Business Statistics Midterm Example
(Pro-MBA Program) True/False Questions (3 points for each) 1. A population is a subset of measurements taken from a large group. FALSE 2. The mean, median, and the mode will all be equal when the distribution is symmetric. TRUE 3. The number of cars that go through the drive-in window at a local bank each hour is an example of a continuous random variable. FALSE 4. In a binomial experiment with n = 50 trials, and the probability of success on each trial equal to 0.2, the expected value of the random variable is 40. FALSE 5. The distribution used to describe the number of times a particular event occurs in a certain time interval is the Poisson. TRUE 6. The probability that a continuous random variable takes on any particular value is always zero. TRUE 7. The binominal assumes that the outcome of each trial is classified into two mutually exclusive categories. TRUE 8. The notation Z ~ N(0, 1) indicates a standard normal distribution. TRUE 9. Probability of a continuous random variable can be described by their probability density function. TRUE 10. All normal distributions can be described by their mean and variance. TRUE Multiple Choice Questions (4 points for each) 1. Which is not a measure of dispersion? A. Mean absolute deviation (MAD) B. Standard deviation (ANS) C
D. Interquartile range.
2. Which is not a characteristic of the standard deviation? A. It is always the square root of the variance. B. It is not applicable when data are continuous. C. It can be calculated even when the data contain negative or zero values. D. Its physical interpretation is not as easy as the MAD. (ANS) B 3. . If samples are from a normal distribution with = 100 and = 10 we expect A. about 68 percent of the data within 90 to 110. B. almost all the data within 70 to 130. C. about 95 percent of the data within 80 to 120. D. all of the above. (ANS) D 4. A die is rolled. If it rolls to 1, 2 you win $3. If it rolls to a 3, 4,...