# MS1023 Business Statistics with Computer Applications Homework #1 MCQs

Question

MS1023 Business Statistics with Computer Applications Homework #1

1. Sue Taylor, Director of Global Industrial

Sales, is concerned by a deteriorating sales

trend. Specifically, the number of industrial

customers is stable at 1,500, but they are

purchasing less each year. She orders her

staff to search for causes of the downward

trend by surveying all 1,500 industrial

customers. For this study, the set of 1,500

industrial customers is ______________.

a) a parameter

b) a sample

c) the population

d) a statistic

e) the frame

2. Sue Taylor, Director of Global Industrial

Sales, is concerned by a deteriorating sales

trend. Specifically, the number of industrial

customers is stable at 1,500, but they are

purchasing less each year. She orders her

staff to search for causes of the downward

trend by selecting a focus group of 40

industrial customers. For this study, the set

of 40 industrial customers is ________.

a) a parameter

b) a sample

c) the population

d) a statistic

e) the frame

3. Sue Taylor, Director of Global Industrial

Sales, is concerned by a deteriorating sales

trend. Specifically, the number of customers

is stable at 1,500, but they are purchasing

less each year. She orders her staff to

search for causes of the downward trend by

surveying all 1,500 industrial customers.

Sue is ordering a __________.

a) statistic from the industrial customers

b) census of the industrial customers

c) sample of the industrial customers

d) sorting of the industrial customers

e) parameter of the industrial customers

4. Sue Taylor, Director of Global Industrial

Sales, is concerned by a deteriorating sales

trend. Specifically, the number of customers

is stable at 1,500, but they are purchasing

less each year.

She orders her staff to search for causes of

the downward trend by surveying all 1,500

industrial customers. One question on the

survey asked the customers: “Which of the

following best describes your primary

business: a. manufacturing, b. wholesaler,

c. retail, d. service.” The measurement

level for this question is

_________________.

a) interval level

b) ordinal level

c) nominal level

d) ratio level

e) relative level

5. Which scale of measurement has these

two properties: linear distance is meaningful

and the location of origin (or zero point) is

arbitrary?

a) Interval level

b) Ordinal level

c) Nominal level

d) Ratio level

e) Minimal level

6. Which scale of measurement has these

two properties: linear distance is

meaningful and the location of origin (or

zero point) is absolute (or natural)?

a) Interval level

b) Ordinal level

c) Nominal level

d) Ratio level

e) Relative level

7. Which of the following operations is

meaningful for processing nominal data?

a) Addition

b) Multiplication

c) Ranking

d) Counting

e) Division

MS1023 Business Statistics with Computer Applications Homework #1

8. Which of the following operations is

meaningful for processing ordinal data, but

is meaningless for processing nominal

data?

a) Addition

b) Multiplication

c) Ranking

d) Counting

e) Division

9. The social security number of employees

would be an example of what level of data

measurement?

a) Interval level data

b) Ordinal level data

c) Nominal level data

d) Ratio level data

e) Relative level data

10. Sales of a restaurant (in dollars) are an

example of what level of data

measurement?

a) Interval level data

b) Ordinal level data

c) Nominal level data

d) Ratio level data

e) Relative level data

11. A market researcher is interested in

determining the average income for families

in Bexar County, San Antonio. To

accomplish this, she takes a random

sample of 400 families from the county and

uses the data gathered from them to

estimate the average income for families of

the entire county. This process is an

example of _______.

a) nonparametric statistics

b) nominal data

c) descriptive statistics

d) inferential statistics

e) census

12. The Magnolia Swimming Pool Company

wants to determine the average number of

years it takes before a major repair is

required on one of the pools that the

company constructs. The president of the

company asks Rick Johnson, a company

accountant, to randomly contact fifty

families that built Magnolia pools in the past

ten years and determine how long it was in

each case until a major repair. The

information will then be used to estimate the

average number of years until a major

repair for all pools sold by Magnolia. The

average based on the data gathered from

the fifty families can best be described as a

_______.

a) parameter

b) sample

c) population

d) statistic

e) frame

13. What proportion of San Diego’s

registered voters favor trade restrictions

with China? In an effort to determine this, a

research team calls every registered voter

in San Diego and contacts them. The

proportion determined from the data

gathered is a _______.

