Chapter 07: Continuous Probability Distributions

True / False Questions

1. A continuous uniform distribution is always

symmetric.

True False

2 The height and width of a continuous uniform distribution's PDF are the same.
.
True False

3. A continuous uniform distribution U(0, 800) will have μ = 400 and σ =

230.94.

True False

4 A continuous uniform distribution U(100, 200) will have the same standard deviation as a continuous uniform distribution
. U(200,300).

True False

5 For a continuous uniform distribution U(200, 400), the parameters are μ = 300 and σ =
. 100.

True False

6. The exponential distribution describes the number of arrivals per unit of

time.

True False

7 The exponential distribution is always skewed right.

.
True False

8. If arrivals follow a Poisson distribution, waiting times follow the exponential

distribution.

True False

9. The triangular distribution is used in "what-if" analysis for business

planning.

True False

10 The triangular distribution is symmetric.

.
True False

11 The triangular distribution T(0, 10, 20) is skewed left.

.
True False

12 A triangular distribution can be skewed either left or right.

.
True False

13 For a continuous random variable, the total area beneath the PDF will be greater than zero but less than
. one.
 True False

14 The exponential distribution is continuous and the Poisson distribution is discrete, yet the two distributions are closely related.
.
True False

15 The mean, median, and mode of a normal distribution will always be the
. same.

True False

16. There is a simple formula for normal areas, but we prefer a table for greater
accuracy.

True False

17 Normal distributions differ only in their means and variances.

.
True False

18 Any normal distribution has a mean of 0 and a standard deviation of 1.

.
True False

19. We would use a normal distribution to model the waiting time until the next Florida hurricane
strike.

True False

20 Experience suggests that 4 percent of all college students had a tonsillectomy. In a sample of 300 college students, we need to
. find the probability that at least 10 had a tonsillectomy. It is acceptable to use the normal distribution to estimate this probability.

True False

21. The normal is a good approximation to the binomial when n is greater than or equal to
10.

True False

22 The true proportion of accounts receivable with some kind of error is 4 percent for Venal Enterprises. If an auditor randomly
. samples 50 accounts receivable, it is acceptable to use the normal approximation to estimate the probability that fewer than two
will contain errors.

True False

23. The normal distribution is a good approximation to the binomial if both π ≥ 10 and n ≥
10.

True False

24 The normal distribution is a good approximation to the binomial if n = 200 and π

. = .03.

True False

25. The normal distribution is a good approximation to the binomial if n = 25 and π

= .50.

True False

26. The exponential distribution can be either right-skewed or left-skewed, depending on

λ

True False

27 The number of lightning strikes in a day in Miami is a continuous random variable.

.
True False

28 The area under a normal curve is 1 only if the distribution is standardized N(0,
. 1).

True False

29 The area under an exponential curve can exceed 1 because the distribution is right-skewed.
.
True False

Multiple Choice Questions

30 A machine dispenses water into a glass. Assuming that the amount of water dispensed follows a continuous uniform distribution
. from 10 ounces to 16 ounces, the average amount of water dispensed by the machine is:

A. 12 ounces.

B. 13 ounces.

C. 14 ounces.

D. 16 ounces.

31 A machine dispenses water into a glass. Assuming that the amount of water dispensed follows a continuous uniform distribution
. from 10 ounces to 16 ounces, the standard deviation of the amount of water dispensed is about:

A. 1.73 ounces.

B. 3.00 ounces.

C. 0.57 ounce.

D. 3.51 ounces.

32 A machine dispenses water into a glass. Assuming that the amount of water dispensed follows a continuous uniform distribution
. from 10 ounces to 16 ounces, what is the probability that 13 or more ounces will be dispensed in a given glass?

A. .1666

B. .3333

C. .5000

D. .6666

33 A random variable X is best described by a continuous uniform distribution from 20 to 45 inclusive. The mean of this distribution
. is:
 A. 30.5.

B. 31.5.

C. 32.5.

D. 33.5.

34 A random variable X is best described by a continuous uniform distribution from 20 to 45 inclusive. The standard deviation of
. this distribution is approximately:

A. 52.1.

B. 32.5.

C. 6.85.

D. 7.22.

35. A random variable X is best described by a continuous uniform distribution from 20 to 45 inclusive. What is P(30 ≤ X ≤
40)?

A. .20

B. .40

C. .60

D. .80

36. The Excel function =800*RAND() would generate random numbers with standard deviation approximately equal
to:

A. 200.

B. 188.

C. 231.

D. 400.

37 The Excel function =40*RAND() would generate random numbers with standard deviation approximately equal
. to

A. 13.33.

B. 20.00.
 C. 11.55.

D. 19.27.

38 If arrivals occur at a mean rate of 3.6 events per hour, the exponential probability of waiting more than 0.5 hour for the next
. arrival is:

A. .2407.

B. .1653.

C. .1222.

D. .5000.

39 If arrivals occur at a mean rate of 3.6 events per hour, the exponential probability of waiting less than 0.5 hour for the next arrival
. is:

A. .7122.

B. .8105.

C. .8347.

D. .7809.

40 If arrivals occur at a mean rate of 2.6 events per minute, the exponential probability of waiting more than 1.5 minutes for the next
. arrival is:

A. .0202.

B. .0122.

C. .0535.

D. .2564.

41 If arrivals occur at a mean rate of 1.6 events per minute, the exponential probability of waiting less than 1 minute for the next
. arrival is:

A. .2019.

B. .7104.

C. .8812.

D. .7981.
42 Bob's z-score for the last exam was 1.52 in Prof. Axolotl's class BIO 417, "Life Cycle of the Ornithorhynchus." Bob said, "Oh,
. good, my score is in the top 10 percent." Assuming a normal distribution of scores, is Bob right?

A. Yes.

B. No.

C. Must have n to answer.

43 The lengths of brook trout caught in a certain Colorado stream are normally distributed with a mean of 14 inches and a standard
. deviation of 3 inches. What proportion of brook trout caught will be between 12 and 18 inches in length?

A. .6563

B. .6826

C. .2486

D. .4082

44 The lengths of brook trout caught in a certain Colorado stream are normally distributed with a mean of 14 inches and a standard
. deviation of 3 inches. The first quartile for the lengths of brook trout would be:

A. 16.01 inches.

B. 11.00 inches.

C. 11.98 inches.

D. 10.65 inches.

45 The lengths of brook trout caught in a certain Colorado stream are normally distributed with a mean of 14 inches and a standard
. deviation of 3 inches. What lower limit should the State Game Commission set on length if it is desired that 80 percent of the
catch may be kept by fishers?

A. 12.80 inches

B. 11.48 inches

C. 12.00 inches

D. 9.22 inches

46 In Melanie's Styling Salon, the time to complete a simple haircut is normally distributed with a mean of 25 minutes and a
. standard deviation of 4 minutes. What percentage of customers require less than 32 minutes for a simple haircut?

A. 95.99 percent
 B. 99.45 percent

C. 97.72 percent

D. 45.99 percent

47 In Melanie's Styling Salon, the time to complete a simple haircut is normally distributed with a mean of 25 minutes and a
. standard deviation of 4 minutes. The slowest quartile of customers will require longer than how many minutes for a simple
haircut?

A. 3(n + 1)/4 minutes

B. 26 minutes

C. 25.7 minutes

D. 27.7 minutes

48 In Melanie's Styling Salon, the time to complete a simple haircut is normally distributed with a mean of 25 minutes and a
. standard deviation of 4 minutes. For a simple haircut, the middle 90 percent of the customers will require:

A. between 18.4 and 31.6 minutes.

B. between 19.9 and 30.1 minutes.

C. between 20.0 and 30.0 minutes.

D. between 17.2 and 32.8 minutes.

49 The area under the normal curve between z = 0 and z = 1 is ______________ the area under the normal curve between z = 1
. and z = 2.

A. less than

B. greater
than

C. equal to

50 The price-earnings ratio for firms in a given industry follows the normal distribution. In this industry, a firm whose price-earnings
. ratio has a standardized value of z = 1.00 is approximately in the highest ______ percent of firms in the industry.

A. 16 percent

B. 34 percent

C. 68 percent

D. 75 percent
51 A student's grade on an examination was transformed to a z value of 0.67. Assuming a normal distribution, we know that she
. scored approximately in the top:

A. 15 percent.

B. 50 percent.

C. 40 percent.

D. 25 percent.

52 The MPG (miles per gallon) for a certain compact car is normally distributed with a mean of 31 and a standard deviation of 0.8.
. What is the probability that the MPG for a randomly selected compact car would be less than 32?

A. 0.3944

B. 0.8944

C. 0.1056

D. 0.5596

53. The probability is .80 that a standard normal random variable is between -z and +z. The value of z is
approximately:

A. 1.28.

B. 1.35.

C. 1.96.

D. 1.45.

54 The time required for a citizen to complete the 2010 U.S. Census "long" form is normally distributed with a mean of 40 minutes
. and a standard deviation of 10 minutes. What proportion of the citizens will require less than one hour?

A. 0.4772

B. 0.9772

C. 0.9974

D. 0.9997

55 The time required for a citizen to complete the 2010 U.S. Census "long" form is normally distributed with a mean of 40 minutes
. and a standard deviation of 10 minutes. The slowest 10 percent of the citizens would need at least how many minutes to
complete the form?
 A. 27.2

B. 35.8

C. 52.8

D. 59.6

56 The time required for a citizen to complete the 2010 U.S. Census "long" form is normally distributed with a mean of 40 minutes
. and a standard deviation of 10 minutes. What is the third quartile (in minutes) for the time required to complete the form?

