1.

Data that is divided into different categories that can be ranked are said to have:
a. a nominal scale b. an ordinal scale c. a ratio scale

2. A sampling technique that involves selecting a random sample from different population
subgroups is known as:
a. simple random sampling
b. systematic random sampling
c. stratified random sampling

3. Taking 200 seniors citizens in a large city to determine the amount spent on prescription
drugs resembles a:
a. sample b. population c. variable

4. A type of chart that consists of a circle divided into portions that represent the relative
frequencies or percentages of different categories or classes is a:
a. bar chart b. pie chart c. line chart

5. The set of all experimental outcomes is:

a. elementary event b. sample space c. event

6. If every 10th item is systematically sampled to produce a sample size of 90 items, the
population size is approximately:
a. 900 b. 100 c. 9

7. A summary measure calculated for the population data is called:

a. a population parameter b. a sample parameter c. a sample statistic

8. The data collection method recommended for a pet store to determine the level of customer
satisfaction with its services would be through:
a. an experiment b. an observation c. a questionnaire

9. A tabular summary of data showing the fraction or proportion of data values in each of
several non-overlapping classes is the:
a. frequency b. cumulative frequency c. relative frequency

10. Two events that have no influence on each other, are said to be:
a. independent events b. dependent events c. mutually exclusive events

11. The data for average prices of houses in Sheikh Zayed over the period from 2000 till 2015
is considered to be:
a. time-series data b. cross-section data c. categorical data
12. Which of the following summary measures is computed only from the center values and is
not sensitive to extreme values?
a. mean b. median c. mode

13. Which of the following variables is a quantitative continuous variable?

 a. Women’s favorite TV programs
b. Salaries of football players
c. Number of pets owned by families

14. An assessment method that defines probability of an event as reflecting a decision maker’s
state of mind regarding the chances that a particular event will occur is known as:
a. classical probability assessment
b. relative frequency assessment
c. subjective probability assessment

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Fill in the missing components of the following frequency distribution constructed for a sample
size of 50:

Relative Cumulative Rel.

Class Frequency
Frequency Frequency
7.85 - < ____ ____ ____ 0.12
____ - < 8.05 ____ ____ 0.48
8.05 - < ____ ____ 0.24 ____
____ - < 8.25 ____ 0.10 ____
8.25 - < ____ ____ ____ ____

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Anyone attending college realizes tuition costs have increased rapidly. In fact, tuition has risen at
a faster pace than inflation for more than two decades. Data showing costs (in dollars) for both
private and public colleges, for selected years, are shown below:

Year 1996 2001 2006 2011 2016

Private College Tuition 9,200 12,100 13,800 16,500 19,700
Public College Tuition 2,000 2,400 3,200 3,600 4,700

a. Construct a bar graph illustrating the relationship between private and public university
tuition for the displayed years (use scale 1 cm for every $2000 in tuition).
b. Describe the tuition trend for both private and public university tuition. Compare both
to each other.
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The marketing director for Allianz Insurance was worried about the increasing age of the
company’s policyholder base. She wants to determine whether a new advertising campaign has
had the desired effect of attracting younger customers. She took a sample of 10 new policies and
found the following ages:

32 22 24 27 27 33 28 23 24 21

a. Calculate the mean, median, and mode ages.

b. Find the range, variance, and standard deviation of the ages for this sample.
c. Calculate the coefficient of variation.
d. Construct a box and whisker plot for the data.
e. Before the new advertising campaign, the average age of the customers was 37.8 years.
Based on your calculations above, has the advertising campaign been effective in
reducing the average age of the customers.

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Two customers are asked to name their choice of chocolate bar among Mars, Bounty, Twix, and
Snickers.
a. Draw a tree diagram for this problem.
b. List the sample space showing the possible outcomes.
c. What is the probability that both customers select different chocolate bars?
d. What is the probability that one or both customers select Mars chocolate bar?
e. What is the probability that neither customer select Snickers?

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According to Nielsen Media Research, approximately 67% of all U.S. households with television
have cable TV. Seventy-four percent of all U.S. households with television have two or more TV
sets. Suppose 55% of all U.S. households with television have cable TV and two or more TV
sets. A U.S. household with television is randomly selected.
a. What is the probability that the household has cable TV or two or more TV sets?
b. What is the probability that the household has only one TV set?
c. What is the probability that the household has neither cable TV nor two or more TV
sets?
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Two thousand randomly selected adults were asked if they think they are financially better off
than their parents. The following table gives the two-way classification of the responses based on
the education levels of the persons included in the survey and whether they are better off, the
same, or worse off financially than their parents.