a) parameter

b) sample

c) population

d) statistic

e) frame

14. Jessica Salas, president of Salas

Products, is reviewing the warranty policy

for her company’s new model of automobile

batteries. Life tests performed on a sample

of 100 batteries indicated: (1) an average

life of 75 months, (2) a standard deviation of

5 months, and (3) a bell shaped battery life

distribution. Approximately 68% of the

batteries will last between

________________.

a) 70 and 80 months

b) 60 and 90 months

c) 65 and 85 months

d) 55 and 95 months

e) 60 and 100 months

MS1023 Business Statistics with Computer Applications Homework #1

15. Jessica Salas, president of Salas

Products, is reviewing the warranty policy

for her company’s new model of automobile

batteries. Life tests performed on a sample

of 100 batteries indicated: (1) an average

life of 75 months, (2) a standard deviation of

5 months, and (3) a bell shaped battery life

distribution. Approximately 95% of the

batteries will last between

________________.

a) 70 and 80 months

b) 60 and 90 months

c) 65 and 85 months

d) 55 and 95 months

e) 60 and 100 months

16. Jessica Salas, president of Salas

Products, is reviewing the warranty policy

for her company’s new model of automobile

batteries. Life tests performed on a sample

of 100 batteries indicated: (1) an average

life of 75 months, (2) a standard deviation of

5 months, and (3) a bell shaped battery life

distribution. Approximately 99.7% of the

batteries will last between

________________.

a) 70 and 80 months

b) 60 and 90 months

c) 65 and 85 months

d) 55 and 95 months

e) 50 and 100 months

17. Jessica Salas, president of Salas

Products, is reviewing the warranty policy

for her company’s new model of automobile

batteries. Life tests performed on a sample

of 100 batteries indicated: (1) an average

life of 75 months, (2) a standard deviation of

5 months, and (3) a bell shaped battery life

distribution. What percentage of the

batteries will fail within the first 65 months of

use?

a) 0.5%

b) 1%

c) 2.5%

d) 5%

e) 7.5%

18. An instructor is evaluating the

performance of students on a test. He

records the number of points that each

student missed and created a frequency

distribution. This is provided below:

Points missed Number of students

0-under 10 2

10-under 20 4

20-under 30 10

30-under 40 8

40-under 50 6

What is the mean number of points missed?

a) 20

b) 25

c) 29

d) 30

e) 35

19. An instructor is evaluating the

performance of students on a test. He

records the number of points that each

student missed and created a frequency

distribution. This is provided below:

Points missed Number of students

0-under 10 2

10-under 20 4

20-under 30 10

30-under 40 8

40-under 50 6

What is the standard deviation for this

population?

a) 11.43

b) 14.14

c) 12.63

d) 13.17

e) 16.90

MS1023 Business Statistics with Computer Applications Homework #1

20. An instructor is evaluating the

performance of students on a test. He

records the number of points that each

student missed and created a frequency

distribution. This is provided below:

Points missed Number of students

0-under 10 2

10-under 20 4

20-under 30 10

30-under 40 8

40-under 50 6

What is the variance for this population?

a) 11.43

b) 135.17

c) 130.67

d) 180.67

e) 198.07

21. The following box and whisker plot was

constructed for the age of accounts

receivable.

The box and whisker plot reveals that the

accounts receivable ages are _______.

a) skewed to the left

b) skewed to the right

c) not skewed

d) normally distributed

e) symmetrical

22. A sample was taken of the salaries of

four employees from a large company. The

following are their salaries (in thousands of

dollars) for this year: 33, 40, 25, and 45.

The median of their salaries is

approximately

a) 36.5

b) 32.5

c) 40

d) 35.75

e) 25

23. A sample was taken of the salaries of

four employees from a large company. The

following are their salaries (in thousands of

dollars) for this year: 33, 40, 25, and 45. The

variance of their salaries is approximately

a) 56.69

b) 75.58

c) 227.75

d) 35.75

e) 8.7

24. Pinky Bauer, Chief Financial Officer of

Harrison Haulers, Inc., suspects

irregularities in the payroll system, and

orders an inspection of “each and every

payroll voucher issued since January 1,

1993.” Each payroll voucher was inspected

and the following frequency distribution was

compiled.