A. 44.75

B. 46.75

C. 47.50

D. 52.50

57 Exam scores were normal in BIO 200. Jason's exam score was one standard deviation above the mean. What percentile is he
. in?

A. 68 th

B. 75 th

C. 78 th

D. 84 th

58 Compared to the area between z = 1.00 and z = 1.25, the area between z = 2.00 and z = 2.25 in the standard normal
. distribution will be:

A. smaller.

B. larger.

C. the same.

D. impossible to compare without knowing μ and

σ.

59 A large number of applicants for admission to graduate study in business are given an aptitude test. Scores are normally
. distributed with a mean of 460 and standard deviation of 80. What fraction of applicants would you expect to have scores of 600
or above?

A. 0.0401

B. 0.4599
 C. 0.5401

D. 0.0852

60 A large number of applicants for admission to graduate study in business are given an aptitude test. Scores are normally
. distributed with a mean of 460 and standard deviation of 80. What fraction of the applicants would you expect to have a score of
400 or above?

A. 0.2734

B. 0.7734

C. 0.7266

D. 0.7500

61 A large number of applicants for admission to graduate study in business are given an aptitude test. Scores are normally
. distributed with a mean of 460 and standard deviation of 80. The top 2.5 percent of the applicants would have a score of at least
(choose the nearest integer):

A. 606.

B. 617.

C. 600.

D. 646.

62. If the random variable Z has a standard normal distribution, then P(1.25 ≤ Z ≤ 2.17)
is:

A. 0.0906.

B. 0.9200.

C. 0.4700.

D. 0.3944.

63. If the random variable Z has a standard normal distribution, then P(Z ≤ -1.37)
is:

A. 0.9147.

B. 0.4147.

C. 0.5016.
 D. 0.0853.

64 Assume that X is normally distributed with a mean μ = $64. Given that P(X ≥ $75) = 0.2981, we can calculate that the standard
. deviation of X is approximately:

A. $20.76.

B. $13.17.

C. $5.83.

D. $7.05.

65 The standard deviation of a normal random variable X is $20. Given that P(X ≤ $10) = 0.1841. From this we can determine that
. the mean of the distribution is equal to:

A. $13.

B. $26.

C. $20.

D. $28.

66. The random variable X is normally distributed with mean of 80 and variance of 36. The 67 percentile of the distribution
th

is:

A. 72.00.

B. 95.84.

C. 90.00.

D. 82.64.

67 The area under the normal curve between the 20 and 70 percentiles is equal to:
th th

A. 0.7000.

B. 0.5000.

C. 0.9193.

68 The variable in a normal distribution can assume any value between

.

A. -3 and
+3.
 B. -4 and
+4.

C. -1 and
+1.

D. -∞ and +∞.

69. What are the mean and standard deviation for the standard normal
distribution?

A. μ = 0, σ =
0

B. μ = 1, σ =
1

C. μ = 1, σ =
0

D. μ = 0, σ =
1

70 Any two normal curves are the same except for their:
.

A. standard deviations.

B. means.

C. standard deviations and means.

D. standard deviations, means, skewness, and kurtosis.

71 Light bulbs are normally distributed with an average lifetime of 1000 hours and a standard deviation of 250 hours. The
. probability that a light bulb picked at random will last less than 1500 hours is about:

A. 97.72 percent.

B. 95.44 percent.

C. 75.00
percent.

D. 68.00
percent.

72. To convert a normally distributed variable X into a standard Z score we would:

A. subtract the mean from the original observation and divide the result by the
variance.
 B. subtract the mean from the original observation and divide the result by the standard
deviation.

C. add the mean and the original observation, then divide by the variance.

D. subtract the mean from the standard deviation and divide by the
variance.

73 Regarding continuous probability distributions, which statement is

. incorrect?

A. The triangular distribution may be skewed left or right.

B. The uniform distribution is never skewed.

C. The normal distribution is sometimes skewed.

D. The exponential distribution is always skewed right.

74 Which model best describes your waiting time until you get the next nonworking web URL ("This page cannot be displayed") as
. you click on various websites for Florida condo rentals?

A. Triangular

B. Uniform

C. Normal

D. Exponential

75 On average, a major earthquake (Richter scale 6.0 or above) occurs 3 times a decade in a certain California county. What is the
. probability that less than six months will pass before the next earthquake?

A. .1393

B. .8607

C. .0952

D. .9048

76 If the mean time between in-flight aircraft engine shutdowns is 12,500 operating hours, the 90 percentile of waiting times to the
th

. next shutdown will be:

A. 20,180 hours.

B. 28,782 hours.

C. 23,733 hours.
 D. 18,724 hours.

77 On average, 15 minutes elapse between discoveries of fraudulent corporate tax returns in a certain IRS office. What is the
. probability that less than 30 minutes will elapse before the next fraudulent corporate tax return is discovered?

A. .1353

B. .6044

C. .7389

D. .8647

78 If the mean time between unscheduled maintenance of LCD displays in a hospital's CT scan facility is 4,000 operating hours,
. what is the probability of unscheduled maintenance in the next 5,000 hours?

A. .8000

B. .7135

C. .2865

D. .5000

79 A certain assembly line at Vexing Manufacturing Company averages 30 minutes between breakdowns. What is the probability
. that less than 6 minutes will elapse before the next breakdown?

A. .8187

B. .0488

C. .1813

D. .2224

80 A certain assembly line at Vexing Manufacturing Company averages 30 minutes between breakdowns. The median time
. between breakdowns is:

A. 30.0 minutes.

B. 35.7 minutes.

C. 25.4 minutes.

D. 20.8 minutes.

81 Which probability model is most appropriate to describe the waiting time (working days) until an office photocopier breaks down
. (i.e., requires unscheduled maintenance)?
 A. Normal

B. Uniform

C. Exponential

D. Poisson

82 Bob's z-score for the last exam was -1.15 in FIN 417, "Capital Budgeting Strategies." Bob said, "Yipe! My score is within the
. bottom quartile." Assuming a normal distribution, is Bob right?

A. Yes

B. No

C. Must know the class size to answer

83 Exam scores were normal in MIS 200. Jason's exam score was 1.41 standard deviations above the mean. What percentile is he
. in?

A. 68 .
th

B. 75 .
th

C. 84 .
th

D. 92 .
nd

84 Compared to the area between z = 0.50 and z = 0.75, the area between z = 1.50 and z = 1.75 in the standard normal
. distribution will be:

A. smaller

B. larger

C. the same

85 If GMAT scores for applicants at Oxnard Graduate School of Business are N(500, 50), then the top 5 percent of the applicants
. would have a score of at least (choose the nearest integer):

A. 575.

B. 582.

C. 601.

D. 608.
86. If the random variable Z has a standard normal distribution, then P(1.17 ≤ Z ≤ 2.26)
is:

A. 0.1091.

B. 0.1203.

C. 0.2118.

D. 0.3944.

87. If the random variable Z has a standard normal distribution, then P(Z ≤ -1.72)
is:

A. 0.9573.

B. 0.0446.

C. 0.5016.

D. 0.0427.

88 Excel's =100*RAND() function produces continuous random numbers that are uniformly distributed between 0 and 100. The
. standard deviation of this distribution is approximately:

A. 50.00.

B. 28.87.

C. 33.33.

D. 25.00.

89 Excel's =RAND() function produces random numbers that are uniformly distributed between 0 and 1. The mean of this
. distribution is approximately

A. .5000.

B. .2500.

C. .3333.

D. .2887.

90 Excel's =RAND() function produces random numbers that are uniformly distributed from 0 to 1. What is the probability that the
. random number exceeds .75?
 A. 75 percent

B. 50 percent

C. 25 percent

91 Which is the correct Excel formula for the 80 percentile of a distribution that is N(475,
th

. 33)?

A. =NORM.DIST(80,475,33,1
)

B. =NORM.INV(0.80,475,33)

C. =NORM.S.INV((80-475)/33)

92 If arrivals follow a Poisson distribution with mean 1.2 arrivals per minute, find the 75 percentile of waiting times until the next
th

. arrival (i.e., 75 percent below).

A. 1.155 minutes (69.3 seconds)

B. 0.240 minute (14.4 seconds)

C. 1.919 minutes (115.1

seconds)

93 A software developer makes 175 phone calls to its current customers. There is an 8 percent chance of reaching a given
. customer (instead of a busy signal, no answer, or answering machine). The normal approximation of the probability of reaching
at least 20 customers is:

A. .022.

B. .007.

C. .063.

D. .937.

94 For Gardyloo Manufacturing, the true proportion of accounts receivable with some kind of error is .20. If an auditor randomly
. samples 225 accounts receivable, what is the approximate normal probability that 39 or fewer will contain errors?

A. .1797

B. .2097

C. .1587

D. .0544

95 A letter is mailed to a sample of 500 homeowners. Based on past experience, the probability of an undeliverable letter is 0.06.
. The normal approximation to the binomial probability of 40 or more undeliverable letters is:

A. 0.9632

B. 0.0368

C. 0.2305

D. 0.7695

96 In a T-F exam with 100 questions, passing requires a score of at least 60. What is the approximate normal probability that a
. "guesser" will score at least 60 points?

