CHAPTER FOUR
Probability
D
1.
M
Term
B
E
Term
Which of the following is not a method of assigning probabilities?
A.
B.
C.
D.
2.
classical probability
relative frequency
subjective probability
elementary inference
A process that produces outcomes is called _______.
A.
B.
C.
D.
an event
an experiment
a result
population equivalent
101
102
Test Bank
A
3.
E
Term
A
A.
B.
C.
D.
4.
E
Term
B
5.
M
BApp
A
M
BApp
classical probability
relative frequency
subjective probability
elementary inference
Abel Alonzo, Director of Human Resources, is exploring employee absenteeism
at the Plano Power Plant. An analysis of personnel records indicated that 20% of
all plant employees are absent excessively. This is an example of assigning
probabilities by the ________________ method.
A.
B.
C.
D.
7.
classical probability
relative frequency
subjective probability
elementary inference
Using cumulated historical data to assign probabilities is called _______.
A.
B.
C.
D.
6.
classical probability
relative frequency
subjective probability
elementary inference
The method of assigning probabilities based on rules and laws is called _______.
A.
B.
C.
D.
E
Term
C
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 _______.
subjective probability
relative frequency
classical probability
a priori probability
Belinda Bose 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.
A.
B.
C.
D.
subjective probability
relative frequency
classical probability
a priori probability
Chapter 4: Probability
C
8.
E
App
9.
E
App
C
10.
11.
subjective probability
relative frequency
classical probability
empirical probability
Suzanne purchased a new microcomputer for each of her six 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.
A.
B.
C.
D.
E
Term
D
The probability of a “2” on a fair toss of a fair die is 1/6. This is an example of
assigning probabilities by the ________________ method.
A.
B.
C.
D.
D
subjective probability
relative frequency
empirical probability
classical probability
The method of assigning probabilities based on the insight or feelings of the
person determining is called _______.
A. classical probability
B. relative frequency
C. subjective probability
D. elementary inference
Which of the following is NOT a legitimate probability value?
E
Term
A.
B.
C.
D.
B
Which of the following is a legitimate probability value?
12.
E
Term
103
A.
B.
C.
D.
0.67
15/16
0.23
4/3
1.25
15/16
-0.45
8/7
104
Test Bank
A
13.
An outcome of an experiment is called _______.
E
Term
A.
B.
C.
D.
B
An event that cannot be broken down into other events is called _______.
14.
an event
a priori elements
a probability
a complement
E
Term
A.
B.
C.
D.
A
The list of all elementary events for an experiment is called _______.
15.
an a priori event
an elementary event
a sample space
an intersection
E
Term
A.
B.
C.
D.
D
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). Which of the following is NOT an elementary event for this
experiment?
16.
M
App
B
M
App
A.
B.
C.
D.
17.
the sample space
the exhaustive list
the population space
the event union
(D, D, G)
(G, D, G)
(G, G, G)
(D, D, D)
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.
B.
C.
D.
3,375
2,730
210
15
Chapter 4: Probability
D
18.
M
App
A
M
App
A
20.
M
App
1,000
720
100
10
In a set of 100 purchasing transactions, two transactions violated (V) company
procurement policies, and the remaining ninety-eight complied (C) with company
policies. An auditor randomly selects four of the 100 transactions without
replacement, and classifies each as violated (V) or complied (C). The sample
space for this experiment contains __________ elementary events.
A.
B.
C.
D.
21.
(D, D, G, G, G, G, G, G, G, G)
(D, D)
(G, G, G, G, G, G, G, G)
(D, D, D)
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.
B.
C.
D.
M
App
D
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). Which of the following is an elementary event for this experiment?
A.
B.
C.
D.
19.
105
94,109,400
100,000,000
3,921,225
400
In a set of 100 purchasing transactions, two transactions violated (V) company
procurement policies, and the remaining ninety-eight complied (C) with company
policies. An auditor randomly selects four of the 100 transactions without
replacement, and classifies each as violated (V) or complied (C). Which of the
following is NOT an elementary event for this experiment?
A.
B.
C.
D.
(C, C, C, C)
(V, C, V, C)
(C, V, C, C)
(V, C, V, V)
106
Test Bank
B
22.
M
App
D
A.
B.
C.
D.
23.
E
App
B
24.