Errors per Voucher Number of Vouchers

0-under 2 500

2-under 4 400

4-under 6 300

6-under 8 200

8-under 10 100

The median number of errors per voucher is

__________.

a) 3.67

b) 5

c) 3.25

d) 400

e) 3

The number of phone calls arriving at a

switchboard each hour has been recorded,

and the following frequency distribution has

been developed.

Class Interval Frequency

20-under 40 30

40-under 60 45

60-under 80 80

80-under 100 45

Answer the questions 25-27 based on

above information.

MS1023 Business Statistics with Computer Applications Homework #1

25. What is the midpoint of the last class?

a) 80

b) 100

c) 95

d) 90

e) 85

26. What is the relative frequency of the

second class?

a) 0.455

b) 0.900

c) 0.225

d) 0.750

e) 0.725

27. What is the cumulative frequency of the

third class?

a) 80

b) 0.40

c) 155

d) 75

e) 105

Consider the following stem and leaf plot:

Stem Leaf

1 0, 2, 5, 7

2 2, 3, 4, 8

3 0, 4, 6, 6, 9

4 5, 8, 8, 9

5 2, 7, 8

Suppose that a frequency distribution was

developed from this, and there were 5

classes (10-under 20, 20-under 30, etc.).

Answer the questions 28-30 based on

above information.

28. What was the highest number in the

data set?

a) 50

b) 58

c) 59

d) 78

e) 98

29. What was the lowest number in the data

set?

a) 0

b) 10

c) 7

d) 2

e) 1

30. What is the cumulative frequency for the

30-under 40 class interval?

a) 5

b) 9

c) 13

d) 14

e) 18

31. A person has decided to construct a

frequency distribution for a set of data

containing 60 numbers. The lowest number

is 23 and the highest number is 68. If 7

classes are used, the class width should be

approximately _______.

a) 5

b) 7

c) 9

d) 11

e) 12

32. The following class intervals for a

frequency distribution were developed to

provide information regarding the starting

salaries for students graduating from a

particular school:

Salary Number of Graduates

($1,000s)

18-under 21 –

21-under 25 –

24-under 27 –

29-under 30 –

Before data was collected, someone

questioned the validity of this arrangement.

Which of the following represents a problem

with this set of intervals?

a) There are too many intervals.

b) The class widths are too small.

c) Some numbers between 18,000 and

30,000 would fall into two different

intervals.

d) The first and the second interval overlap.

e) There are too few intervals.

MS1023 Business Statistics with Computer Applications Homework #1

Each day, the office staff at Oasis Quick

Shop prepares a frequency distribution and

an ogive of sales transactions by dollar

value of the transactions. Saturday’s

cumulative frequency ogive follows.

Answer the questions 33-35 based on

above information.

33. The percentage of sales transactions on

Saturday that were under $100 each was

_____________.

a) 100

b) 10

c) 80

d) 20

e) 15

34. The percentage of sales transactions on

Saturday that were at least $100 each was

_____________.

a) 100

b) 10

c) 80

d) 20

e) 15

35. The percentage of sales transactions on

Saturday that were between $100 and $150

was _____________.

a) 20%

b) 40%

c) 60%

d) 80%

e) 10%

36. The following graphic of residential

housing data (selling price and size in

square feet) is a _____________.

a) scatter plot

b) Pareto chart

c) pie chart

d) cumulative histogram

e) cumulative frequency distribuion

37. The following graphic of residential

housing data (selling price and size in

square feet) indicates _____________.

a) an inverse relation between the two

variables

b) no relation between the two variables

c) a direct relation between the two

variables

d) a negative exponential relation between

the two variables

e) a non-linear relationship between the two

variables

70

80

90

100

110

120

130

1400 1600 1800 2000 2200 2400

Square Feet

Selling Price ($1,000)

70

80

90

100

110

120

130

1400 1600 1800 2000 2200 2400

Square Feet

Selling Price ($1,000)

