CHAPTER FIVE Discrete Distributions C 1. E Term B E Term Variables which take on values only at certain points over a given interval are called _______. A. B. C. D. 2. point variables continuous random variables discrete random variables value variables A variable that can take on values at any point over a given interval is called _______. A. B. C. D. a point variable a continuous random variable a discrete random variable a value variable 141 142 Test Bank A 3. E Term D A. B. C. D. 4. E Term B 5. E Term A E Term a discrete random variable a continuous random variable the binomial distribution the normal distribution The volume of liquid in an unopened 1-gallon can of paint is an example of _________. A. B. C. D. 7. the normal distribution the binomial distribution a discrete random variable a continuous random variable The volume of liquid in an unopened 12-ounce bottle of beer is an example of _________. A. B. C. D. 6. a discrete random variable a continuous random variable the binomial distribution the normal distribution The amount of time a patient waits in a doctor's office is an example of _________. A. B. C. D. E Term C The number of automobiles sold by a dealership in a day is an example of _______. the binomial distribution the normal distribution a continuous random variable a discrete random variable The number of defective parts in a lot of 25 parts is an example of _______. A. B. C. D. a discrete random variable a continuous random variable the Poisson distribution the normal distribution Chapter 5: Discrete Distributions B 8. E BCalc D You are offered an investment opportunity. Its outcomes and probabilities are presented in the following table. P( X ) X -$1,000 .40 $0 .20 +$1,000 .40 The mean of this distribution is _____________. A. B. C. D. 9. -$400 $0 $200 $400 You are offered an investment opportunity. Its outcomes and probabilities are presented in the following table. P( X ) X -$1,000 .40 $0 .20 +$1,000 .40 The standard deviation of this distribution is _____________. M BCalc A. B. C. D. C You are offered an investment opportunity. Its outcomes and probabilities are presented in the following table. P( X ) X -$1,000 .40 $0 .20 +$1,000 .40 Which of the following statements is true? 10. E BApp A. B. C. D. -$400 $663 $800,000 $894 This distribution is skewed to the right. This is a binomial distribution. This distribution is symmetric. This distribution is skewed to the left. 143 144 Test Bank C 11. You are offered an investment opportunity. Its outcomes and probabilities are presented in the following table. P( X ) X -$1,000 .10 $0 .20 +$1,000 .70 The mean of this distribution is _____________. E BCalc A. B. C. D. B You are offered an investment opportunity. Its outcomes and probabilities are presented in the following table. P( X ) X -$1,000 .10 $0 .20 +$1,000 .70 The standard deviation of this distribution is _____________. 12. -$100 $0 $600 $700 M BCalc A. B. C. D. D You are offered an investment opportunity. Its outcomes and probabilities are presented in the following table. P( X ) X -$1,000 .10 $0 .20 +$1,000 .70 Which of the following statements is true? 13. E BApp A. B. C. D. -$400 $663 $800,000 $894 This distribution is skewed to the right. This is a binomial distribution. This distribution is symmetric. This distribution is skewed to the left. Chapter 5: Discrete Distributions C 14. 145 A market research team compiled the following discrete probability distribution. In this distribution X represents the number of automobiles owned by a family residing in Starr County. X P(X) 0 0.10 1 0.10 2 0.50 3 0.30 The mean (average) value of X is _______________. E BCalc A. B. C. D. B A market research team compiled the following discrete probability distribution. In this distribution X represents the number of automobiles owned by a family residing in Starr County. X P(X) 0 0.10 1 0.10 2 0.50 3 0.30 The standard deviation of X is _______________. 