E
App
B
E
App
Y must also occur
Y cannot occur
X and Y are independent
X and Y are complements
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}. F  H is ___________.
A.
B.
C.
D.
26.
not in the union of X and Y
not in X
not in Y
in both X and Y
If X and Y are mutually exclusive events, then if X occurs _______.
A.
B.
C.
D.
25.
it is not in the union of X and Y
it is in the union of X and Y
it is in the intersection of X and Y
it is in both the union and intersection of X and Y
If an event is in the intersection of X and Y, then this event is _______.
A.
B.
C.
D.
E
App
A
If an event is in set X but is not in set Y, which of the following is true?
{Meagan}
{Betty, Patty, Meagan}
empty, since F and H are complements
empty, since F and H are independent
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}. F  H is ___________.
A.
B.
C.
D.
{Meagan}
{Betty, Patty, Meagan}
empty, since F and H are complements
empty, since F and H are independent
Chapter 4: Probability
C
27.
E
App
D
M
App
C
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}. The complement of F is
___________.
A.
B.
C.
D.
28.
{Albert, Betty, Jack, Patty}
{Betty, Patty, Meagan}
{Albert, Abel, Jack}
{Betty, Abel}
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}, M = {Albert, Abel, Jack}, H = {Abel, Meagan}, and A = {Betty, Jack,
Patty}. Which of the following is NOT true?
A.
B.
C.
D.
29.
F and M are mutually exclusive
H and A are mutually exclusive
F and M are complements
H and A are complements
If the occurrence of one event does not affect the occurrence of another event,
then the two events are _______.
E
Term
A.
B.
C.
D.
D
Two events, X and Y, are complements. From this it can be deduced that
_______.
30.
mutually exclusive
complements
independent
elementary events
M
Term
A.
B.
C.
D.
A
The joint probability of X and Y is also referred to as _______.
31.
E
Term
107
A.
B.
C.
D.
X and Y are mutually exclusive
X and Y are collectively exhaustive
the intersection of X and Y is empty
all of the above
the intersection of X and Y
the union of X and Y
the marginal probability of X and Y
the probability of X given Y
108
Test Bank
C
32.
If X and Y are mutually exclusive, then _______.
E
Term
A.
B.
C.
D.
C
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).
33.
M
Calc
A
A.
B.
C.
D.
34.
M
Calc
D
M
Calc
0.15
0.30
0.40
0.55
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 the probability that a student is in accounting and
is also in statistics.
A.
B.
C.
D.
35.
the probability of the union is zero
P(X) = 1 - P(Y)
the probability of the intersection is zero
the probability of the union is one
0.15
0.70
0.55
0.12
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, and it is found that the
student is enrolled in accounting. What is the probability that this student is also
enrolled in statistics?
A.
B.
C.
D.
0.15
0.75
0.375
0.50
Chapter 4: Probability
C
36.
M
Calc
D
M
Calc
D
M
App
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, and it is found that the
student is enrolled in statistics. What is the probability that this student is also
enrolled in accounting?
A.
B.
C.
D.
37.
0.15
0.75
0.375
0.50
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?
A.
B.
C.
D.
38.
109
0.15
0.85
0.70
0.55
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. From this information, it can be concluded that
_______.
A.
B.
C.
D.
A and S are mutually exclusive
A and S are independent
A and S are complements
A and S are not independent
110
Test Bank
B
39.
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. If a
plant employee is selected randomly, and F is the event "works in the finishing
department," then P(F) = _____________.
M
BCalc
A.
B.
C.
D.
A
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." P(A  F) =
_____________.
40.
0.07
0.10
0.20
0.13
M
BCalc
A.
B.
C.
D.
D
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." P(A  F) =
_____________.
41.
M
BCalc
A.
B.
C.
D.
0.07
0.10
0.20
0.23
0.07
0.10
0.20
0.23
Chapter 4: Probability
B
42.
111
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." P(A|F) =
_____________.
H
BCalc
A.
B.
C.
D.
A
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." P(F|A) =
_____________.
43.
0.37
0.70
0.13
0.35
H
BCalc
A.
B.
C.
D.
C
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." Which of the following
is true?
44.
M
BApp
A.
B.
C.
D.