A. .0287

B. .4713

C. .0251

D. .0377

97 A multiple choice exam has 100 questions. Each question has five choices. What would be the approximate probability that a
. "guesser" could achieve a score of 30 or more?

A. 0.0088

B. 0.0062

C. 0.0015

D. 0.4913

98 For which binomial distribution would a normal approximation be most acceptable?

.

A. n = 50, π = 0.05

B. n = 100, π = 0.04

C. n = 40, π = 0.25

D. n = 400, π = 0.02

99 Historically, the default rate on a certain type of commercial loan is 20 percent. If a bank makes 100 of these loans, what is the
. approximate probability that at least 26 will result in default?

A. 0.2000
 B. 0.0668

C. 0.0846

D. 0.0336

100 A company employs 300 employees. Each year, there is a 30 percent turnover rate for employees. We want to do a normal
. approximation to the binomial distribution of the number of employees who leave each year. For this normal approximation, the
mean is ______ and the standard deviation is _____.

A. 90; 63

B. 90; 7.937

C. 90; 30

D. 90; 15

101 The probability that a rental car will be stolen is 0.001. If 25,000 cars are rented from Hertz, what is the normal approximation
. to the probability that fewer than 20 will be stolen?

A. .2577

B. .1335

C. .1128

D. .8335

102 If adult male heights are normally distributed with a mean of 180 cm and a standard deviation of 7 cm, how high should an
. aircraft lavatory door be to ensure that 99.9 percent of adult males will not have to stoop as they enter?

A. 195.7 cm

B. 201.6 cm

C. 207.3 cm

D. 201.4 cm

103 TotCo is developing a new deluxe baby bassinet. If the length of a newborn baby is normally distributed with a mean of 50 cm
. and a standard deviation of 5 cm, what should be the interior length of the bassinet to ensure that 99 percent of newborn
babies will fit, with a safety margin of 15 cm on each end of the bassinet?

A. 95.45 cm

B. 85.22 cm

C. 91.63 cm
 D. 98.92 cm

104. The triangular distribution T(4, 12, 26) has a mean of:

A. 14.

B. 18.

C. 12.

D. 13.

105 The triangular distribution T(0, 10, 20) has a standard deviation
. of:

A. 4.082.

B. 3.775.

C. 3.024.

D. 2.994.

106. The triangular distribution T(5, 23, 62) has a mean of:

A. 23.

B. 30.

C. 33.

D. 35.

107. The triangular distribution T(10, 20, 50) has a standard deviation
of:

A. 9.498.

B. 9.225.

C. 8.498.

D. 7.710.

108 Which statement is incorrect?

.
 A. The triangular distribution always has a single mode.

B. The mean of the triangular distribution is (a + b +

c)/3.

C. The triangular distribution is right-skewed.

109 Bob used a triangular distribution of T(20, 30, 61) to represent his daily commute time (minutes). Which statement is
. incorrect?

A. The distribution is right-

skewed.

B. The mode of the distribution exceeds the

mean.

C. The mean of the distribution is 37.

D. The midrange of the distribution is

40.5.

110 Phyllis used a triangular distribution of T(10, 15, 20) to represent her daily commute time (minutes). Which statement is
. incorrect?

A. The distribution is right-

skewed.

B. The mode of the distribution is at the

mean.

C. The mean of the distribution is 15.

D. The midrange of the distribution is 15.

111. In a continuous distribution:

A. P(X < 5) is the same as P(X ≤

5).

B. P(X < 5) is less than P(X ≤

5).

C. P(X < 5) is more than P(X ≤

5).

112 In a continuous distribution the

.

A. PDF is usually higher than the CDF.

B. CDF is used to find left-tail

probabilities.
 C. PDF shows the area under the curve.

D. CDF is usually the same as the PDF.

113 If the mean waiting time for the next arrival is 12 minutes, what is the median waiting
. time?

A. 7.2 minutes

B. 8.3 minutes

C. 9.1 minutes

D. 12 minutes

114. If the mean waiting time for the next arrival is 18 minutes, what is the first quartile (25 percentile) for waiting times?
th

A. 13 minutes

B. 7.9 minutes

C. 5.2 minutes

D. 3.1 minutes

115 Could this function be a PDF?

.

A. Yes.

B. No.

C. It depends on
x.

116 Could this function be a PDF?

.
 A. Yes.

B. No.

C. It depends on
x.

117 The ages of job applicants for a security guard position are uniformly distributed between 25 and 65. Could a 25-year-old job
. applicant be two standard deviations below the mean (or more than two standard deviations)?

A. Yes.

B. No.

C. Impossible to determine from given information.

118. The figure shows a standard normal N(0, 1) distribution. Find the shaded
area.

A. .6444

B. .7514
 C. .9245

D. .9850

119. The figure shows a standard normal N(0, 1) distribution. Find the shaded
area.

A. .4400

B. .3300

C. .2998

D. .2502

120. The figure shows a standard normal N(0, 1) distribution. Find the z value for the shaded
area.

A. -1.98

B. -1.87

C. -1.75

D. -1.62
121. The figure shows a standard normal N(0, 1) distribution. Find the z value for the shaded
area.

A. -2.17

B. -2.09

C. -1.99

D. -1.94

122 The figure shows a normal N(400, 23) distribution. Find the approximate shaded
. area.

A. .0410

B. .0501

C. .0724

D. .0838

123 The figure shows a normal N(400, 23) distribution. Find the approximate shaded
. area.
 A. .3811

B. .3527

C. .2299

D. .1940

124 The figure shows a normal N(400, 23) distribution. Find the x value for the shaded
. area.

A. 379.1

B. 362.2

C. 355.7

D. 347.6

125 The figure shows a normal N(400, 23) distribution. Find the x value for the shaded
. area.
 A. 412.9

B. 426.7

C. 436.2

D. 440.3

Answer Key

True / False Questions

1. A continuous uniform distribution is always

symmetric.

TRUE

The PDF is the same height for all X values.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Calculate uniform
probabilities.
Topic: Uniform Continuous Distribution

2 The height and width of a continuous uniform distribution's PDF are the same.
.
FALSE

The PDF height must be 1/(b - a) so that the total area is unity.
 AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-02 Calculate uniform
probabilities.
Topic: Uniform Continuous Distribution

3 A continuous uniform distribution U (0, 800) will have μ = 400 and σ = 230.94.
.
TRUE

Apply the formulas for the uniform distribution mean and standard deviation.

NOTE:

 continuous uniform distribution có dạng U (a, b)

where a: lower limit
b: upper limit

 Mean = (0+800)/2 = 400

 SD = ((800-0)^2/12)^(1/2) = 230.94

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-02 Calculate uniform
probabilities.
Topic: Uniform Continuous Distribution

4 A continuous uniform distribution U (100, 200) will have the same standard deviation as a continuous uniform distribution
. U(200,300).

TRUE

In the standard deviation formula, (b - a) is the same for both these examples.
2

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-02 Calculate uniform
probabilities.
Topic: Uniform Continuous Distribution
5. For a continuous uniform distribution U (200, 400), the parameters are μ = 300 and σ =
100.

FALSE

The standard deviation is [(400 - 200) /12] = 57.7.

2 1/2

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-02 Calculate uniform
probabilities.
Topic: Uniform Continuous Distribution

6. The exponential distribution describes the number of arrivals per unit of

time.

FALSE

Arrivals per unit of time would be Poisson (but waiting time is exponential).

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-07 Find the exponential probability for a given
x.
Topic: Exponential Distribution

7 The exponential distribution is always skewed right.

.
TRUE

The PDF clearly shows extreme right-skewness.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-07 Find the exponential probability for a given
x.
Topic: Exponential Distribution

8 If arrivals follow a Poisson distribution, waiting times follow the exponential distribution.
.
TRUE

Poisson arrivals (discrete) imply exponential waiting times (continuous).

Poisson distribution: the number of occurences within a randomly chosen unit of time or space. For eg: the number of patients arriving the
hospital withing a randomly hour.
 Exponential distribution: waiting time for the next occurence. For eg: the waiting time until the next patient.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-07 Find the exponential probability for a given
x.
Topic: Exponential Distribution

9 The triangular distribution is used in "what-if" analysis for business planning.

.
TRUE

Simplicity in visualizing planning scenarios is an attraction of the triangular distribution.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-09 Use the triangular distribution for "what-if" analysis
(optional).
Topic: Triangular Distribution (Optional)

10 The triangular distribution is symmetric.

.
FALSE

Triangular distribution is symmetric only if the mode is at the axis midpoint.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-09 Use the triangular distribution for "what-if" analysis
(optional).
Topic: Triangular Distribution (Optional)

11 The triangular distribution T(0, 10, 20) is skewed left.

.
FALSE

Only left-skewed if the mode is right of the axis midpoint.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-09 Use the triangular distribution for "what-if" analysis
(optional).
Topic: Triangular Distribution (Optional)

12 A triangular distribution can be skewed either left or right.

.
 TRUE

Left-skewed if the mode is right of the axis midpoint, and vice versa.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-09 Use the triangular distribution for "what-if" analysis
(optional).
Topic: Triangular Distribution (Optional)

13 For a continuous random variable, the total area beneath the PDF will be greater than zero but less than
. one.

FALSE

If it is a PDF, the total area must be 1.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Define a continuous random
variable.
Topic: Continuous Probability Distributions

14 The exponential distribution is continuous and the Poisson distribution is discrete, yet the two distributions are closely related.
.
TRUE

Poisson arrivals (discrete) imply exponential waiting times (continuous).