15. M BCalc A. B. C. D. 1.0 1.5 2.0 2.5 0.80 0.89 1.00 2.00 146 Test Bank D 16. A market research team compiled the following discrete probability distribution. In this distribution X represents the number of automobiles owned by a family residing in Starr County. X P(X) 0 0.10 1 0.10 2 0.50 3 0.30 Which of the following statements is true? E BApp A. B. C. D. A A market research team compiled the following discrete probability distribution for families residing in Randolph County. In this distribution X represents the number of evenings the family dines outside their home during a week. X P(X) 0 0.30 1 0.50 2 0.10 3 0.10 The mean (average) value of X is _______________. 17. E BCalc A. B. C. D. This distribution is skewed to the right. This is a binomial distribution. This is a normal distribution. This distribution is skewed to the left. 1.0 1.5 2.0 2.5 Chapter 5: Discrete Distributions D 18. 147 A market research team compiled the following discrete probability distribution for families residing in Randolph County. In this distribution X represents the number of evenings the family dines outside their home during a week. X P(X) 0 0.30 1 0.50 2 0.10 3 0.10 The standard deviation of X is _______________. M BCalc A. B. C. D. A A market research team compiled the following discrete probability distribution for families residing in Randolph County. In this distribution X represents the number of evenings the family dines outside their home during a week. X P(X) 0 0.30 1 0.50 2 0.10 3 0.10 Which of the following statements is true? 19. E BApp A. B. C. D. 1.00 2.00 0.80 0.89 This distribution is skewed to the right. This distribution is skewed to the left. This is a binomial distribution. This is a normal distribution. 148 Test Bank D 20. The sales manager at Moss Point Metropolitan Motors compiled the following discrete probability distribution. In this distribution X represents the number of cars sold per day at her dealership. X P(X) 0 0.25 1 0.50 2 0.25 The mean (average) value of X is ______________. E BCalc A. B. C. D. A The sales manager at Moss Point Metropolitan Motors compiled the following discrete probability distribution. In this distribution X represents the number of cars sold per day at her dealership. X P(X) 0 0.25 1 0.50 2 0.25 The standard deviation of X is ______________. 21. 0.5 0 1.5 1.0 M BCalc A. B. C. D. C The sales manager at Moss Point Metropolitan Motors compiled the following discrete probability distribution. In this distribution X represents the number of cars sold per day at her dealership. X P(X) 0 0.25 1 0.50 2 0.25 Which of the following statements is true? 22. E BApp A. B. C. D. 0.71 0.50 3.0 1.0 This distribution is skewed to the right. This distribution is skewed to the left. This distribution is symmetric. This is a normal distribution. Chapter 5: Discrete Distributions C 23. A Bernoulli process has exactly __________ possible outcomes. E Term A. B. C. D. D If X is the number of successes in an independent series of 10 Bernoulli trials, then X has a ______________ distribution. 24. 8 4 2 1 M Term A. B. C. D. A If X has a binomial distribution with p < .5, then the distribution of X is ________. 25. hypergeometric Poisson normal binomial E Term A. B. C. D. C If X has a binomial distribution with p = .5, then the distribution of X is ________. 26. skewed to the right. skewed to the left. symmetric. a normal distribution. E Term A. B. C. D. B If X has a binomial distribution with p > .5, then the distribution of X is ________. 27. E Term A. B. C. D. skewed to the right. skewed to the left. symmetric. a normal distribution. skewed to the right. skewed to the left. symmetric. a normal distribution. 149 150 Test Bank A 28. The following graph is a binomial distribution with n = 6. This graph reveals that ____________. M App D A. B. C. D. 29. p > 0.5 p = 1.0 p=0 p < 0.5 The following graph is a binomial distribution with n = 6. This graph reveals that ____________. M App A. B. C. D. p > 0.5 p = 1.0 p=0 p < 0.5 Chapter 5: Discrete Distributions B 30. 151 The following graph is a binomial distribution with n = 6. This graph reveals that ____________. M App B A. B. C. D. 31. p = 0.5 p = 1.0 p=0 p < 0.5 Binomial probabilities may be calculated in Excel worksheets by using the _________ function. M Term A. B. C. D. A Hypergeometric probabilities may be calculated in Excel worksheets by using the _________ function. 