55  

c. 0.85

d. 0.70

Question 8

Let A be the event that a student is enrolled in an accounting course, and let S be the event that a student is enrolled in a statistics course. It is known that 30% of all students are enrolled in an accounting course and 40% of all students are enrolled in statistics. Included in these numbers are 15% who are enrolled in both statistics and accounting. Find P(S).

Select one:

a. 0.15  

b. 0.30

c. 0.40

d. 0.55

Question 9

Suzanne purchased a new computer for each of her 6 staff employees. Upon their arrival, the new computers were randomly assigned to the staff members. One of the new computers was defective. The probability that Bill's new computer is defective is 1/6. This is an example of assigning probabilities by the ___________ method.

Select one:

a. classical probability

b. empirical probability

c. subjective probability

d. relative frequency

Question 10

Meagan Davies manages a portfolio of 200 common stocks. Her staff classified the portfolio stocks b y 'industry sector' and 'investment objective'.

If a stock is selected randomly from Meagan's portfolio, P(Healthcare  Electronics) = __________.

Select one:

a. 0.60

b. 0.85

c. 0.25

d. 0.75

Question 11

Mark Sims is exploring the characteristics of stock market investors. He found that sixty per cent of all investors have a net worth exceeding $1,000,000; 20% of all investors use an online brokerage; and 10% of all investors a have net worth exceeding $1,000,000 and use an online brokerage. An investor is selected randomly, and E is the event 'net worth exceeds $1,000,000', and O is the event 'uses an online brokerage'. P(EO) = _____________.

Select one:

a. 0.60  

b. 0.17

c. 0.10

d. 0.20

Question 12

Consider the following sample space, S, and several events defined on it. S = {Albert, Betty, Adam, Jack, Patty, Meagan}, and the events are: F = {Betty, Patty, Meagan}, H = {Adam, Meagan}, and P = {Betty, Adam}. F ∩ H is ___________.

Select one:

a. empty, since F and H are complements

b. empty, since F and H are independent

c. {Meagan}  

d. {Betty, Patty, Adam, Meagan}

Question 13

Adam Shapiro, Director of Human Resources, is exploring employee absenteeism at Plain Power Plant. 10% of all plant employees' work in the finishing department; 20% of all plant employees are absent excessively; and 7% of all plant employees work in the finishing department and are absent excessively. A plant employee is selected randomly; F is the event 'works in the finishing department'; and A is the event 'is absent excessively'. P(F|A) = _____________.

Select one:

a. 0.37

b. 0.70

c. 0.35

d. 0.13

Question 14

Consider the following sample space, S, and several events defined on it. S = {Albert, Betty, Adam, Jack, Patty, Meagan}, and the events are: F = {Betty, Patty, Meagan},    H = {Adam, Meagan}, and P = {Betty, Adam}. The complement of F is ___________.

Select one:

a. {Albert, Betty, Jack, Patty}

b. {Albert, Adam, Jack}  

c. {Betty, Patty, Meagan}

d. {Betty, Adam}

Question 15

Given P(A) = 0.25, P(B) = 0.40, P(A  B) = 0.10. Find P(A  B).

Select one:

a. 0.65

b. 0.45

c. 0.55

d. 0.75

Question 16

If the occurrence of one event does not affect the occurrence of another event, then the two events are _______.

Select one:

a. mutually exclusive

b. elementary events

c. independent  

d. complements

Question 17

Mark Sims is exploring the characteristics of stock market investors. He found that sixty per cent of all investors have a net worth exceeding $1,000,000; 20% of all investors use an online brokerage; and 10% of all investors a have net worth exceeding $1,000,000 and use an online brokerage. An investor is selected randomly, and E is the event 'net worth exceeds $1,000,000', and O is the event 'uses an online brokerage'. P(O|E) = _____________.

Select one:

a. 0.70  

b. 0.80

c. 0.50

d. 0.17

Question 18

A used-car dealer wishes to investigate the relation between the gender of the buyer and type of vehicle purchased. The following joint probability table was developed from the dealer's records for the previous year.

P(Female4WD) = _____________.

Select one:

a. 0.30  

b. 0.10

c. 0.12

d. 0.40

Question 19

Meagan Davies manages a portfolio of 200 common stocks. Her staff classified the portfolio stocks by 'industry sector' and 'investment objective'.

Are 'Healthcare' and 'Income' independent, why or why not?

Select one:

a. Yes, because P(Income ∩ Healthcare) ≠ 0

b. No, because P(Income ∩ Healthcare) = P(Healthcare) P(Income)    

c. No, because P(Healthcare) ≠ P(Income)

d. Yes, because P(Healthcare | Income) = P(Healthcare)  

Question 20

Belinda Boyd is reviewing a newly proposed advertising campaign. Based on her 15 years' experience, she believes the campaign has a 75% chance of significantly increasing brand name recognition of the product. This is an example of assigning probabilities by the________________ method.

Select one:

a. subjective probability  

b. relative frequency

c. a priori probability

d. classical probability