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-07 Find the exponential probability for a given
x.
Topic: Exponential Distribution

15 The mean, median, and mode of a normal distribution will always be the
. same.

TRUE

A normal distribution is perfectly symmetric.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-03 Know the form and parameters of the normal
distribution.
Topic: Normal Distribution
16. There is a simple formula for normal areas, but we prefer a table for greater accuracy.

FALSE

We have a formula for the PDF, but there is no exact formula for areas under the
curve.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-03 Know the form and parameters of the normal
distribution.
Topic: Normal Distribution

17 Normal distributions differ only in their means and variances.

.
TRUE

All normal distributions look the same except for scaling.

AACSB: Analytical Thinking

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Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 07-03 Know the form and parameters of the normal
distribution.
Topic: Normal Distribution

18 Any normal distribution has a mean of 0 and a standard deviation of 1.

.
FALSE

Only the standardized normal is N(0, 1).

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Know the form and parameters of the normal
distribution.
Topic: Normal Distribution

19. We would use a normal distribution to model the waiting time until the next Florida hurricane
strike.

FALSE

Hurricane arrivals might be regarded as Poisson events, so waiting times are exponential.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-07 Find the exponential probability for a given
 x.
Topic: Exponential Distribution

20 Experience suggests that 4 percent of all college students had a tonsillectomy. In a sample of 300 college students, we need to
. find the probability that at least 10 had a tonsillectomy. It is acceptable to use the normal distribution to estimate this probability.

TRUE

The quick rule is nπ ≥ 10 and n(1 - π) ≥ 10, which is the case in this example.

AACSB: Analytical Thinking

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Difficulty: 2 Medium
Learning Objective: 07-06 Use the normal approximation to a binomial or a
Poisson.
Topic: Normal Approximations

21. The normal is a good approximation to the binomial when n is greater than or equal to
10.

FALSE

The quick rule is nπ ≥ 10 and n (1 - π) ≥ 10.

AACSB: Analytical Thinking

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Difficulty: 1 Easy
Learning Objective: 07-06 Use the normal approximation to a binomial or a
Poisson.
Topic: Normal Approximations

22 The true proportion of accounts receivable with some kind of error is 4 percent for Venal Enterprises. If an auditor randomly
. samples 50 accounts receivable, it is acceptable to use the normal approximation to estimate the probability that fewer than two
will contain errors.

FALSE

The quick rule is nπ ≥ 10 and n (1 - π) ≥ 10, which is not fulfilled in this case.

SUMMARY:

BINOMIAL

2 outcomes: contain error and not contain errors.

Π = 4%

n = 50

nπ = 50*4% = 2 (less than 10)

FALSE

(nếu bài toàn hỏi it is acceptable to use the normal approximation to estimate the probability that fewer than two will not
 contain errors thì Π = 1 - 4% = 96%)

AACSB: Analytical Thinking

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Difficulty: 2 Medium
Learning Objective: 07-06 Use the normal approximation to a binomial or a
Poisson.
Topic: Normal Approximations

23. The normal distribution is a good approximation to the binomial if both π ≥ 10 and n ≥
10.

FALSE

The quick rule is nπ ≥ 10 and n(1 - π) ≥ 10.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 07-06 Use the normal approximation to a binomial or a
Poisson.
Topic: Normal Approximations

24 The normal distribution is a good approximation to the binomial if n = 200 and π

. = .03.

FALSE

The quick rule is nπ ≥ 10 and n(1 - π) ≥ 10, which is not fulfilled in this case.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 07-06 Use the normal approximation to a binomial or a
Poisson.
Topic: Normal Approximations

25. The normal distribution is a good approximation to the binomial if n = 25 and π

= .50.

TRUE

The quick rule is nπ ≥ 10 and n(1 - π) ≥ 10, which is fulfilled in this case.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 07-06 Use the normal approximation to a binomial or a
Poisson.
 Topic: Normal Approximations

26. The exponential distribution can be either right-skewed or left-skewed, depending on

λ

FALSE

The PDF of the exponential shows that it is always right-skewed.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 07-07 Find the exponential probability for a given
x.
Topic: Exponential Distribution

27 The number of lightning strikes in a day in Miami is a continuous random variable.

.
FALSE

The "number of …" anything is discrete.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 07-01 Define a continuous random
variable.
Topic: Continuous Probability Distributions

28 The area under a normal curve is 1 only if the distribution is standardized N(0,
. 1).

FALSE

Any normal distribution has a total area of one under the PDF.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Know the form and parameters of the normal
distribution.
Topic: Standard Normal Distribution

29 The area under an exponential curve can exceed 1 because the distribution is right-skewed.
.
FALSE

If it's a PDF, the total area under the PDF is one.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
 Difficulty: 2 Medium
Learning Objective: 07-07 Find the exponential probability for a given
x.
Topic: Exponential Distribution

Multiple Choice Questions

30 A machine dispenses water into a glass. Assuming that the amount of water dispensed follows a continuous uniform distribution
. from 10 ounces to 16 ounces, the average amount of water dispensed by the machine is:

A. 12 ounces.

B. 13 ounces.

C. 14 ounces.

D. 16 ounces.

The mean is halfway between the end points of the distribution.

CONTINUOUS UNIFORM DISTRIBUTION

Lower limit = 10

Upper limit = 16

MEAN?

Mean = (a+b)/2 = (10 + 16)/2 = 13 ounces

AACSB: Analytical Thinking

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Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 07-02 Calculate uniform
probabilities.
Topic: Uniform Continuous Distribution

31 A machine dispenses water into a glass. Assuming that the amount of water dispensed follows a continuous uniform distribution
. from 10 ounces to 16 ounces, the standard deviation of the amount of water dispensed is about:

A. 1.73 ounces.

B. 3.00 ounces.

C. 0.57 ounce.

D. 3.51 ounces.
 The standard deviation is [(16 - 10) /12] = 1.73.
2 1/2

AACSB: Analytical Thinking

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Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-02 Calculate uniform
probabilities.
Topic: Uniform Continuous Distribution

32 A machine dispenses water into a glass. Assuming that the amount of water dispensed follows a continuous uniform distribution
. from 10 ounces to 16 ounces, what is the probability that 13 or more ounces will be dispensed in a given glass?

A. .1666

B. .3333

C. .5000

D. .6666

Half the area is above 13.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-02 Calculate uniform
probabilities.
Topic: Uniform Continuous Distribution

33 A random variable X is best described by a continuous uniform distribution from 20 to 45 inclusive. The mean of this distribution
. is:

A. 30.5.

B. 31.5.

C. 32.5.

D. 33.5.

The mean is halfway between the end points of the distribution.

AACSB: Analytical Thinking

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Difficulty: 1 Easy
Learning Objective: 07-02 Calculate uniform
probabilities.
 Topic: Uniform Continuous Distribution

34 A random variable X is best described by a continuous uniform distribution from 20 to 45 inclusive. The standard deviation of
. this distribution is approximately:

A. 52.1.

B. 32.5.

C. 6.85.

D. 7.22.

The standard deviation is [(45 - 20) /12] = 7.22.

2 1/2

AACSB: Analytical Thinking

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Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-02 Calculate uniform
probabilities.
Topic: Uniform Continuous Distribution

35. A random variable X is best described by a continuous uniform distribution from 20 to 45

inclusive.
What is P (30 ≤ X ≤ 40)?

A. .20

B. .40

C. .60

D. .80

The desired area is 10/25 = .40.

CONTINUOUS UNIFORM DISTRIBUTION

Lower limit = 20

Upper limit = 45

P (30 ≤ X ≤ 40)
APPROACH 2:

P (30 ≤ X ≤ 40) = P (X ≤ 40) – P (X ≤ 30)

P (30 < X < 40) = P (X ≤ 40) – P (X ≤ 30)

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-02 Calculate uniform
probabilities.
Topic: Uniform Continuous Distribution

36. The Excel function =800*RAND() would generate random numbers with standard deviation approximately equal
to:

A. 200.

B. 188.

C. 231.

D. 400.
 The standard deviation is [(800 - 0) /12] = 230.94.
2 1/2

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-02 Calculate uniform
probabilities.
Topic: Uniform Continuous Distribution

37 The Excel function =40*RAND() would generate random numbers with standard deviation approximately equal
. to

A. 13.33.

B. 20.00.

C. 11.55.

D. 19.27.

The standard deviation is [(40 - 0) /12] = 11.55.

2 1/2

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-02 Calculate uniform
probabilities.
Topic: Uniform Continuous Distribution

38 If arrivals occur at a mean rate of 3.6 events per hour, the exponential probability of waiting more than 0.5 hour for the next
. arrival is:

A. .2407.

B. .1653.

C. .1222.

D. .5000.

P(X > .50) = exp(-3.6 × 0.50) = .1653.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-07 Find the exponential probability for a given
x.
 Topic: Exponential Distribution

39 If arrivals occur at a mean rate of 3.6 events per hour, the exponential probability of waiting less than 0.5 hour for the next arrival
. is:

A. .7122.

B. .8105.

C. .8347.

D. .7809.

P(X < .50) = 1 - exp(-3.6 × 0.50) = 1 - .1653 = .8347.