32. =binprobabilty() =binomdist() =binomprob() =probbin() M Term A. B. C. D. D Poisson probabilities may be calculated in Excel worksheets by using the _________ function. 33. M Term A. B. C. D. =hypergeomdist() =hypergprobabilty() =hypergeoprob() =probhyper() =poissondist() =poissonprobabilty() =poissonprob() =poisson() 152 Test Bank B 34. E App A A. B. C. D. 35. E Calc C 36. M Calc 0.313 0.073 0.400 0.156 A student randomly guesses the answers to a five question true/false test. If there is a 50% chance of guessing correctly on each question, what is the probability that the student misses exactly 1 question? A. B. C. D. 37. using the normal distribution using the binomial distribution using the Poisson distribution using the exponential distribution A fair coin is tossed 5 times. What is the probability that exactly 2 heads are observed? A. B. C. D. M Calc D Twenty five items are sampled. Each of these has the same probability of being defective. The probability that exactly 2 of the 25 are defective could best be found by _______. 0.200 0.031 0.156 0.073 A student randomly guesses the answers to a five question true/false test. If there is a 50% chance of guessing correctly on each question, what is the probability that the student misses no questions? A. B. C. D. 0.000 0.200 0.500 0.031 Chapter 5: Discrete Distributions B 38. 153 Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects irregularities in the payroll system, and orders an inspection of a random sample of vouchers issued since January 1, 1993. A sample of ten vouchers is randomly selected, without replacement, from the population of 2,000 vouchers. Each voucher in the sample is examined for errors; and X is the number of sample vouchers with errors. If 20% of the population of vouchers contain errors, P(X=0) is _______________. E BCalc A. B. C. D. C Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects irregularities in the payroll system, and orders an inspection of a random sample of vouchers issued since January 1, 1993. A sample of ten vouchers is randomly selected, without replacement, from the population of 2,000 vouchers. Each voucher in the sample is examined for errors; and X is the number of sample vouchers with errors. If 20% of the population of vouchers contain errors, P(X>0) is _______________. 39. 0.8171 0.1074 0.8926 0.3020 M BCalc A. B. C. D. B Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects irregularities in the payroll system, and orders an inspection of a random sample of vouchers issued since January 1, 1993. A sample of ten vouchers is randomly selected, without replacement, from the population of 2,000 vouchers. Each voucher in the sample is examined for errors; and X is the number of sample vouchers with errors. If 20% of the population of vouchers contain errors, the mean value of X is _______________. 40. M BCalc A. B. C. D. 0.8171 0.1074 0.8926 0.3020 400 2 200 5 154 Test Bank A 41. Pinky Bauer, Chief Financial Officer of Harrison Haulers, Inc., suspects irregularities in the payroll system, and orders an inspection of a random sample of vouchers issued since January 1, 1993. A sample of ten vouchers is randomly selected, without replacement, from the population of 2,000 vouchers. Each voucher in the sample is examined for errors; and X is the number of sample vouchers with errors. If 20% of the population of vouchers contain errors, the standard deviation of X is __________. M BCalc A. B. C. D. C Dorothy Little purchased a mailing list of 2,000 names and addresses for her mail order business, but after scanning the list she doubts the authenticity of the list. She randomly selects five names from the list for validation. If 40% of the names on the list are not authentic, and X is the number of non-authentic names in her sample, P(X=0) is ______________. 42. 1.26 1.60 14.14 3.16 E BCalc A. B. C. D. A Dorothy Little purchased a mailing list of 2,000 names and addresses for her mail order business, but after scanning the list she doubts the authenticity of the list. She randomly selects five names from the list for validation. If 40% of the names on the list are not authentic, and X is the number of non-authentic names in her sample, P(X<2) is ______________. 