MS1023 Business Statistics with Computer Applications Homework #1

38. The following graphic of cigarettes

smoked (sold) per capita (CIG) and deaths

per 100K population from lung cancer

(LUNG) indicates _________

10 15 20 25 30 35 40 45

28

26

24

22

20

18

16

14

12

10

CIG

LUNG

Scatterplot of LUNG vs CIG

a) a weak relation between the two

variables

b) a pretty strong relation between the two

variables

c) when the number of cigarettes smoked

(sold) per capita (CIG) increases the deaths

per 100K population from lung cancer

(LUNG) decreases

d) a negative relation between the two

variables

e) no relation between the two variables

39. Belinda Bose is reviewing a newly

proposed advertising campaign. Based on

her 15 years of 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 using the ________________

method.

a) subjective probability

b) relative frequency

c) classical probability

d) a priori probability

e) a posterior probability

40. Which of the following is not a legitimate

probability value?

a) 0.67

b) 15/16

c) 0.23

d) 4/3

e) 0.98

41. Which of the following is not a legitimate

probability value?

a) 0.67

b) 15/16

c) 0.23

d) 2/3

e) -0.28

42. The list of all elementary events for an

experiment is called _______.

a) the sample space

b) the exhaustive list

c) the population space

d) the event union

e) a frame

43. In a set of 15 aluminum castings, two

castings are defective (D), and the

remaining thirteen are good (G). A quality

control inspector randomly selects three of

the fifteen castings without replacement,

and classifies each as defective (D) or good

(G). The sample space for this experiment

contains ____________ elementary events.

a) 3,375

b) 2,730

c) 455

d) 15

e) 3

44. In a set of 10 aluminum castings, two

castings are defective (D), and the

remaining eight are good (G). A quality

control inspector randomly selects three of

the ten castings with replacement, and

classifies each as defective (D) or good (G).

The sample space for this experiment

contains __________ elementary events.

a) 1,000

b) 720

c) 100

d) 10

e) 3

MS1023 Business Statistics with Computer Applications Homework #1

Consider the following sample space, S,

and several events defined on it. S =

{Albert, Betty, Abel, Jack, Patty, Meagan},

and the events are: F = {Betty, Patty,

Meagan}, H = {Abel, Meagan}, and P =

{Betty, Abel}.

Answer questions 45-47 based on above

information.

45. F ? H is ___________.

a) {Meagan}

b) {Betty, Patty, Abel, Meagan}

c) empty, since F and H are complements

d) empty, since F and H are independent

e) empty, since F and H are mutually

exclusive

46. F ? H is ___________.

a) {Meagan}

b) {Betty, Abel, Patty, Meagan}

c) empty, since F and H are complements

d) empty, since F and H are independent

e) empty, since F and H are mutually

exclusive

47. The complement of F is ___________.

a) {Albert, Betty, Jack, Patty}

b) {Betty, Patty, Meagan}

c) {Albert, Abel, Jack}

d) {Betty, Abel}

e) {Meagan}

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.

Answer questions 48-51 based on above

information.

48. Find P(S).

a) 0.15

b) 0.30

c) 0.40

d) 0.55

e) 0.60

49. Find the probability that a student is in

accounting and is also in statistics.

a) 0.15

b) 0.70

c) 0.55

d) 0.12

e) 0.60

50. A student is randomly selected, and it is

found that the student is enrolled in

accounting. What is the probability that this

student is also enrolled in statistics?

a) 0.15

b) 0.75

c) 0.375

d) 0.50

e) 0.80

51. A student is randomly selected, what is

the probability that the student is enrolled in

either accounting or statistics or both?

a) 0.15

b) 0.85

c) 0.70

d) 0.55

e) 0.90

Abel Alonzo, Director of Human Resources,

is exploring employee absenteeism at the

Plano Power Plant. Ten percent 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.”

Answer the questions 52-54 based on

above information.

52. P(A ? F) = _____________.

a) 0.07

b) 0.10

MS1023 Business Statistics with Computer Applications Homework #1

c) 0.20

d) 0.23

e) 0.37

53. P(A|F) = _____________.

a) 0.37

b) 0.70

c) 0.13

d) 0.35

e) 0.80

54. P(F|A) = _____________.

a) 0.35

b) 0.70

c) 0.13

d) 0.37

e) 0.10

A market research firm is investigating the

appeal of three package designs. The table

below gives information obtained through a

sample of 200 consumers. The three

package designs are labeled A, B, and C.