Summary:

Mean arrivals per unit of time = lambda = 3.6 events per hour

P( X < 0.5) = 0.8347

(0.5 is upper limit)

EXPONENTIAL PROBABILITY: probability of waiting less than (more than, at least, at most) … hour for the next arrival.

PDF: P (X = 30)

CDF: P (X<0.5) ( khi có P (X > 0.5) thì mình chuyển đổi về 1 - P (X<0.5))

(PHẢI ĐỌC KĨ ĐỀ XEM NÓ LÀ PDF HAY CDF ĐỂ KHI ĐÓ CHỌN TRUE HOẶC FALSE CHO CÔNG THỨC EXCEL)

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-07 Find the exponential probability for a given
x.
Topic: Exponential Distribution

40 If arrivals occur at a mean rate of 2.6 events per minute, the exponential probability of waiting more than 1.5 minutes for the next
. arrival is:

A. .0202.
 B. .0122.

C. .0535.

D. .2564.

P(X > 1.5) = exp(-2.6 × 1.50) = .0202.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-07 Find the exponential probability for a given
x.
Topic: Exponential Distribution

41 If arrivals occur at a mean rate of 1.6 events per minute, the exponential probability of waiting less than 1 minute for the next
. arrival is:

A. .2019.

B. .7104.

C. .8812.

D. .7981.

(X < 1) = 1 - exp(-1.6 × 1) = 1 - .2019 = .7981.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-07 Find the exponential probability for a given
x.
Topic: Exponential Distribution

42 Bob's z-score for the last exam was 1.52 in Prof. Axolotl's class BIO 417, "Life Cycle of the Ornithorhynchus." Bob said, "Oh,
. good, my score is in the top 10 percent." Assuming a normal distribution of scores, is Bob right?

A. Yes.

B. No.

C. Must have n to answer.

P(Z < 1.52) = .9357. (93.57% percentile: đứng thứ 93.57% từ dưới lên)
 Top 10%: cao thứ 10% từ trên xuống

AACSB: Analytical Thinking

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Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or
Excel.
Topic: Standard Normal Distribution

43 The lengths of brook trout caught in a certain Colorado stream are normally distributed with a mean of 14 inches and a standard
. deviation of 3 inches. What proportion of brook trout caught will be between 12 and 18 inches in length?

A. .6563

B. .6826

C. .2486

D. .4082

APPROACH 1:

P(12 < X < 18) = P (-.67 < Z < 1.33) = .6568 (from Appendix C) or .6563 using Excel.

Lower limit of z = (12-14)/3 = -0.67

Upper limit of z = (18-14)/3 = 1.33

P(12 < X < 18) = P (-.67 < Z < 1.33) = P (Z < 1.33) – P (Z <-0.67) = .9082 - .2514 = .6568

APPROACH 2

SUMMARY:

NORMAL DISTRIBUTION

Mean = 14 inches

SD = 3 inches

P (12 < X < 18) = ? = P (X<18) – P (X<12)

(DÙNG EXCEL CHO CÔNG THỨC NORMDIST THÌ KHÔNG CẦN CHUYỂN VỀ Z, NHƯNG NẾU DÙNG C2 HOẶC C1 THÌ PHẢI CHUYỂN ĐỔI X VỀ Z)
EXCEL: P (X<18) = NORMDIST (18,14,3, TRUE)

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
 Difficulty: 2 Medium
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or
Excel.
Topic: Standard Normal Distribution

44 The lengths of brook trout caught in a certain Colorado stream are normally distributed with a mean of 14 inches and a standard
. deviation of 3 inches. The first quartile for the lengths of brook trout would be:

A. 16.01 inches.

B. 11.00 inches.

C. 11.98 inches.

D. 10.65 inches.

Using Excel =NORM.INV(.25,14,3) = 11.98, or Q = 14 - 0.675(3) = 11.975 using Appendix C.

1

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-05 Solve for z or x for a given normal probability using tables or
Excel.
Topic: Standard Normal Distribution

45 The lengths of brook trout caught in a certain Colorado stream are normally distributed with a mean of 14 inches and a standard
. deviation of 3 inches. What lower limit should the State Game Commission set on length if it is desired that 80 percent of the
catch may be kept by fishers?

A. 12.80 inches

B. 11.48 inches

C. 12.00 inches

D. 9.22 inches

Using Excel =NORM.INV(.20,14,3) = 11.475, or X = 14 - 0.84(3) = 11.48 using Appendix C.

AACSB: Analytical Thinking

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Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-05 Solve for z or x for a given normal probability using tables or
Excel.
Topic: Standard Normal Distribution

46 In Melanie's Styling Salon, the time to complete a simple haircut is normally distributed with a mean of 25 minutes and a
. standard deviation of 4 minutes. What percentage of customers require less than 32 minutes for a simple haircut?
 A. 95.99 percent

B. 99.45 percent

C. 97.72 percent

D. 45.99 percent

Using Excel =NORMDIST(32,25,4,1) = 0.9599, or use z = (32 - 25)/4 = 1.75 with Appendix C.

AACSB: Analytical Thinking

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Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or
Excel.
Topic: Standard Normal Distribution

47 In Melanie's Styling Salon, the time to complete a simple haircut is normally distributed with a mean of 25 minutes and a
. standard deviation of 4 minutes. The slowest quartile of customers will require longer than how many minutes for a simple
haircut?

A. 3(n + 1)/4 minutes

B. 26 minutes

C. 25.7 minutes

D. 27.7 minutes

Using Excel =NORM.INV(.75,25,4) = 27.698, or Q = 25 + 0.675(4) = 27.7 using Appendix C.

3

AACSB: Analytical Thinking

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Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-05 Solve for z or x for a given normal probability using tables or
Excel.
Topic: Standard Normal Distribution

48 In Melanie's Styling Salon, the time to complete a simple haircut is normally distributed with a mean of 25 minutes and a
. standard deviation of 4 minutes. For a simple haircut, the middle 90 percent of the customers will require:

A. between 18.4 and 31.6 minutes.

B. between 19.9 and 30.1 minutes.

C. between 20.0 and 30.0 minutes.

 D. between 17.2 and 32.8 minutes.

The 90 percent range is μ ± 1.645σ.

AACSB: Analytical Thinking

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Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-05 Solve for z or x for a given normal probability using tables or
Excel.
Topic: Standard Normal Distribution

49 The area under the normal curve between z = 0 and z = 1 is ______________ the area under the normal curve between z = 1
. and z = 2.

A. less than

B. greater than

C. equal to

The standard normal PDF grows closer to the axis as z increases to the right of zero.

AACSB: Analytical Thinking

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Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or
Excel.
Topic: Standard Normal Distribution

50 The price-earnings ratio for firms in a given industry follows the normal distribution. In this industry, a firm whose price-earnings
. ratio has a standardized value of z = 1.00 is approximately in the highest ______ percent of firms in the industry.

A. 16 percent

B. 34 percent

C. 68 percent

D. 75 percent

About 15.86 percent of the area is above one standard deviation.

AACSB: Analytical Thinking

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Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or
Excel.
Topic: Standard Normal Distribution
51 A student's grade on an examination was transformed to a z value of 0.67. Assuming a normal distribution, we know that she
. scored approximately in the top:

A. 15 percent.

B. 50 percent.

C. 40 percent.

D. 25 percent.

P(Z > 0.67) = 1 - P(Z < 0.67) = 1 - .2514 = .7486.

AACSB: Analytical Thinking

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Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or
Excel.
Topic: Standard Normal Distribution

52 The MPG (miles per gallon) for a certain compact car is normally distributed with a mean of 31 and a standard deviation of 0.8.
. What is the probability that the MPG for a randomly selected compact car would be less than 32?

A. 0.3944

B. 0.8944

C. 0.1056

D. 0.5596

P(X < 32) = P(Z < 1.25) = .8944.

AACSB: Analytical Thinking

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Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or
Excel.
Topic: Standard Normal Distribution

53. The probability is .80 that a standard normal random variable is between -z and +z. The value of z is
approximately:

A. 1.28.

B. 1.35.
 C. 1.96.

D. 1.45.

For tail areas of .1000 we would use z = 1.282.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-05 Solve for z or x for a given normal probability using tables or
Excel.
Topic: Standard Normal Distribution

54 The time required for a citizen to complete the 2010 U.S. Census "long" form is normally distributed with a mean of 40 minutes
. and a standard deviation of 10 minutes. What proportion of the citizens will require less than one hour?

A. 0.4772

B. 0.9772

C. 0.9974

D. 0.9997

P(X < 60) = P(Z < 2.00) = .9772.

AACSB: Analytical Thinking

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Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or
Excel.
Topic: Standard Normal Distribution

55 The time required for a citizen to complete the 2010 U.S. Census "long" form is normally distributed with a mean of 40 minutes
. and a standard deviation of 10 minutes. The slowest 10 percent of the citizens would need at least how many minutes to
complete the form?

A. 27.2

B. 35.8

C. 52.8

D. 59.6

Using Excel =NORM.INV(.90,40,10) = 52.82, or 40 + 1.282(10) = 52.82 using Appendix C.

 AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-05 Solve for z or x for a given normal probability using tables or
Excel.
Topic: Standard Normal Distribution

56 The time required for a citizen to complete the 2010 U.S. Census "long" form is normally distributed with a mean of 40 minutes
. and a standard deviation of 10 minutes. What is the third quartile (in minutes) for the time required to complete the form?