Education Level
Less Than High High More Than High
School School School
Better Off 140 450 420
Same 60 250 110
Worse Off 200 300 70

a. Are the events “less than high school” and “more than high school” mutually
exclusive? Why or why not?
b. If one adults is selected at random from these 2000 adults, find the probability that this
adult is:
• Financially better off than his/her parents.
• Financially better off than his/her parents given s/he has less that high school
education.
• Financially worse off than his/her parents and s/he has high school education.
• Financially worse off than his/her parents or s/he has high school education.
• Financially worse off than his/her parents given s/he has high school education.
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1. The scale of measurement for a variable when the data are labels or names used to identify
an attribute of an element is:
b. a nominal scale b. an ordinal scale c. a ratio scale

2. The kind of sampling most likely used as part of a quality assurance procedure within the
Doritos manufacturing plant that tests every 1,000th bag of Doritos produced to make sure
the bag is sealed properly is a:
a. simple random sampling
b. systematic random sampling
c. stratified random sampling

3. A measure of variability, defined to be the difference between the third and first quartiles is
the:
b. range b. standard deviation c. inter-quartile range

4. A chart that is made of bars whose heights represent the frequencies of respective
categories is a:
b. bar chart b. pie chart c. line chart
 5. The outcome of an experiment is:
b. elementary event b. sample space c. event

6. Assuming you have data for a variable with 500 values, the least number of groups that
should be used in developing a grouped data frequency distribution is:
b. 7 b. 8 c. 9

7. A summary measure calculated for the sample data is called:

b. a population parameter b. a sample parameter c. a sample statistic

8. The data collection method recommended for collecting data on the customer satisfaction
with the service provided by Egypt Air is:
b. an experiment b. an observation c. a questionnaire

9. The graphical representation of the cumulative relative frequency where points are plotted
above the upper limit of each class at a height corresponding to the cumulative is a:
b. histogram b. ogive c. polygon

10. One card is drawn from a standard 52-card deck. In describing the occurrence of two
possible events, an Ace and a King, these two events are said to be:
b. independent events b. dependent events c. mutually exclusive events

11. A set of data values observed at a fixed point in time is:

b. time-series data b. cross-section data c. categorical data

12. Which of the following summary measures is computed only from the center values and is
not sensitive to extreme values?
b. mean b. median c. mode

13. Which of the following variables is a qualitative variable?

a. Women’s favorite TV programs
b. Salaries of football players
c. Number of pets owned by families

14. An assessment method that defines probability of an event as reflecting a decision maker’s
state of mind regarding the chances that a particular event will occur is known as:
a. classical probability assessment
b. relative frequency assessment
c. subjective probability assessment

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The Rathburn Manufacturing Company makes electric wiring, which it sells to contractors in
the construction industry. Approximately 900 electric contractors purchase wire from
Rathburn annually. Rathburn’s director of marketing wants to determine electric contractors’
satisfaction with Rathburn’s wire. He developed a questionnaire that yields a satisfaction
score between 10 and 50 for participant responses. A random sample of 35 of the 900
 contractors is asked to complete a satisfaction survey. The satisfaction scores for the 35
participants are averaged to produce a mean satisfaction score.
a. What is the population for this study?
b. What is the sample for this study?
c. What is the statistic for this study?
d. What would be a parameter for this study?

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According to the Bureau of Labor Statistics, the average annual salary of a worker in Detroit,
Michigan, is $35,748. Suppose the median annual salary for a worker in this group is
$31,369 and the mode is $29,500. Is the distribution of salaries for this group skewed? If so,
how and why?

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The following frequency distribution table gives the age distribution of drivers who were at
fault in auto accidents that occurred during a 1-week period in a city.

Age (Years) Frequency

18 - < 20 7
20 - < 25 12
25 - < 30 18
30 - < 40 14
40 - < 50 15
50 - < 60 16
60 and over 35

a. Draw a relative frequency histogram for this table.

b. In what way(s) is this histogram misleading?
c. How can you change the frequency distribution so that the resulting histogram gives a
clearer picture?

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Anyone attending college realizes tuition costs have increased rapidly. In fact, tuition has
risen at a faster pace than inflation for more than two decades. Data showing costs (in
dollars) for both private and public colleges, for selected years, are shown below:

Year 1996 2001 2006 2011 2016

Private College Tuition 9,200 12,100 13,800 16,500 19,700
Public College Tuition 2,000 2,400 3,200 3,600 4,700
 a. Construct a bar graph illustrating the relationship between private and public university
tuition for the displayed years (use scale 1 cm for every $2000 in tuition).
b. Describe the tuition trend for both private and public university tuition. Compare both
to each other.

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Shown here are the U.S. oil refineries with the largest capacity in terms of barrels per day
according to the U.S. Energy Information Administration. Use these as population data and
answer the questions.