0.35
0.70
0.13
0.37
A and F are collectively exhaustive
A and F are mutually exclusive
A and F are dependent
A and F are independent
112
Test Bank
D
45.
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 2% 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." Which of the following
is true?
M
BApp
A.
B.
C.
D.
C
Max Sandlin is exploring the characteristics of stock market investors. He found
that sixty percent 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. If an investor is selected
randomly, and E is the event "networth exceeds $1,000,000," then P(E) =
_____________.
46.
A and F are collectively exhaustive
A and F are mutually exclusive
A and F are dependent
A and F are independent
M
BCalc
A.
B.
C.
D.
D
Max Sandlin is exploring the characteristics of stock market investors. He found
that sixty percent 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 "networth exceeds $1,000,000," and O is the event
"uses an online brokerage." P(E  O) = _____________.
47.
M
BCalc
A.
B.
C.
D.
0.17
0.10
0.60
0.20
0.17
0.10
0.60
0.20
Chapter 4: Probability
D
48.
113
Max Sandlin is exploring the characteristics of stock market investors. He found
that sixty percent 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 "networth exceeds $1,000,000," and O is the event
"uses an online brokerage." P(O  E) = _____________.
M
BCalc
A.
B.
C.
D.
A
Max Sandlin is exploring the characteristics of stock market investors. He found
that sixty percent 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 "networth exceeds $1,000,000," and O is the event
"uses an online brokerage." P(O|E) = _____________.
49.
0.17
0.50
0.80
0.70
M
BCalc
A.
B.
C.
D.
B
Max Sandlin is exploring the characteristics of stock market investors. He found
that sixty percent 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 "networth exceeds $1,000,000," and O is the event
"uses an online brokerage." P(E|O) = _____________.
50.
M
BCalc
A.
B.
C.
D.
0.17
0.50
0.80
0.70
0.17
0.50
0.80
0.70
114
Test Bank
B
51.
Max Sandlin is exploring the characteristics of stock market investors. He found
that sixty percent 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 "networth exceeds $1,000,000," and O is the event
"uses an online brokerage." Which of the following is true?
M
BApp
A.
B.
C.
D.
C
Max Sandlin is exploring the characteristics of stock market investors. He found
that sixty percent of all investors have a net worth exceeding $1,000,000; 20% of
all investors use an online brokerage; and 12% 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 "networth exceeds $1,000,000," and O is the event
"uses an online brokerage." Which of the following is true?
52.
E and O are collectively exhaustive
E and O are dependent
E and O are mutually exclusive
E and O are independent
M
BApp
A.
B.
C.
D.
C
Given P(A) = 0.40, P(B) = 0.50, P(A  B) = 0.15. Find P(A  B).
53.
E
Calc
C
E
Calc
A.
B.
C.
D.
54.
E and O are collectively exhaustive
E and O are mutually exclusive
E and O are independent
E and O are dependent
0.90
1.05
0.75
0.65
Given P(A) = 0.40, P(B) = 0.50, P(A  B) = 0.15. Find P(A|B).
A.
B.
C.
D.
0.20
0.80
0.30
0.375
Chapter 4: Probability
D
55.
E
Calc
D
A.
B.
C.
D.
56.
M
App
B
57.
E
Calc
C
E
Calc
A
M
App
0.50
0.65
0.55
0.25
Given P(A) = 0.25, P(B) = 0.40, P(A  B) = 0.10. Find P(B|A).
A.
B.
C.
D.
60.
0.45
0.55
0.75
0.65
Given P(A) = 0.25, P(B) = 0.40, P(A  B) = 0.10. Find P(A|B).
A.
B.
C.
D.
59.
A and B are independent
A and B are mutually exclusive
A and B are collectively exhaustive
A and B are not independent
Given P(A) = 0.25, P(B) = 0.40, P(A  B) = 0.10. Find P(A  B).
A.
B.
C.
D.
58.
0.20
0.80
0.30
0.375
Given P(A) = 0.40, P(B) = 0.50, P(A  B) = 0.15. Which of the following is
true?
A.
B.
C.
D.
E
Calc
D
Given P(A) = 0.40, P(B) = 0.50, P(A  B) = 0.15. Find P(B|A).
0.20
0.50
0.40
0.65
Given P(A) = 0.25, P(B) = 0.40, P(A  B) = 0.10. Which of the following is
true?