A. 44.75

B. 46.75

C. 47.50

D. 52.50

Using Excel =NORM.INV(.75,40,10) = 46.75, or Q = 40 + 0.675(10) = 46.75 using Appendix C.

3

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-05 Solve for z or x for a given normal probability using tables or
Excel.
Topic: Standard Normal Distribution

57 Exam scores were normal in BIO 200. Jason's exam score was one standard deviation above the mean. What percentile is he
. in?

A. 68 th

B. 75 th

C. 78 th

D. 84 th

About 15.87 percent of the area lies above one standard deviation.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or
Excel.
Topic: Standard Normal Distribution

58 Compared to the area between z = 1.00 and z = 1.25, the area between z = 2.00 and z = 2.25 in the standard normal
. distribution will be:

A. smaller.

B. larger.

C. the same.

D. impossible to compare without knowing μ and

σ.

The normal PDF approaches the axis as z increases beyond zero.

AACSB: Analytical Thinking

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Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or
Excel.
Topic: Standard Normal Distribution

59 A large number of applicants for admission to graduate study in business are given an aptitude test. Scores are normally
. distributed with a mean of 460 and standard deviation of 80. What fraction of applicants would you expect to have scores of 600
or above?

A. 0.0401

B. 0.4599

C. 0.5401

D. 0.0852

P(X > 600) = P(Z > 1.75) = .0401.

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Difficulty: 2 Medium
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or
Excel.
Topic: Standard Normal Distribution

60 A large number of applicants for admission to graduate study in business are given an aptitude test. Scores are normally
. distributed with a mean of 460 and standard deviation of 80. What fraction of the applicants would you expect to have a score of
400 or above?

A. 0.2734

B. 0.7734
 C. 0.7266

D. 0.7500

P(X > 400) = P(Z > -0.75) = .7734.

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Difficulty: 2 Medium
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or
Excel.
Topic: Standard Normal Distribution

61 A large number of applicants for admission to graduate study in business are given an aptitude test. Scores are normally
. distributed with a mean of 460 and standard deviation of 80. The top 2.5 percent of the applicants would have a score of at least
(choose the nearest integer):

A. 606.

B. 617.

C. 600.

D. 646.

Using z = 1.96, we get X = 460 + 1.96 × 80 = 616.8.

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Difficulty: 2 Medium
Learning Objective: 07-05 Solve for z or x for a given normal probability using tables or
Excel.
Topic: Standard Normal Distribution

62. If the random variable Z has a standard normal distribution, then P(1.25 ≤ Z ≤ 2.17)
is:

A. 0.0906.

B. 0.9200.

C. 0.4700.

D. 0.3944.

P(Z ≤ 2.17) - P(Z ≤ 1.25) = .0906.

 AACSB: Analytical Thinking
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Difficulty: 2 Medium
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or
Excel.
Topic: Standard Normal Distribution

63. If the random variable Z has a standard normal distribution, then P(Z ≤ -1.37)
is:

A. 0.9147.

B. 0.4147.

C. 0.5016.

D. 0.0853.

From Appendix C we get the left-tail area of .0853.

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Difficulty: 1 Easy
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or
Excel.
Topic: Standard Normal Distribution

64 Assume that X is normally distributed with a mean μ = $64. Given that P(X ≥ $75) = 0.2981, we can calculate that the standard
. deviation of X is approximately:

A. $20.76.

B. $13.17.

C. $5.83.

D. $7.05.

For a right-tail area of .2981, we need z = -.53. So with x = 75, we set z = (x - μ)/σ and solve for σ.

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Difficulty: 3 Hard
Learning Objective: 07-05 Solve for z or x for a given normal probability using tables or
Excel.
Topic: Standard Normal Distribution

65 The standard deviation of a normal random variable X is $20. Given that P(X ≤ $10) = 0.1841. From this we can determine that
. the mean of the distribution is equal to:

A. $13.

B. $26.

C. $20.

D. $28.

For a left-tail area of .1841, we need z = -.90. With x = 10, we set z = (x - μ)/σ and solve for μ.

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Difficulty: 3 Hard
Learning Objective: 07-05 Solve for z or x for a given normal probability using tables or
Excel.
Topic: Standard Normal Distribution

66. The random variable X is normally distributed with mean of 80 and variance of 36. The 67 percentile of the distribution
th

is:

A. 72.00.

B. 95.84.

C. 90.00.

D. 82.64.

Since P(Z < 0.44) = .6700, (from Appendix C), we get 80 + 0.44(6) = 82.64.

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Difficulty: 2 Medium
Learning Objective: 07-05 Solve for z or x for a given normal probability using tables or
Excel.
Topic: Standard Normal Distribution

67 The area under the normal curve between the 20 and 70 percentiles is equal to:
th th

A. 0.7000.

B. 0.5000.

C. 0.9193.
 Logically, this must be .70 - .20 = .50, as you can verify from Appendix C.

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Difficulty: 3 Hard
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or
Excel.
Topic: Standard Normal Distribution

68. The variable in a normal distribution can assume any value between

A. -3 and
+3.

B. -4 and
+4.

C. -1 and
+1.

D. -∞ and +∞.

Almost all the area is within -3 and +3, but the curve never quite touches the z-
axis.

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Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-03 Know the form and parameters of the normal
distribution.
Topic: Normal Distribution

69. What are the mean and standard deviation for the standard normal
distribution?

A. μ = 0, σ =
0

B. μ = 1, σ =
1

C. μ = 1, σ =
0

D. μ = 0, σ =
1

It's a standardized normal distribution, so the mean must be zero.

 AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
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Difficulty: 1 Easy
Learning Objective: 07-03 Know the form and parameters of the normal
distribution.
Topic: Standard Normal Distribution

70 Any two normal curves are the same except for their:
.

A. standard deviations.

B. means.

C. standard deviations and means.

D. standard deviations, means, skewness, and kurtosis.

We write N(μ, σ) to show the similar form of all normals.

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Difficulty: 1 Easy
Learning Objective: 07-03 Know the form and parameters of the normal
distribution.
Topic: Normal Distribution

71 Light bulbs are normally distributed with an average lifetime of 1000 hours and a standard deviation of 250 hours. The
. probability that a light bulb picked at random will last less than 1500 hours is about:

A. 97.72
percent.

B. 95.44 percent.

C. 75.00
percent.

D. 68.00
percent.

P(Z < 1500) = P(Z < 2.00) = .9772 from Appendix C (or from Excel).

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Difficulty: 2 Medium
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or
Excel.
Topic: Standard Normal Distribution
72 To convert a normally distributed variable X into a standard Z score we would:
.

A. subtract the mean from the original observation and divide the result by the
variance.

B. subtract the mean from the original observation and divide the result by the standard
deviation.

C. add the mean and the original observation, then divide by the variance.

D. subtract the mean from the standard deviation and divide by the
variance.

Review the z-score transformation.

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Difficulty: 1 Easy
Learning Objective: 07-03 Know the form and parameters of the normal
distribution.
Topic: Standard Normal Distribution

73 Regarding continuous probability distributions, which statement is

. incorrect?

A. The triangular distribution may be skewed left or right.

B. The uniform distribution is never skewed.

C. The normal distribution is sometimes skewed.

D. The exponential distribution is always skewed right.

Review the characteristics of these four distributions.

AACSB: Analytical Thinking

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Difficulty: 2 Medium
Learning Objective: 07-03 Know the form and parameters of the normal
distribution.
Topic: Normal Distribution

74 Which model best describes your waiting time until you get the next nonworking web URL ("This page cannot be displayed") as
. you click on various websites for Florida condo rentals?

A. Triangular
 B. Uniform

C. Normal

D. Exponential

Waiting time until the next event resembles an exponential distribution.

AACSB: Analytical Thinking

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Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 07-07 Find the exponential probability for a given
x.
Topic: Exponential Distribution

75 On average, a major earthquake (Richter scale 6.0 or above) occurs 3 times a decade in a certain California county. What is the
. probability that less than six months will pass before the next earthquake?

A. .1393

B. .8607

C. .0952

D. .9048

Set λ = 3/120 = 0.025 earthquake/month so P(X < 6) = 1 - exp(-0.025 × 6) = 1 - .8607 = .1393.

NOTE: a decade = a randomly chosen unit of time.

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Difficulty: 3 Hard
Learning Objective: 07-07 Find the exponential probability for a given
x.
Topic: Exponential Distribution

76 If the mean time between in-flight aircraft engine shutdowns is 12,500 operating hours, the 90 percentile of waiting times to the
th

. next shutdown will be:

A. 20,180 hours.

B. 28,782 hours.

C. 23,733 hours.

D. 18,724 hours.
 Set λ = 1/12500 and solve for x in left-tail area of 1 - exp(-λx) = .90 by taking logs of both sides.

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Difficulty: 3 Hard
Learning Objective: 07-08 Solve for x for a given exponential
probability.
Topic: Exponential Distribution

77 On average, 15 minutes elapse between discoveries of fraudulent corporate tax returns in a certain IRS office. What is the
. probability that less than 30 minutes will elapse before the next fraudulent corporate tax return is discovered?

A. .1353

B. .6044

C. .7389

D. .8647

P(X < 30) = 1 - exp(-λx) = 1 - exp(-(1/15) × 30) = 1 - .1353 = .8647.