The consumers are classified according to

age and package design preference.

A B C Total

Under 25 years 22 34 40 96

25 or older 54 28 22 104

Total 76 62 62 200

Answer the questions 55-58 based on

above information.

55. If one of these consumers is randomly

selected, what is the probability that the

person prefers design A?

a) 0.76

b) 0.38

c) 0.33

d) 0.22

e) 0.39

56. If one of these consumers is randomly

selected, what is the probability that the

person prefers design A and is under 25?

a) 0.22

b) 0.11

c) 0.18

d) 0.54

e) 0.78

57. If one of these consumers is randomly

selected and is under 25, what is the

probability that the person prefers design A?

a) 0.22

b) 0.23

c) 0.29

d) 0.18

e) 0.78

58. If one of these consumers is randomly

selected and prefers design B, what is the

probability that the person is 25 or older?

a) 0.28

b) 0.14

c) 0.45

d) 0.27

e) 0.78

59. Are “B” and “25 or older” independent

and why or why not?

a) No, because P (25 or over | B) ? P (B)

b) Yes, because P (B) = P(C)

c) No, because P (25 or older | B) ? P (25 or

older)

d) Yes, because P (25 or older ? B) ? 0

e) No, because age and package design

are different things

60. A market research firms conducts

studies regarding the success of new

products. The company is not always

perfect in predicting the success. Suppose

that there is a 50% chance that any new

product would be successful (and a 50%

chance that it would fail). In the past, for all

new products that ultimately were

successful, 80% were predicted to be

successful (and the other 20% were

inaccurately predicted to be failures). Also,

for all new products that were ultimately

failures, 70% were predicted to be failures

(and the other 30% were inaccurately

predicted to be successes). For any

randomly selected new product, what is the

MS1023 Business Statistics with Computer Applications Homework #1

probability that the market research firm

would predict that it would be a success?

a) 0.80

b) 0.50

c) 0.45

d) 0.55

e) 0.95

Everyone is familiar with waiting lines or

queues. For example, people wait in line at a

supermarket to go through the checkout

counter. There are two factors that determine

how long the queue becomes. One is the

speed of service. The other is the number of

arrivals at the checkout counter. The mean

number of arrivals is an important summary

statistic, but so is the standard deviation. A

consultant working for the supermarket

counted the number of arrivals (shown

below) per hour during a sample of 30 hours.

106 99 109 130 105

97 115 75 84 95

103 111 102 72 98

132 106 94 71 93

91 84 94 88 101

89 101 90 107 98

Answer the questions 61-63 based on

above information.

61. The mean is ___________.

a) 2,940

b) 30

c) 98

d) 13.86

e) 14.098

62. The standard deviation is ___________.

a) 14.098

b) 13.86

c) 192.13

d) 2,940

e) 198.76

63. Assuming data is normally distributed

(i.e. histogram is bell shaped) and given the

mean and standard deviation calculated,

usually what range of number of arrivals do

you expect for this supermarket?

(Remember “usually” means 95% of the

time).

a) 84 to 112

b) 70 to 126

c) 56 to 140

d) 71 to 132

e) 70 to 162

The following sets of sample data represent

the distribution of house prices in two

counties.

Price Range ($000s) No. of

houses in

Barsetshire

sample

No. of

houses in

Cokeshire

sample

65 but under 70 2 4

70 but under 75 5 11

75 but under 80 12 19

80 but under 90 20 15

90 but under 110 14 6

110 but under 140 6 4

140 but under 200 1 1

Answer the questions 64-69 based on

above information.

64. The average house price ($000s) in

Barsetshire is ___________.

a) 92.790

b) 97.092

c) 99.702

d) 90.792

e) 84.750

65. The average house price ($000s) in

Cokeshire is ___________.

a) 84.750

b) 90.792

c) 84.570

d) 84.507

e) 85.470

MS1023 Business Statistics with Computer Applications Homework #1

66. The standard deviation for house prices

($000s) in Barsetshire is ___________.

a) 18.426

b) 18.272

c) 18.246

d) 18.227

e) 18.642

67. The standard deviation for house prices

($000s) in Cokeshire is ___________.

a) 17.788

b) 17.938

c) 18.426

d) 18.272

e) 17.878

68. Which of the following statements is

true?

a) House prices are higher in Cokeshire

b) House prices are lower in Barsetshire

c) House prices vary more in Barsetshire

d) House prices are the same in both

e) None of the above

69. Are summary statistics such as mean

and standard deviation appropriate

measures for this data set? Why or why

not?

a) No, there are too many intervals.

b) Yes, the class widths are all the same.

c) No, the class intervals are not the same

d) No, there are too few intervals.

e) Yes, data are distributed evenly.