Refinery Location Company Capacity

(thousands)
Baytown, Texas ExxonMobil 567
Baton Rouge, Louisiana ExxonMobil 503
Texas City, Texas BP 467
Lake Charles, Louisiana Citgo 429
Whiting, Indiana BP 410
Beaumont, Texas ExxonMobil 348
Philadelphia, Pennsylvania Sunoco 335
Pascagoula, Mississippi Chevron 330
Deer Park, Texas Partnership 329
Wood River, Illinois WRB 306
Port Arthur, Texas Premcor 288

a. What is the values of the mean?

b. What are the values of variance and standard deviation for these data?
c. What is the value of the third quartile?

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Famous Dave’s is a successful barbeque chain and sells its beef, chicken, and turkey items to
three kinds of customers: dine-in, delivery, and pickup. Last year’s sales showed that 12,753
orders were dine-in, 5,893 were delivered, and 3,122 orders were pickup. Suppose an audit of
last year’s sales is being conducted.
a. If a customer order is selected at random, what is the probability it will be a pickup
order?
b. What method of probability assessment was used to determine the probability in part a?
c. If two customer orders are selected at random, draw a tree diagram indicating the type
of order for both customers.
d. List the sample space showing the possible outcomes for part c.
 e. What is the probability that one or both customers are dine-in?
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A study by Peter D. Hart Research Associates for the Nasdaq Stock Market revealed that
43% of all American adults are stockholders. In addition, the study determined that 75% of
all American adult stockholders have some college education. Suppose 37% of all American
adults have some college education. An American adult is randomly selected.
a. What is the probability that the adult does not own stock?
b. What is the probability that the adult owns stock and has some college education?
c. What is the probability that the adult owns stock or has some college education?
d. What is the probability that the adult has neither some college education nor owns
stock?
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Accounting Today reported that 37% of accountants purchase their computer hardware by
mail order direct and that 54% purchase their computer software by mail order direct.
Suppose that 97% of the accountants who purchase their computer hardware by mail order
direct purchase their computer software by mail order direct. If an accountant is randomly
selected, determine the following probabilities:
a. The accountant does not purchase his computer software by mail order direct given that
he does purchase his computer hardware by mail order direct.
b. The accountant does purchase his computer software by mail order direct given that he
does not purchase his computer hardware by mail order direct.
c. The accountant does not purchase his computer hardware by mail order direct if it is
known that he does purchase his computer software by mail order direct.
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An insurance company issues life insurance policies in three separate categories: standard,
preferred, and ultra-preferred. Of the company’s policyholders, 50% are standard, 40% are
preferred, and 10% are ultra-preferred. Each standard policyholder has probability 0.010 of dying
in the next year, each preferred policy holder has probability 0.005 of dying in the next year, and
each ultra-preferred policyholder has probability 0.001 of dying in the next year. If a policyholder
dies in the next year, what is the probability that the deceased policyholder was ultra-preferred?

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In a state where cars have to be tested for the emission of pollutants, 25% of all cars emit excessive
amounts of pollutants. When tested, 99% of all cars that emit excessive amounts of pollutants will
fail and 17% of the cars that do not emit excessive amounts of pollutants will fail. If a car fails a
test, what is the probability it actually emits excessive amounts of pollutants?

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A company produces machine components which pass through an automatic testing machine. 5%
of the components entering the testing machine are defective. However, the machine is not entirely
reliable. If a component is defective there is a 4% probability that it will not be rejected. If a
component is not defective there is a 7% probability that it will be rejected.
• What fraction of all the components is rejected?
• If the component is rejected, what is the chance that it is not defective?

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The following table shows the cumulative distribution function of a discrete random variable.
Find the probability mass function, expected value and standard deviation of this probability
distribution.

x F(x)
0 0
1 .1
2 .3
3 .7
4 .8
5 1.0

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Assume that Rachel is taking a psychology class; on Monday of one week the class is given a
short surprise quiz consisting of four true-false questions and three multiple choice questions
with three choices for each. One response is correct for each question. Suppose Rachel has
not had time to keep up her studies and is totally unprepared for all the questions;
consequently, she will guess in choosing her answer for each question.
(a) What is the probability that Rachel will get all answers correct?
(b) What is the probability that Rachel will get all answers incorrect?
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The probability that any child in a certain family will have blue eyes is 0.25, and this feature
is inherited independently by different children in the family. If there are five children in
the family
a. Find the probability that at least two of the children have blue eyes.
b. Find the mean and standard deviation of the number of children with blue eyes.
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 Suppose that the probability density function of a random variable Y is as follows
 1
y 0 y4
f ( y ) = 8
 0 otherwise
a. Find the 𝑷(𝒀 ≤ 𝟐)
𝟏
b. Find the value of t such that 𝑷(𝒀 ≥ 𝒕) = 𝟐;
c. Find the mean and standard deviation of Y .

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Suppose that the probability density function of a random variable Y is as follows

 4
f (y) = 3
(1 − y 3 ) 0  y  1
 0 otherwise
a. Find the Cumulative distribution function F ( y ) ;
b. Use F ( y ) to find
1 3  1
P  Y   and P Y   .
4 4  3