43. M BCalc A. B. C. D. 0.8154 0.0467 0.0778 0.4000 0.4370 0.9853 0.9785 0.2333 Chapter 5: Discrete Distributions D 44. 155 Dorothy Little purchased a mailing list of 2,000 names and addresses for her mail order business, but after scanning the list she doubts the authenticity of the list. She randomly selects five names from the list for validation. If 40% of the names on the list are not authentic, and X is the number of non-authentic names in her sample, P(X>0) is ______________. M BCalc A. B. C. D. B Dorothy Little purchased a mailing list of 2,000 names and addresses for her mail order business, but after scanning the list she doubts the authenticity of the list. She randomly selects five names from the list for validation. If 40% of the names on the list are not authentic, and X is the number on non-authentic names in her sample, the expected (average) value of X is ______________. 45. 0.2172 0.9533 0.1846 0.9222 M BCalc A. B. C. D. B If X is a binomial random variable with n=8 and p=0.6, the mean value of X is _____. 46. M Calc D M Calc A. B. C. D. 47. 2.50 2.00 1.50 1.25 6 4.8 3.2 8 If X is a binomial random variable with n=8 and p=0.6, the standard deviation of X is _________. A. B. C. D. 4.8 3.2 1.92 1.39 156 Test Bank C 48. M Calc B A. B. C. D. 49. M Calc D 50. E Calc A M Calc 0.500 0.005 0.124 0.232 If X is a binomial random with n=8 and p=0.6, what is the probability that X is equal to 5? A. B. C. D. 52. 1.6 1.28 4 0.96 If X is a binomial random variable with n=8 and p=0.6, what is the probability that X is equal to 4? A. B. C. D. 51. 6 10 4 2.4 If X is a binomial random variable with n=8 and p=0.2, the variance of X is ________. A. B. C. D. E Calc B If X is a binomial random variable with n=10 and p=0.4, the mean of X is _________. 0.625 0.279 0.209 0.300 If X is a binomial random with n=8 and p=0.6, what is the probability that X is less than or equal to 2? A. B. C. D. 0.050 0.009 0.041 0.375 Chapter 5: Discrete Distributions C 53. M Calc B M Calc A 55. 56. M Calc B M Term 0.167 0.833 0.215 0.800 If X is a binomial random with n=10 and p=0.4, what is the probability that X is equal to 3? A. 0.215 B. 0.057 C. 0.300 D. 0.120 If X is a binomial random with n=10 and p=0.4, what is the probability that X is less than 2? A. B. C. D. 57. 0.124 0.991 0.950 0.011 If X is a binomial random with n=10 and p=0.4, what is the probability that X is greater than 2? A. B. C. D. E Calc B If X is a binomial random with n=8 and p=0.6, what is the probability that X is greater than 2? A. B. C. D. 54. 157 0.167 0.046 0.040 0.006 The Poisson distribution focuses on the number of discrete occurrences _______. A. B. C. D. in "n" trials over some interval or continuum in "n" trials where sampling is done without replacement in a Bernoulli trial 158 Test Bank C 58. The long-run average or mean of a Poisson distribution is usually referred to as _______. M Term A. B. C. D. A The variance of a Poisson distribution is equal to _______. 59. M Term A. B. /2 C. 2 D. D If lambda is 3 occurrences per five minute time interval, the probability of getting 5 occurrences over a five minute interval is _______. 60. M Calc C A. B. C. D. 61. M Calc A M Calc 62. 0.0940 0.0417 0.1500 0.1008 If lambda () is 3 occurrences per five minute time interval, the probability of getting 2 occurrences over a five minute interval is _______. A. 0.2700 B. 0.0498 C. 0.2240 D. 0.0001 If lambda () is 4 occurrences per five minute time interval, the probability of getting 3 occurrences over a five minute interval is _______. A. B. C. D. 0.1954 0.0183 0.2237 0.1680 Chapter 5: Discrete Distributions C 63. M Calc C M Calc D 65. M BCalc 5 60 30 10 If lambda () is 3 occurrences per five minute time interval, then if we wished to analyze the number of occurrences per hour, we would use an adjusted lambda of _______. A. B. C. D. 66. 0.1093 0.0067 0.1755 0.8000 If lambda () is 5 occurrences per ten minute time interval, then if we wished to analyze the number of occurrences per hour, we would use an adjusted lambda of _______. A. B. C. D. M Calc D If lambda () is 5 occurrences per ten minute time interval, the probability of getting 4 occurrences over a ten minute interval is _______. A. B. C. D. 64. 