Demand for consumer goods is necessarily

variable. Forecasting the demand for

consumer goods is an important business

activity, as all businesses have to plan

ahead. Manufacturer of consumer goods

has been studying the demand for one of

their products and the level of demand is

given in the following stem and leaf plot,

where stem unit is 100 and leaf unit is 10.

STEM LEAF

1 1 2 3 4.5 5 6 7 7 9 9.5

2 0 0 0 0 0 0 0 0 1 1 2 4 5 7 9

3 0 0 0 2 8

4

5 0

6

7

8 0

9

10

11

12 0

Answer the questions 70-79 based on

above information.

70. The mean is _____________.

a) 270.61

b) 27.61

c) 2700.61

d) 2.7061

e) 260.71

71. The standard deviation is __________.

a) 207.974

b) 206.591

c) 209.794

d) 204.977

e) 205.691

72. The median is _____________.

a) 200 and 300

b) 300

c) 210 and 300

d) 200

e) 200 and 210

73. The lower quartile is _________.

a) 110

b) 115

c) 180

d) 200

e) 295

MS1023 Business Statistics with Computer Applications Homework #1

74. The upper quartile is _________.

a) 110

b) 115

c) 180

d) 200

e) 295

75. The inter quartile range is _________.

a) 115

b) 110

c) 95

d) 20

e) 1090

76. The inner fences are ___________.

a) 7.5 to 640

b) -165 to 467.5

c) 467.5 to 640

d) 7.5 to 467.5

e) 110 to 1200

77. The outer fences are ___________.

a) 7.5 to 640

b) -165 to 467.5

c) 467.5 to 640

d) 7.5 to 467.5

e) -165 to 640

78. The mild outliers are ___________.

a) 500 only

b) 380 & 500

c) 500; 800 and 1200

d) 800 and 1200

e) No mild outliers

79. The serious outliers are ___________.

a) 500 only

b) 380 & 500

c) 500; 800 and 1200

d) 800 and 1200

e) No serious outliers

80. A company’s customer service 800

telephone system is set up so that the caller

has six options. Each of these six options

leads to a menu with four options. For each

of these four options, three more options

are available. For each of these three

options, another three options are

presented. If a person calls the 800 number

for assistance, how many total options are

possible?

a) 6

b) 24

c) 72

d) 216

e) 480

A survey conducted by the Northwestern

University Lindquist-Endicott Report asked

320 companies about the procedures they

use in hiring. Only 54% of the responding

companies review the applicant’s college

transcript as part of the hiring process, and

only 44% consider faculty references.

Assume that these percentages are true for

the population of companies in the United

States and that 35% of all companies use

both the applicant’s college transcript and

faculty references.

Answer the questions 81-83 based on

above information.

81. What is the probability that a randomly

selected company uses either faculty

references or college transcript as part of

the hiring process?

a) 0.44

b) 0.54

c) 0.63

d) 0.37

e) 0.35

82. What is the probability that a randomly

selected company uses either faculty

references or college transcript but not both

as part of the hiring process?

a) 0.09

b) 0.19

c) 0.63

d) 0.35

e) 0.28

MS1023 Business Statistics with Computer Applications Homework #1

83. What is the probability that a randomly

selected company uses neither faculty

references nor college transcript as part of

the hiring process?

a) 0.37

b) 0.35

c) 0.63

d) 0.28

e) 0.19

According to the Consumer Electronics

Manufacturers Association, 10% of all U.S.

households have a fax machine and 52%

have a personal computer. Suppose 91% of

all U.S. households having a fax machine

have a personal computer. A U.S.

household is randomly selected.