A.
B.
C.
D.
A and B are independent
A and B are mutually exclusive
A and B are collectively exhaustive
A and B are not independent
115
116
Test Bank
B
61.
E
Calc
A
A.
B.
C.
D.
62.
E
Calc
C
63.
E
Calc
3
6
2
1
There are three Democrats and four Republicans in a group of seven people. If
three people are selected from the total of seven, how many ways can two
Democrats and one Republican be selected?
A.
B.
C.
D.
64.
12
21
14
15
There are three Democrats and four Republicans in a group of seven people. If
two people are selected from the total of seven, how many ways can two
Democrats be selected?
A.
B.
C.
D.
M
Calc
D
There are three Democrats and four Republicans in a group of seven people. If
two people are selected from the total of seven, how many ways can two people
be selected?
7
14
12
21
A baseball player has a .300 batting average (i.e. there is a 30% chance of a hit on
any at bat). What is the probability that this player gets hits on each of his next 3
at bats?
A.
B.
C.
D.
0.900
0.300
0.333
0.027
Chapter 4: Probability
A
65.
E
Calc
B
A baseball player has a .300 batting average (i.e. there is a 30% chance of a hit on
any at bat). What is the probability that this player gets hits on each of his next 2
at bats and then makes an out on the next at bat?
A.
B.
C.
D.
66.
117
0.063
0.670
0.090
0.210
An automobile 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.
Type of
Buyer Gender
Vehicle
Female
Male
Total
SUV
Not SUV
.32
.48
Total
.40
1.00
P(Male) = _____________.
E
BCalc
A.
B.
C.
D.
D
An automobile 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.
67.
0.48
0.50
0.20
0.02
Type of
Buyer Gender
Vehicle
Female
Male
Total
SUV
Not SUV
.30
.40
Total
.60 1.00
P(Female  SUV) = _____________.
E
BCalc
A.
B.
C.
D.
0.30
0.40
0.12
0.10
118
Test Bank
B
68.
An automobile 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.
Type of
Buyer Gender
Vehicle
Female
Male
Total
SUV
Not SUV
.30
.40
Total
.60 1.00
P(Female) = _____________.
E
BCalc
A.
B.
C.
D.
A
An automobile 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.
69.
0.30
0.40
0.12
0.10
Type of
Buyer Gender
Vehicle
Female
Male
Total
SUV
Not SUV
.30
.40
Total
.60 1.00
P(SUV) = _____________.
E
BCalc
A.
B.
C.
D.
0.30
0.40
0.12
0.10
Chapter 4: Probability
B
70.
119
An automobile 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.
Type of
Buyer Gender
Vehicle
Female
Male
Total
SUV
Not SUV
.32
.48
Total
.40
1.00
Are “Female” and “SUV” independent and why or why not?
no, because P(Female  SUV) = P(Female) · P(SUV)
no, because P(SUV) cannot be calculated from this information
yes, because P(Female | SUV) = P(Female)
yes, because P(Female  SUV)  0
M
BCalc
A.
B.
C.
D.
D
Meagan Dubean manages a portfolio of 200 common stocks. Her staff classified
the portfolio stocks by 'industry sector' and 'investment objective.'
Investment
Industry Sector
Objective
Electronics Airlines Healthcare Total
Growth
100
10
40
150
Income
20
20
10
50
Total
120
30
50
200
If a stock is selected randomly from Meagan's portfolio, P(Growth) = _______.
71.
E
BCalc
A.
B.
C.
D.
0.50
0.83
0.67
0.75
120
Test Bank
A
72.
Meagan Dubean manages a portfolio of 200 common stocks. Her staff classified
the portfolio stocks by 'industry sector' and 'investment objective.'
Investment
Industry Sector
Objective
Electronics Airlines Healthcare Total
Growth
100
10
40
150
Income
20
20
10
50
Total
120
30
50
200
If a stock is selected randomly from Meagan's portfolio, P(Healthcare) = _______.
E
BCalc
A.
B.
C.
D.
B
Meagan Dubean manages a portfolio of 200 common stocks. Her staff classified
the portfolio stocks by 'industry sector' and 'investment objective.'