159 60 12 20 36 On Saturdays, cars arrive at Sami Schmitt's Scrub and Shine Car Wash at the rate of 6 cars per fifteen minute interval. Using the Poisson distribution, the probability that five cars will arrive during the next fifteen minute interval is _____________. A. B. C. D. 0.1008 0.0361 0.1339 0.1606 160 Test Bank B 67. H BCalc B 68. On Saturdays, cars arrive at Sami Schmitt's Scrub and Shine Car Wash at the rate of 6 cars per fifteen minute interval. Using the Poisson distribution, the probability that five cars will arrive during the next five minute interval is _____________. A. 0.1008 B. 0.0361 C. 0.1339 D. 0.1606 The hypergeometric distribution is similar to the binomial distribution except that _______. E Term A. B. C. D. A Suppose a committee of 3 people is to be selected from a group consisting of 4 men and 5 women. What is the probability that all three people selected are men? 69. M Calc D A. B. C. D. 70. M Calc C M BCalc 0.05 0.33 0.11 0.80 Suppose a committee of 3 people is to be selected from a group consisting of 4 men and 5 women. What is the probability that one man and two women are selected? A. B. C. D. 71. sampling is done with replacement in the hypergeometric sampling is done without replacement in the hypergeometric X does not represent the number of successes in the hypergeometric there are more than two possible outcomes in the hypergeometric 0.15 0.06 0.33 0.48 Aluminum castings are processed in lots of five each. A sample of two castings is randomly selected from each lot for inspection. A particular lot contains one defective casting; and X is the number of defective castings in the sample. P(X=0) is _______. A. B. C. D. 0.2 0.4 0.6 0.8 Chapter 5: Discrete Distributions 161 162 Test Bank B 72. Aluminum castings are processed in lots of five each. A sample of two castings is randomly selected from each lot for inspection. A particular lot contains one defective casting; and X is the number of defective castings in the sample. P(X=1) is _______. M BCalc A. B. C. D. A Circuit boards for wireless telephones are etched, in an acid bath, in batches of 100 boards. A sample of seven boards is randomly selected from each lot for inspection. A particular batch contains two defective boards; and X is the number of defective boards in the sample. P(X=1) is _______. 73. 0.2 0.4 0.6 0.8 M BCalc A. B. C. D. C Circuit boards for wireless telephones are etched, in an acid bath, in batches of 100 boards. A sample of seven boards is randomly selected from each lot for inspection. A particular batch contains two defective boards; and X is the number of defective boards in the sample. P(X=2) is _______. 74. 0.1315 0.8642 0.0042 0.6134 M BCalc A. B. C. D. B Circuit boards for wireless telephones are etched, in an acid bath, in batches of 100 boards. A sample of seven boards is randomly selected from each lot for inspection. A particular batch contains two defective boards; and X is the number of defective boards in the sample. P(X=0) is _______. 75. M BCalc A. B. C. D. 0.1315 0.8642 0.0042 0.6134 0.1315 0.8642 0.0042 0.6134 Chapter 5: Discrete Distributions D 76. 163 Ten policyholders file claims with CareFree Insurance. Three of these claims are fraudulent. Claims manager Earl Evans randomly selects three of the ten claims for thorough investigation. If X represents the number of fraudulent claims in Earl's sample, P(X=0) is _______________. M BCalc A. B. C. D. A Ten policyholders file claims with CareFree Insurance. Three of these claims are fraudulent. Claims manager Earl Evans randomly selects three of the ten claims for thorough investigation. If X represents the number of fraudulent claims in Earl's sample, P(X=1) is _______________. 77. 0.0083 0.3430 0.0000 0.2917 M BCalc A. B. C. D. B If sampling is performed without replacement, the hypergeometric distribution should be used. However, the binomial may be used to approximate this if _______. 78. 