AACSB: Analytical Thinking

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Difficulty: 3 Hard
Learning Objective: 07-07 Find the exponential probability for a given
x.
Topic: Exponential Distribution

78 If the mean time between unscheduled maintenance of LCD displays in a hospital's CT scan facility is 4,000 operating hours,
. what is the probability of unscheduled maintenance in the next 5,000 hours?

A. .8000

B. .7135

C. .2865

D. .5000

P(X < 5000) = 1 - exp(-λx) = 1 - exp(-(1/4000) × 5000) = 1 - .2865 = .7135.

AACSB: Analytical Thinking

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Difficulty: 2 Medium
Learning Objective: 07-07 Find the exponential probability for a given
x.
 Topic: Exponential Distribution

79 A certain assembly line at Vexing Manufacturing Company averages 30 minutes between breakdowns. What is the probability
. that less than 6 minutes will elapse before the next breakdown?

A. .8187

B. .0488

C. .1813

D. .2224

(X < 6) = 1 - exp(-λx) = 1 - exp(-(1/30) × 6) = 1 - .8187 = .1813.

What is the probability that less than 6 minutes will elapse before the next breakdown? 6 minutes: waiting time (exponential)

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Difficulty: 3 Hard
Learning Objective: 07-07 Find the exponential probability for a given
x.
Topic: Exponential Distribution

80 A certain assembly line at Vexing Manufacturing Company averages 30 minutes between breakdowns. The median time
. between breakdowns is:

A. 30.0 minutes.

B. 35.7 minutes.

C. 25.4 minutes.

D. 20.8 minutes.

Set λ = 1/30 and solve for x in right-tail area of 1 - exp(-λx) = .50 by taking logs of both sides.

AACSB: Analytical Thinking

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Difficulty: 3 Hard
Learning Objective: 07-08 Solve for x for a given exponential
probability.
Topic: Exponential Distribution

81 Which probability model is most appropriate to describe the waiting time (working days) until an office photocopier breaks down
. (i.e., requires unscheduled maintenance)?
 A. Normal

B. Uniform

C. Exponential

D. Poisson

Poisson breakdowns suggest exponential waiting time.

AACSB: Analytical Thinking

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Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-07 Find the exponential probability for a given
x.
Topic: Exponential Distribution

82 Bob's z-score for the last exam was -1.15 in FIN 417, "Capital Budgeting Strategies." Bob said, "Yipe! My score is within the
. bottom quartile." Assuming a normal distribution, is Bob right?

A. Yes

B. No

C. Must know the class size to answer

The bottom quartile would be below z = -.675 so Bob is indeed below that point.

AACSB: Analytical Thinking

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Difficulty: 2 Medium
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or
Excel.
Topic: Standard Normal Distribution

83 Exam scores were normal in MIS 200. Jason's exam score was 1.41 standard deviations above the mean. What percentile is he
. in?

A. 68 .
th

B. 75 .
th

C. 84 .
th

D. 92 .
nd

P (Z < 1.41) = .9207.

 NOTE: percentile: % từ thấp lên cao, từ dưới lên trên.

Eg: Smith’score is in the 30th percentile in the class: top 30% từ dưới lên.

1.41 standard deviations above the mean, which means z score is 1.41. Then use C2 and C1 to calculate prop.

90th percentile: top 10% (quan trọng là phải biết vị trí đó từ dưới lên hay từ trên xuống)

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Difficulty: 1 Easy
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or
Excel.
Topic: Standard Normal Distribution

84 Compared to the area between z = 0.50 and z = 0.75, the area between z = 1.50 and z = 1.75 in the standard normal
. distribution will be:

A. smaller

B. larger

C. the same

The normal PDF approaches the axis as z increases beyond zero, so areas get smaller.

AACSB: Analytical Thinking

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Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or
Excel.
Topic: Standard Normal Distribution

85 If GMAT scores for applicants at Oxnard Graduate School of Business are N (500, 50), then the top 5 percent of the applicants
. would have a score of at least (choose the nearest integer):

A. 575.

B. 582.

C. 601.

D. 608.

The top 5 percent would require z = 1.645, so x = 500 + 1.645(50) = 582.25.

AACSB: Analytical Thinking

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Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-05 Solve for z or x for a given normal probability using tables or
Excel.
Topic: Standard Normal Distribution

86. If the random variable Z has a standard normal distribution, then P(1.17 ≤ Z ≤ 2.26)
is:

A. 0.1091.

B. 0.1203.

C. 0.2118.

D. 0.3944.
 Subtract P(Z ≤ 2.26) - P(Z ≤ 1.17).

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Difficulty: 2 Medium
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or
Excel.
Topic: Standard Normal Distribution

87. If the random variable Z has a standard normal distribution, then P(Z ≤ -1.72)
is:

A. 0.9573.

B. 0.0446.

C. 0.5016.

D. 0.0427.

Use Appendix C or Excel =NORM.S.DIST(-1.72,1).

AACSB: Analytical Thinking

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Difficulty: 1 Easy
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or
Excel.
Topic: Standard Normal Distribution

88 Excel's =100*RAND() function produces continuous random numbers that are uniformly distributed between 0 and 100. The
. standard deviation of this distribution is approximately:

A. 50.00.

B. 28.87.

C. 33.33.

D. 25.00.

The standard deviation of a uniform is [(b - a) /12] = [(100 - 0) /12] .

2 1/2 2 1/2

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Difficulty: 2 Medium
Learning Objective: 07-02 Calculate uniform
probabilities.
 Topic: Uniform Continuous Distribution

89 Excel's =RAND() function produces random numbers that are uniformly distributed between 0 and 1. The mean of this
. distribution is approximately

A. .5000.

B. .2500.

C. .3333.

D. .2887.

The mean is halfway between the end points.

AACSB: Analytical Thinking

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Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 07-02 Calculate uniform
probabilities.
Topic: Uniform Continuous Distribution

90 Excel's =RAND() function produces random numbers that are uniformly distributed from 0 to 1. What is the probability that the
. random number exceeds .75?

A. 75 percent

B. 50 percent

C. 25 percent

This is the upper 25 percent.

AACSB: Analytical Thinking

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Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 07-02 Calculate uniform
probabilities.
Topic: Uniform Continuous Distribution

91. Which is the correct Excel formula for the 80 percentile of a distribution that is N (475,
th

33)?

A. =NORM.DIST(80,475,33,1
)

B. =NORM.INV(0.80,475,33)
 C. =NORM.S.INV((80-475)/33)

Review Excel functions in Appendix J.

AACSB: Technology
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-05 Solve for z or x for a given normal probability using tables or
Excel.
Topic: Standard Normal Distribution

92 If arrivals follow a Poisson distribution with mean 1.2 arrivals per minute, find the 75 percentile of waiting times until the next
th

. arrival (i.e., 75 percent below).

A. 1.155 minutes (69.3 seconds)

B. 0.240 minute (14.4 seconds)

C. 1.919 minutes (115.1

seconds)

Set λ = 1.2 and solve for x in right-tail area of exp(-λx) = .25 by taking logs of both sides.

AACSB: Analytical Thinking

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Difficulty: 3 Hard
Learning Objective: 07-08 Solve for x for a given exponential
probability.
Topic: Exponential Distribution

93 A software developer makes 175 phone calls to its current customers. There is an 8 percent chance of reaching a given
. customer (instead of a busy signal, no answer, or answering machine). The normal approximation of the probability of reaching
at least 20 customers is:

A. .022.

B. .007.

C. .063.

D. .937.

Set n = 175 and π = .08. Calculate μ = nπ = (175)(.08) = 14 and σ = [nπ(1 - π)] = [175(.08)(1 - .08)] = 3.588872. Use x = 19.5
1/2 1/2

(with the continuity correction) and calculate the binomial P(X ≥ 20) ≈ P(z ≥ 1.532515) using z = (x - μ)/σ = 1.532515.

AACSB: Analytical Thinking

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 Difficulty: 3 Hard
Learning Objective: 07-06 Use the normal approximation to a binomial or a
Poisson.
Topic: Normal Approximations

94 For Gardyloo Manufacturing, the true proportion of accounts receivable with some kind of error is .20. If an auditor randomly
. samples 225 accounts receivable, what is the approximate normal probability that 39 or fewer will contain errors?

A. .1797

B. .2097

C. .1587

D. .0544

Set μ = nπ and σ = [nπ(1 - π)] and convert x = 39.5 (using the continuity correction) to a z score with z = (x - μ)/σ. Set n = 225
1/2

and π = .20. Calculate μ = nπ = (225)(.20) = 45 and σ = [nπ(1 - π)] = [225(.20)(1 - .20)] = 6.000. Use x = 39.5 (with the
1/2 1/2

continuity correction) and calculate the binomial P(X ≤ 39) ≈ P(z ≤ -.916667) using z = (x - μ)/σ = -.916667.

AACSB: Analytical Thinking

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Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-06 Use the normal approximation to a binomial or a
Poisson.
Topic: Normal Approximations

95 A letter is mailed to a sample of 500 homeowners. Based on past experience, the probability of an undeliverable letter is 0.06.
. The normal approximation to the binomial probability of 40 or more undeliverable letters is:

A. 0.9632

B. 0.0368

C. 0.2305

D. 0.7695

Set n = 500 and π = .06. Calculate μ = nπ = (500)(.06) = 30 and σ = [nπ(1 - π)] = [500(.06)(1 - .06)] = 5.31037. Use x = 39.5
1/2 1/2

(with the continuity correction) and calculate the binomial P(X ≥ 40) ≈ P(z ≥ 1.78895) using z = (x - μ)/σ = 1.78895.