Investment
Industry Sector
Objective
Electronics Airlines Healthcare Total
Growth
100
10
40
150
Income
20
20
10
50
Total
120
30
50
200
If a stock is selected randomly from Meagan's portfolio, P(Healthcare 
Electronics) = _______.
73.
M
BCalc
A.
B.
C.
D.
0.25
0.80
0.20
0.75
0.25
0.85
0.60
0.75
Chapter 4: Probability
A
74.
121
Meagan Dubean manages a portfolio of 200 common stocks. Her staff classified
the portfolio stocks by 'industry sector' and 'investment objective.'
Investment
Industry Sector
Objective
Electronics Airlines Healthcare Total
Growth
100
10
40
150
Income
20
20
10
50
Total
120
30
50
200
If a stock is selected randomly from Meagan's portfolio, P(Growth  Income) =
_______.
M
BCalc
A.
B.
C.
D.
B
Meagan Dubean manages a portfolio of 200 common stocks. Her staff classified
the portfolio stocks by 'industry sector' and 'investment objective.'
Investment
Industry Sector
Objective
Electronics Airlines Healthcare Total
Growth
100
10
40
150
Income
20
20
10
50
Total
120
30
50
200
If a stock is selected randomly from Meagan's portfolio, P(Airlines|Income) =
_______.
75.
H
BCalc
A.
B.
C.
D.
1.00
0.65
0.25
0.85
0.10
0.40
0.25
0.67
122
Test Bank
D
76.
Meagan Dubean manages a portfolio of 200 common stocks. Her staff classified
the portfolio stocks by 'industry sector' and 'investment objective.'
Investment
Industry Sector
Objective
Electronics Airlines Healthcare Total
Growth
100
10
40
150
Income
20
20
10
50
Total
120
30
50
200
If a stock is selected randomly from Meagan's portfolio, P(Growth|Healthcare) =
_____.
H
BCalc
A.
B.
C.
D.
D
Meagan Dubean manages a portfolio of 200 common stocks. Her staff classified
the portfolio stocks by 'industry sector' and 'investment objective.'
Investment
Industry Sector
Objective
Electronics Airlines Healthcare Total
Growth
100
10
40
150
Income
20
20
10
50
Total
120
30
50
200
Which of the following is NOT true?
77.
M
BApp
A.
B.
C.
D.
0.25
0.40
0.20
0.80
Growth and Income are complementary events.
Electronics and Growth are dependent.
Electronics and Healthcare are mutually exclusive.
Airlines and Healthcare are collectively exhaustive.
Chapter 4: Probability
B
78.
123
Meagan Dubean manages a portfolio of 200 common stocks. Her staff classified
the portfolio stocks by 'industry sector' and 'investment objective.'
Investment
Industry Sector
Objective
Electronics Airlines Healthcare Total
Growth
84
21
35
140
Income
36
9
15
60
Total
120
30
50
200
Which of the following is true?
M
BApp
A.
B.
C.
D.
A
Meagan Dubean manages a portfolio of 200 common stocks. Her staff classified
the portfolio stocks by 'industry sector' and 'investment objective.'
Investment
Industry Sector
Objective
Electronics Airlines Healthcare Total
Growth
84
21
35
140
Income
36
9
15
60
Total
120
30
50
200
Are “Healthcare” and “Income” independent and why or why not?
79.
Growth and Healthcare are complementary events.
Electronics and Growth are independent.
Electronics and Growth are mutually exclusive.
Airlines and Healthcare are collectively exhaustive.
M
BCalc
A.
B.
C.
D.
B
The table below provides summary information about students in a class. The sex
of each individual and the major is given.
Male
Female
Total
Accounting
12
18
30
Finance
10
8
18
Other
26
26
52
Total
48
52
100
If a student is randomly selected from this group, what is the probability that the
student is male?
E
Calc
80.
A.
B.
C.
D.
yes, because P(Healthcare | Income) = P(Healthcare)
no, because P(Healthcare)  P(Income)
no, because P(Income  Healthcare) = P(Healthcare) · P(Income)
yes, because P(Income  Healthcare)  0
0.12
0.48
0.50
0.52
124
Test Bank
A
81.
E
Calc
C
H
Calc
The table below provides summary information about students in a class. The sex
of each individual and the major is given.