0.5250 0.4410 0.3000 0.6957 E Term A. B. C. D. D One hundred policyholders file claims with CareFree Insurance. Ten of these claims are fraudulent. Claims manager Earl Evans randomly selects four of the ten claims for thorough investigation. If X represents the number of fraudulent claims in Earl's sample, X has a _______________ distribution. 79. M BApp A. B. C. D. n > 5%N n < 5%N the population size is very small there are more than two possible outcomes of each trial continuous normal binomial hypergeometric 164 Test Bank B 80. One hundred policyholders file claims with CareFree Insurance. Ten of these claims are fraudulent. Claims manager Earl Evans randomly selects four of the ten claims for thorough investigation. If X represents the number of fraudulent claims in Earl's sample, X has a _______________. H BApp A. B. C. D. A Using the Poisson tables, find P(X=2) if =2.3. 81. E Calc D A. B. C. D. 82. E Calc B E Calc C E Calc 0.0804 0.0417 0.1414 0.0735 Using the Poisson tables, find P(X=5) if =3.6. A. B. C. D. 84. 0.2652 0.2700 0.2306 0.2033 Using the Poisson tables, find P(X=5) if =2.6. A. B. C. D. 83. normal distribution hypergeometric distribution, but may be approximated by a binomial binomial distribution, but may be approximated by a normal binomial distribution, but may be approximated by a Poisson 0.1322 0.1377 0.1912 0.1075 Using the Poisson tables, find P(X=6) if = 5.6. A. B. C. D. 0.1697 0.1490 0.1584 0.1267 Chapter 5: Discrete Distributions A 85. E Calc A A. B. C. D. 86. E Calc C 87. E Calc A E Calc C E Calc 3.6 0.7 0.3 8.4 In a binomial distribution, n=10 and p=0.6. What is "q"? A. B. C. D. 90. 0.001 0.000 0.003 0.014 In a binomial distribution, n=12 and p=0.3. What is "q"? A. B. C. D. 89. 0.171 0.080 0.111 0.024 Using the binomial tables, if n=15 and p=.8 find P(X=7). A. B. C. D. 88. 0.166 0.180 0.002 0.074 Using the binomial tables, if n=25 and p=.3 find P(X=7). A. B. C. D. E Calc B Using the binomial tables, if n=20 and p=.4 find P(X=7). 0.4 0.7 6 4 In a binomial distribution, n=10 and p=0.6. What is the mean? A. B. C. D. 2.4 4 6 5 165 166 Test Bank A 91. M Calc B A. B. C. D. 92. E Calc D 93. 0.06 2.4 0.24 24 The Poisson distribution is being used to approximate a binomial distribution. If n=60 and p=0.02, what value of lambda would be used? A. B. C. D. 94. 2.4 4 6 0.24 The Poisson distribution is being used to approximate a binomial distribution. If n=40 and p=0.06, what value of lambda would be used? A. B. C. D. E Calc C In a binomial distribution, n=10 and p=0.6. What is the variance? 0.02 12 0.12 1.2 The number of phone calls arriving at a switchboard in a 10 minute time period would best be modeled with the _________. M BApp A. B. C. D. A The number of defects per 1,000 feet of extruded plastic pipe is best modeled with the ________________. 95. M BApp A. B. C. D. binomial distribution hypergeometric distribution Poisson distribution hyperbinomial distribution Poisson distribution Pascal distribution binomial distribution hypergeometric distribution Chapter 5: Discrete Distributions B 96. The number of defects per square inch of hard disk surface is best modeled with the ________________. M BApp A. B. C. D. B The probability of selecting 2 male employees and 3 female employees for promotions in a small company would best be modeled with the _______. 97. 167 negative binomial distribution Poisson distribution binomial distribution hypergeometric distribution M BApp A. B. C. D. B The probability of selecting 3 defective items and 7 good items from a warehouse containing 10 defective and 50 good items would best be modeled with the _______. 98. binomial distribution hypergeometric distribution Poisson distribution hyperbinomial distribution M BApp A. B. C. D. A The probability of a student randomly guessing the answers to 25 multiple choice questions is best modeled with the _______. 