Answer the questions 84-88 based on

above information.

84. What is the probability that the

household has a fax machine and a

personal computer?

a) 0.091

b) 0.009

c) 0.10

d) 0.91

e) 0.62

85. What is the probability that the

household has a fax machine or a personal

computer?

a) 0.52

b) 0.10

c) 0.529

d) 0.091

e) 0.429

86. What is the probability that the

household has a fax machine and does not

have a personal computer?

a) 0.009

b) 0.471

c) 0.48

d) 0.10

e) 0.58

87. What is the probability that the

household has neither a fax machine nor a

personal computer?

a) 0.471

b) 0.009

c) 0.429

d) 0.091

e) 0.52

88. What is the probability that the

household does not have a fax machine and

does have a personal computer?

a) 0.471

b) 0.009

c) 0.429

d) 0.091

e) 0.52

In a recent year, business failures in the

United States numbered 83,384, according

to Dun & Bradstreet. The construction

industry accounted for 10,867 of these

business failures. The South Atlantic states

accounted for 8,010 of the business failures.

Suppose that 1,258 of all business failures

were construction businesses located in the

South Atlantic states. A failed business is

randomly selected from this list of business

failures.

Answer the questions 89-94 based on

above information.

89. What is the probability that the business

is located in the South Atlantic states?

a) 0.13032

b) 0.21130

c) 0.09606

d) 0.01509

e) 0.90606

MS1023 Business Statistics with Computer Applications Homework #1

90. What is the probability that the business

is in the construction industry or located in

the South Atlantic states?

a) 0.13032

b) 0.21130

c) 0.09606

d) 0.01509

e) 0.90606

91. What is the probability that the business

is in the construction industry if it is known

that the business is located in the South

Atlantic states?

a) 0.13032

b) 0.21130

c) 0.09606

d) 0.01509

e) 0.15705

92. What is the probability that the business

is located in the South Atlantic states if it is

known that the business is a construction

business?

a) 0.11576

b) 0.21132

c) 0.13032

d) 0.01509

e) 0.90606

93. What is the probability that the business

is not located in the South Atlantic states if it

is known that the business is not a

construction business?

a) 0.21132

b) 0.86968

c) 0.0961

d) 0.0151

e) 0.9069

94. Given that the business is a construction

business, what is the probability that the

business is not located in the South Atlantic

states?

a) 0.13032

b) 0.86968

c) 0.8842

d) 0.0151

e) 0.9069

In a certain city, 30% of the families have a

MasterCard, 20% have an American

Express card, and 25% have a Visa card.

Eight percent of the families have both a

MasterCard and an American Express card.

Twelve percent have both a Visa card and a

MasterCard. Six percent have both an

American Express card and a Visa card.

Answer the questions 84-88 based on

above information.

95. What is the probability of selecting a

family that has either a Visa card or an

American Express card?

a) 0.25

b) 0.20

c) 0.39

d) 0.37

e) 0.33

96. What is the probability of selecting a

family that has either a Visa card or a

MasterCard?

a) 0.25

b) 0.30

c) 0.55

d) 0.43

e) 0.12

97. If a family has a MasterCard, what is the

probability that it has a Visa card?

a) 0.40

b) 0.12

c) 0.30

d) 0.20

e) 0.48

MS1023 Business Statistics with Computer Applications Homework #1

98. If a family has a Visa card, what is the

probability that it has a MasterCard?

a) 0.25

b) 0.12

c) 0.39

d) 0.48

e) 0.40

99. Is possession of a Visa card

independent of possession of a

MasterCard? Why or why not?

a) No, because P (M | V) ? P (V)

b) Yes, because P (M) = P(V)

c) No, because P (V | M) ? P (V)

d) Yes, because P (V ? M) ? 0

e) No, because Visa and MasterCard are

different things

100. Is possession of an American Express

card mutually exclusive of possession of a

Visa card? Why or why not?

a) No, because P (A ? V) ? .0000

b) Yes, because P (A ? V) = .0000

c) No, because P (A ? V) ? P (V)

d) Yes, because P (V ? A) ? P (A)

e) No, because American Express and Visa

card are different things

**30 %**discount on an order above

**$ 5**

Use the following coupon code:

CHRISTMAS