Male
Female
Total
Accounting
12
18
30
Finance
10
8
18
Other
26
26
52
Total
48
52
100
If a student is randomly selected from this group, what is the probability that the
student is a female who majors in accounting?
A.
B.
C.
D.
82.
0.18
0.60
0.35
0.40
The table below provides summary information about students in a class. The sex
of each individual and the major is given.
Male
Female
Total
Accounting
12
18
30
Finance
10
8
18
Other
26
26
52
Total
48
52
100
A student is randomly selected from this group, and it is found that the student is
majoring in finance. What is the probability that the student is a male?
A.
B.
C.
D.
0.21
0.10
0.56
0.48
Chapter 4: Probability
D
83.
H
Calc
A
M
Calc
The table below provides summary information about students in a class. The sex
of each individual and the major is given.
Male
Female
Total
Accounting
12
18
30
Finance
10
8
18
Other
26
26
52
Total
48
52
100
A student is randomly selected from this group, and it is found that the student is a
male. What is the probability that the student is majoring in accounting?
A.
B.
C.
D.
84.
125
0.30
0.40
0.12
0.25
The table below provides summary information about students in a class. The sex
of each individual and the major is given.
Male
Female
Total
Accounting
12
18
30
Finance
10
8
18
Other
26
26
52
Total
48
52
100
A student is randomly selected from this group. Let A be the event that the
student is an accounting major and let F be the event that the student is female.
Find P(F and A).
A.
B.
C.
D.
0.18
0.156
0.52
0.30
126
Test Bank
C
85.
M
App
B
The table below provides summary information about students in a class. The sex
of each individual and the major is given.
Male
Female
Total
Accounting
12
18
30
Finance
10
8
18
Other
26
26
52
Total
48
52
100
A student is randomly selected from this group. Let A be the event that the
student is an accounting major and let F be the event that the student is female.
Are A and F independent and why or why not?
A.
B.
C.
D.
86.
E
BCalc
yes, because there are some male accounting majors
no, because there are some male accounting majors
no, because P(A|F) does not equal P(A)
no, because P(A|F) does not equal P(F)
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
If one of these consumers is randomly selected, what is the probability that the
person prefers design A?
A.
B.
C.
D.
0.76
0.38
0.33
0.22
Chapter 4: Probability
B
87.
127
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
If one of these consumers is randomly selected, what is the probability that the
person prefers design A and is under 25?
M
BCalc
A.
B.
C.
D.
B
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
If one of these consumers is randomly selected and is under 25, what is the
probability that the person prefers design A?
88.
H
BCalc
A.
B.
C.
D.
0.22
0.11
0.18
0.54
0.22
0.23
0.29
0.18
128
Test Bank
C
89.
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
If one of these consumers is randomly selected and prefers design B, what is the
probability that the person is 25 or older?
H
BCalc
A.
B.
C.
D.
C
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
Are “B” and “25 or older” independent and why or why not?
90.
0.28
0.14
0.45
0.27
no, because P(25 or over | B)  P(B)
yes, because P(B) = P(C)
no, because P(25 or older | B)  P(25 or older)
yes, because P(25 or older  B)  0
M
BCalc
A.
B.
C.
D.
A
Of 10 people on a student newspaper staff, 6 are familiar with a particular word
processing package. If three people are randomly selected and assigned to work
as a team, how many ways could the team be selected?
E
Calc
91.
A.
B.
C.
D.
120
10
3
720
Chapter 4: Probability
B
92.
E
Calc
D
M
Calc
A
Of 10 people on a student newspaper staff, 6 are familiar with a particular word
processing package. If three people are randomly selected and assigned to work
as a team, how many ways could a team be selected in which no one was familiar
with the word processing package?
A.
B.
C.
D.
93.
E
BApp
120
4
6
24
Of 10 people on a student newspaper staff, 6 are familiar with a particular word
processing package. If three people are randomly selected and assigned to work
as a team, how many ways could a team be selected in which one was familiar
with the word processing package and the other two were not?
A.
B.
C.
D.
94.
129
24
120
20
36
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). What is the a priori probability that a new product would be a
success?
A.
B.
C.
D.
0.50
0.80
0.70
0.60
130
Test Bank
D
95.
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 probability that
the market research firm would predict it to be a success?
H
BCalc
A.
B.
C.
D.