99. M App A 100. M BApp binomial distribution hypergeometric distribution Poisson distribution hyperbinomial distribution A. binomial distribution B. hypergeometric distribution C. Poisson distribution D. hyperbinomial distribution The probability of getting 3 defective items and 7 good items in a group of 10 items as they come off an assembly line that is known to produce 3% defective is best modeled with the _______. A. B. C. D. binomial distribution hypergeometric distribution Poisson distribution hyperbinomial distribution 168 Test Bank C 101. The number of people arriving at a bank in a 15 minute time interval is best modeled using the _____________. M BApp A. B. C. D. binomial distribution hypergeometric distribution Poisson distribution hyperbinomial distribution Chapter 5: Discrete Distributions 102. M BApp 169 Alissa Roots has inherited $50,000 from her grandmother, and is evaluating investment alternatives. One alternative, insured 12-month certificates of deposit, offers 3% interest with no risk . Her other alternatives, a growth stock and a mutual fund, are risky. Their rates of return fluctuate from year to year; there are no guarantees. Historical performances of these alternatives are presented in the following probability distributions of annual rates of return. Growth Stock Mutual Fund Return P(Return) Return P(Return) -10% 0.1 -5% 0.1 0% 0.4 0% 0.3 40% 0.5 15% 0.6 Alissa has no immediate need for cash, but will need $10,000 in one year for a down payment on a house. The remainder is available for long-term investments. Evaluate Alissa's investment alternatives. Explain the relevance of the mean and the variance of these distributions to Alissa. What advice would you give her? How (in what amounts or proportions) should she allocate her inheritance among the alternatives? _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ 170 Test Bank 103. Duane Morgan, a market researcher at Kitchen Ease, Inc., is assessing alternative promotional strategies for a new kitchen wrap product. He is concentrating on two attributes of the product: (1) its low cost, and (2) its superior biodegradable characteristics. In test market X, his promotional materials emphasized low cost, and he emphasized the biodegradable properties in test market Y. During the test, Duane carefully monitored repeat purchases by households in each test market. His findings are summarized in the following probability distributions, where X is the percent of households in the 'low cost' test market making repeat purchases, and Y is the percent of households in the 'biodegradable' test market making repeat purchases. X 0 5 10 15 20 25 M BApp P(X) .55 .25 .10 .05 .03 .02 Y 0 5 10 15 20 25 P(Y) .05 .10 .35 .35 .10 .05 Discuss the managerial and ethical considerations of this situation. What can Duane conclude from these data? What other factors may help explain the differences between the two distributions? What graphic depiction should he choose for his presentation to the product managers? _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ Chapter 5: Discrete Distributions 104. 171 Troy Hodges is preparing the revise the operational plans and procedures for the regional port. Accordingly, he has collected data on the number of high-tonnage, dry cargo ships arriving per day for a period of forty days. (One hundred three ships arrived during the period.) Analysis of these data will support formulation of staffing plans for crews to unload and service the vessels. Day Arrivals 1 2 2 3 3 4 4 0 5 4 6 1 7 0 8 1 9 1 10 3 Day Arrivals 11 1 12 5 13 6 14 2 15 1 16 0 17 1 18 0 19 2 20 2 Day Arrivals 21 2 22 5 23 2 24 6 25 7 26 5 27 3 28 6 29 2 30 2 Day Arrivals 31 2 32 2 33 2 34 4 35 1 36 0 37 4 38 2 39 3 40 4 Assume that the number of arrivals per day has a Poisson distribution. a. What is the value of for the arrival distribution? b. What is the probability of zero arrivals in any given day? c. Troy's standard plan should provide a 90% service rate -- it should include adequate manpower and other resources to service 90% of the vessels on their arrival date. How many arrivals per day should Troy's standard plan anticipate? M BApp 172 Test Bank 105. Consider the following graphs of two Poisson distributions. One has= 4, and the other has= 7. 0.20 P(X) 0.15 0.10 0.05 0.00 0 2 4 6 8 10 12 14 X 0.20 P(X) 0.15 0.10 0.05 0.00 0 1 2 3 4 5 6 7 8 9 10 11 X Describe the distributions and explain why the graphs take the shape that they do. M BApp Chapter 5: Discrete Distributions 173