Stats for Business Econ: Understanding Probability Distributions

Tiffini Rucker March 26, 2024 Assignment 4 Stats for Business Econ Due Date: 3/26/24 Assignment 4 Instruction : Following the completion of your reading assignment of chapters 4-5, complete the multiple choice and problem-oriented questions listed below. Make sure to show every step of your work clearly. In the following multiple choice questions, circle the correct answer. 1. A numerical description of the outcome of an experiment is called a d. random variable 2. A random variable that can assume only a finite number of values is referred to as a(n) c. discrete random variable 3. A probability distribution showing the probability of x successes in n trials, where the probability of success does not change from trial to trial, is termed a b. binomial probability distribution 4. Variance is b. a measure of the dispersion of a random variable 5. A continuous random variable may assume a. any value in an interval or collection of intervals 6. A description of the distribution of the values of a random variable and their associated probabilities is called a

a. probability distribution 7. Which of the following is a required condition for a discrete probability function? d. Sf(x) = 1 8. A measure of the average value of a random variable is called a(n) c. expected value 9. Which of the following is not a required condition for a discrete probability function? b. Sf(x) = 1 10. The standard deviation is the d. positive square root of the variance 11. The variance is a measure of dispersion or variability of a random variable. It is a weighted average of the d. squared deviations from the mean 12. A weighted average of the value of a random variable, where the probability function provides weights is known as c. the expected value Exhibit 5-1 The following represents the probability distribution for the daily demand of microcomputers at a local store. Demand Probability 0 0.1

1 0.2 2 0.3 3 0.2 4 0.2 13. Refer to Exhibit 5-1. The expected daily demand is b. 2.2 14. Refer to Exhibit 5-1. The probability of having a demand for at least two microcomputers is a. 0.7 Exhibit 5-2 The student body of a large university consists of 60% female students. A random sample of 8 students is selected. 15. An experiment consists of making 80 telephone calls in order to sell a particular insurance policy. The random variable in this experiment is a a. discrete random variable 19. An experiment consists of determining the speed of automobiles on a highway by the use of radar equipment. The random variable in this experiment is a b. continuous random variable Exhibit 5-3 AMR is a computer consulting firm. The number of new clients that they have obtained each month has ranged from 0 to 6. The number of new clients has the probability distribution that is shown below. Number of New Clients Probability 0 0.05

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1 0.10 2 0.15 3 0.35 4 0.20 5 0.10 6 0.05 20. Refer to Exhibit 5-3. The expected number of new clients per month is c. 3.05 21. The standard deviation of a binomial distribution is d. None of these alternatives is correct. 22. The expected value for a binomial probability distribution is c. E(x) = nP 23. The variance for the binomial probability distribution is d. var(x) = nP(1 - P)

Assignment 4 - Stats for Business Econ

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