B
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). If the market research predicted that the product would be a success,
what is the probability that it actually would be a success?
96.
0.80
0.50
0.45
0.55
H
BCalc
A.
B.
C.
D.
B
An analysis of personal loans at Georgetown Global Bank revealed the following
facts: 10% of all personal loans are in default (D), 90% of all personal loans are
not in default ( D ), 20% of those in default are homeowners (H|D), and 70% of
those not in default are homeowners (H| D ). If one of the personal loans is
selected at random P(H  D) = ___________.
97.
M
BCalc
A.
B.
C.
D.
0.27
0.73
0.80
0.24
0.20
0.63
0.90
0.18
Chapter 4: Probability
A
98.
131
An analysis of personal loans at Georgetown Global Bank revealed the following
facts: 10% of all personal loans are in default (D), 90% of all personal loans are
not in default ( D ), 20% of those in default are homeowners (H|D), and 70% of
those not in default are homeowners (H| D ). If one of the personal loans is
selected at random P(D|H) = ___________.
H
BCalc
A.
B.
C.
D.
A
Given P(A) = 0.6, P(B) = 0.4, P(A  B)=0.24. Which of the following statements
is true?
99.
0.03
0.63
0.02
0.18
M
Calc
A.
B.
C.
D.
P(A|B) = 0.60
P(A|B) = 0.40
P(B|A) = 0.60
A and B are mutually exclusive
C 100.
Given P(A) = 0.6, P(B) = 0.4, P(A|B)=0.50. Which of the following statements is
true?
M
Calc
A.
B.
C.
D.
B 101.
Given P(A) = 0.6, P(B) = 0.4, P(A|B)=0.50. Find P(A  B).
M
Calc
A.
B.
C.
D.
A and B are independent
P(A  B) = .30
P(A  B) = .20
none of the above is true
1.00
0.80
1.10
0.10
132
Test Bank
B 102.
The staffs of the accounting and the quality control departments rated their
respective supervisor's leadership style as either (1) authoritarian or (2)
participatory. Their responses are tabulated in the following table.
Leadership Style
Department
Authoritarian
Participatory
Total
Accounting
12
18
30
Quality Control
28
42
70
Total
40
60
100
If one of these employees is selected randomly, P(Accounting  Participatory) =
___.
M
BCalc
A.
B.
C.
D.
A 103.
The staffs of the accounting and the quality control departments rated their
respective supervisor's leadership style as either (1) authoritarian or (2)
participatory. Their responses are tabulated in the following table.
Leadership Style
Department
Authoritarian
Participatory
Total
Accounting
12
18
30
Quality Control
28
42
70
Total
40
60
100
If one of these employees is selected randomly, P(Accounting  Participatory) =
___.
M
BCalc
A.
B.
C.
D.
0.18
0.72
0.90
0.30
0.18
0.72
0.90
0.12
Chapter 4: Probability
C 104.
The staffs of the accounting and the quality control departments rated their
respective supervisor's leadership style as either (1) authoritarian or (2)
participatory. Their responses are tabulated in the following table.
Leadership Style
Department
Authoritarian
Participatory
Total
Accounting
12
18
30
Quality Control
28
42
70
Total
40
60
100
Which of the following statements is NOT true?
M
BApp
A.
B.
C.
D.
D 105.
The staffs of the accounting and the quality control departments rated their
respective supervisor's leadership style as either (1) authoritarian or (2)
participatory. Their responses are tabulated in the following table.
Leadership Style
Department
Authoritarian
Participatory
Total
Accounting
12
18
30
Quality Control
28
42
70
Total
40
60
100
Are Accounting and Authoritarian independent and why or why not?
M
BApp
A.
B.
C.
D.
Authoritarian and Participatory are mutually exclusive
Accounting and Quality Control are complements
Accounting and Participatory are dependent
Accounting and Quality Control are collectively exhaustive
no, because P(Accounting)  P(Authoritarian)
yes, because P(Accounting) = P(Authoritarian | Accounting)
no, because P(Authoritarian)  P(Participatory)
yes, because P(Accounting) = P(Accounting | Authoritarian)
133
134
Test Bank
C 106.
The staffs of the accounting and the quality control departments rated their
respective supervisor's leadership style as either (1) authoritarian or (2)
participatory. Their responses are tabulated in the following table.
Leadership Style
Department
Authoritarian
Participatory
Total
Accounting
40
5
45
Quality Control
20
35
55
Total
60
40
100
If one of these employees is selected randomly, P(Accounting  Participatory) =
___.
M
BCalc
A.
B.
C.
D.
D 107.
The staffs of the accounting and the quality control departments rated their
respective supervisor's leadership style as either (1) authoritarian or (2)
participatory. Their responses are tabulated in the following table.
Leadership Style
Department
Authoritarian
Participatory
Total
Accounting
40
5
45
Quality Control
20
35
55
Total
60
40
100
If one of these employees is selected randomly, P(Accounting  Participatory) =
___.
M
BCalc
A.
B.
C.
D.
0.18
0.72
0.80
0.05
0.18
0.72
0.80
0.05
Chapter 4: Probability
A 108.
The staffs of the accounting and the quality control departments rated their
respective supervisor's leadership style as either (1) authoritarian or (2)
participatory. Their responses are tabulated in the following table.
Leadership Style
Department
Authoritarian
Participatory
Total
Accounting
40
5
45
Quality Control
20
35
55
Total
60
40
100
Which of the following statements is NOT true?
M
BApp
A. Accounting and Participatory are statistically independent
B. Accounting and Quality Control are complements
C. Accounting and Quality Control are mutually exclusive
D. Authoritarian and participatory are collectively exhaustive
A 109.
The staffs of the accounting and the quality control departments rated their
respective supervisor's leadership style as either (1) authoritarian or (2)
participatory. Their responses are tabulated in the following table.
Leadership Style
Department
Authoritarian
Participatory
Total
Accounting
40
5
45
Quality Control
20
35
55
Total
60
40
100
Are Accounting and Authoritarian independent and why or why not?
M
BApp
A. no, because P(Accounting)  P(Accounting | Authoritarian)
B. yes, because P(Accounting) = P(Authoritarian | Accounting)
C. no, because P(Authoritarian)  P(Participatory)
D. no, because P(Accounting)  P(Authoritarian)
135
136
Test Bank
110.
An Employee Involvement Team is studying a problem of quality with an
aluminum casting. Team members gather data on 400 castings and compiled the
following table.
Castings
Status
No Defects
Reworked
Scrapped
Production Shift
Day
Evening
Night
195
75
50
5
15
30
0
10
20
Discuss the team's findings. What can the team conclude from these data? What
employment practices or other factors may explain the 'night shift problem?'
What graphic depiction should the team choose for the presentation to their
supervisors?
M
BApp
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
Chapter 4: Probability
111.
M
BApp
137
James Desreumaux, VP of Human Resources of American First Banks (AFB), is
reviewing the employee evaluation programs of AFB banks. His staff classified
the employees of two AFB banks by their supervisor-assigned performance rating.
Performance Rating
Bank
Below Average
Average
Above Average
Metro
4
22
34
East Brook
6
18
16
Discuss the managerial implications of this situation. What can James conclude
from these data? What other relevant factors should he consider? What graphic
depiction should he choose for his presentation to the bank's board of directors?
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
138
Test Bank
112.
Crosstabulation of responses from readers of newspaper comic strips produced the
following frequency distirbution of age categories and favorite comic.
Age
Under 12
12 Under 18
18 Under 25
25 Under 50
50+
Grand Total
Favorite Comic by Age
Comic
Tiger Sherman Dilbert Pickles Grand Total
28
22
16
14
80
14
11
8
7
40
56
44
32
28
160
28
22
16
14
80
14
11
8
7
40
140
110
80
70
400
Discuss what the frequency distribution reveals about the relation between age
and favorite comic.
M
BApp
Chapter 4: Probability
113.
Crosstabulation of responses from television viewers produced the following
frequency distirbution of age categories and favorite TV program.
Age
Under 12
12 under 18
18 under 25
25 under 50
50+
Grand Total
Favorite TV Program by Age
TV Program
MTV Simpsons 60 Minutes
COPS Grand Total
18
8
2
2
30
29
23
3
3
58
33
33
21
11
98
6
15
35
28
84
1
4
6
19
30
87
83
67
63
300
Discuss what the frequency distribution reveals about the relation between age
and favorite TV program.
M
BApp
139
140
Test Bank