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Difficulty: 3 Hard
Learning Objective: 07-06 Use the normal approximation to a binomial or a
Poisson.
Topic: Normal Approximations

96 In a T-F exam with 100 questions, passing requires a score of at least 60. What is the approximate normal probability that a
. "guesser" will score at least 60 points?

A. .0287

B. .4713

C. .0251

D. .0377

A guesser would have a 50 percent chance of a correct answer, so we set π = .50. There are n = 100 questions, so we calculate
μ = nπ = (100)(.50) = 50 and σ = [nπ(1 - π)] = [100(.50)(1 - .50)] = 5. Use x = 59.5 (with the continuity correction) and
1/2 1/2

calculate the binomial P(X ≥ 60) ≈ P(z ≥ 1.90) using z = (x - μ)/σ = 1.90.

AACSB: Analytical Thinking

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Difficulty: 3 Hard
Learning Objective: 07-06 Use the normal approximation to a binomial or a
Poisson.
Topic: Normal Approximations

97 A multiple choice exam has 100 questions. Each question has five choices. What would be the approximate probability that a
. "guesser" could achieve a score of 30 or more?

A. 0.0088

B. 0.0062

C. 0.0015

D. 0.4913

A guesser would have a 20 percent chance of a correct answer (1 out of 5), so we set π = .20. There are n = 100 questions, so
we calculate μ = nπ = (100)(.20) = 20 and σ = [nπ(1 - π)] = [100(.20)(1 - .20)] = 4. Use x = 29.5 (with the continuity correction)
1/2 1/2

and calculate the binomial P(X ≥ 30) ≈ P(z ≥ 2.375) using z = (x - μ)/σ = 2.375.

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Difficulty: 3 Hard
Learning Objective: 07-06 Use the normal approximation to a binomial or a
Poisson.
Topic: Normal Approximations

98 For which binomial distribution would a normal approximation be most acceptable?

.

A. n = 50, π = 0.05

B. n = 100, π = 0.04
 C. n = 40, π = 0.25

D. n = 400, π = 0.02

We want nπ ≥ 10 and n(1 - π) ≥ 10.

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Difficulty: 2 Medium
Learning Objective: 07-06 Use the normal approximation to a binomial or a
Poisson.
Topic: Normal Approximations

99 Historically, the default rate on a certain type of commercial loan is 20 percent. If a bank makes 100 of these loans, what is the
. approximate probability that at least 26 will result in default?

A. 0.2000

B. 0.0668

C. 0.0846

D. 0.0336

Set n = 100 and π = .20. Calculate μ = nπ = (100)(.20) = 20 and σ = [nπ(1 - π)] = [100(.20)(1 - .20)] = 4. Use x = 25.5 (with the
1/2 1/2

continuity correction) and calculate the binomial P(X ≥ 26) ≈ P(z ≥ 1.375) using z = (x - μ)/σ = 1.375.

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Difficulty: 3 Hard
Learning Objective: 07-06 Use the normal approximation to a binomial or a
Poisson.
Topic: Normal Approximations

100 A company employs 300 employees. Each year, there is a 30 percent turnover rate for employees. We want to do a normal
. approximation to the binomial distribution of the number of employees who leave each year. For this normal approximation, the
mean is ______ and the standard deviation is _____.

A. 90; 63

B. 90; 7.937

C. 90; 30

D. 90; 15

Use n = 300 and π = .30, and then calculate μ = nπ and σ = [nπ(1 - π)] . 1/2
 AACSB: Analytical Thinking
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Difficulty: 2 Medium
Learning Objective: 07-06 Use the normal approximation to a binomial or a
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Topic: Normal Approximations

101 The probability that a rental car will be stolen is 0.001. If 25,000 cars are rented from Hertz, what is the normal approximation
. to the probability that fewer than 20 will be stolen?

A. .2577

B. .1335

C. .1128

D. .8335

Set n = 25,000 and π = .001. Calculate μ = nπ = (25000)(.001) = 25 and σ = [nπ(1 - π)] = [25000(.001)(1 - .001)] = 4.9975.
1/2 1/2

Use x = 19.5 (with the continuity correction) and calculate the binomial P(X < 20) ≈ P(z < -1.10055) using z = (x - μ)/σ = -
1.10055.

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Difficulty: 3 Hard
Learning Objective: 07-06 Use the normal approximation to a binomial or a
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Topic: Normal Approximations

102 If adult male heights are normally distributed with a mean of 180 cm and a standard deviation of 7 cm, how high should an
. aircraft lavatory door be to ensure that 99.9 percent of adult males will not have to stoop as they enter?

A. 195.7 cm

B. 201.6 cm

C. 207.3 cm

D. 201.4 cm

With Excel we get =NORM.INV(.999,180,7) = 201.63, or Appendix C with z = 3.09.

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Learning Objective: 07-05 Solve for z or x for a given normal probability using tables or
Excel.
Topic: Standard Normal Distribution
103 TotCo is developing a new deluxe baby bassinet. If the length of a newborn baby is normally distributed with a mean of 50 cm
. and a standard deviation of 5 cm, what should be the interior length of the bassinet to ensure that 99 percent of newborn
babies will fit, with a safety margin of 15 cm on each end of the bassinet?

A. 95.45 cm

B. 85.22 cm

C. 91.63 cm

D. 98.92 cm

With Excel we get =NORM.INV(.99,50,5)+30 = 91.63, or Appendix C with z = 2.33.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-05 Solve for z or x for a given normal probability using tables or
Excel.
Topic: Standard Normal Distribution

104. The triangular distribution T(4, 12, 26) has a mean of:

A. 14.

B. 18.

C. 12.

D. 13.

Mean is (4 + 12 + 26)/3.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 07-09 Use the triangular distribution for "what-if" analysis
(optional).
Topic: Triangular Distribution (Optional)

105 The triangular distribution T(0, 10, 20) has a standard deviation of:
.

A. 4.082.

B. 3.775.
 C. 3.024.

D. 2.994.

Set a = 0, b = 10, c = 20, and use the triangular standard deviation formula σ = [(a + b + c - ab - ac - bc)/18] = 4.082.
2 2 2 1/2

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-09 Use the triangular distribution for "what-if" analysis
(optional).
Topic: Triangular Distribution (Optional)

106. The triangular distribution T(5, 23, 62) has a mean of:

A. 23.

B. 30.

C. 33.

D. 35.

Mean is (5 + 23 + 62)/3.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 07-09 Use the triangular distribution for "what-if" analysis
(optional).
Topic: Triangular Distribution (Optional)

107 The triangular distribution T(10, 20, 50) has a standard deviation of:
.

A. 9.498.

B. 9.225.

C. 8.498.

D. 7.710.

Set a = 10, b = 20, c = 50, and use the triangular standard deviation formula σ = [(a + b + c - ab - ac - bc)/18] = 8.498.
2 2 2 1/2

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
 Learning Objective: 07-09 Use the triangular distribution for "what-if" analysis
(optional).
Topic: Triangular Distribution (Optional)

108 Which statement is incorrect?

.

A. The triangular distribution always has a single mode.

B. The mean of the triangular distribution is (a + b +

c)/3.

C. The triangular distribution is right-skewed.

The triangular distribution may be skewed right or left, and is symmetric only if the mode is halfway between a and c. Review
properties of the triangular distribution.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 07-09 Use the triangular distribution for "what-if" analysis
(optional).
Topic: Triangular Distribution (Optional)

109 Bob used a triangular distribution of T(20, 30, 61) to represent his daily commute time (minutes). Which statement is
. incorrect?

A. The distribution is right-

skewed.

B. The mode of the distribution exceeds the

mean.

C. The mean of the distribution is 37.

D. The midrange of the distribution is

40.5.

This triangular distribution is right-skewed. The mean is (20 + 30 + 61)/3 = 37, which exceeds the mode b = 30. It would be
helpful to sketch a graph of the PDF.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-09 Use the triangular distribution for "what-if" analysis
(optional).
Topic: Triangular Distribution (Optional)

110 Phyllis used a triangular distribution of T(10, 15, 20) to represent her daily commute time (minutes). Which statement is
. incorrect?
 A. The distribution is right-skewed.

B. The mode of the distribution is at the

mean.

C. The mean of the distribution is 15.

D. The midrange of the distribution is 15.

The distribution is symmetric if the mode b lies halfway between the end points. In this example, (a + c)/2 = (10 + 20)/2 = 15,
so the mode b = 15 is halfway between the minimum and maximum.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-09 Use the triangular distribution for "what-if" analysis
(optional).
Topic: Triangular Distribution (Optional)

111. In a continuous distribution:

A. P(X < 5) is the same as P(X ≤

5).

B. P(X < 5) is less than P(X ≤

5).

C. P(X < 5) is more than P(X ≤

5).

A point has no area in a continuous CDF.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-01 Define a continuous random
variable.
Topic: Continuous Probability Distributions

112. In a continuous distribution the

A. PDF is usually higher than the CDF.

B. CDF is used to find left-tail

probabilities.

C. PDF shows the area under the curve.

 D. CDF is usually the same as the PDF.

The CDF shows P(X ≤ x). Review definitions of PDF and CDF.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-01 Define a continuous random
variable.
Topic: Continuous Probability Distributions

113 If the mean waiting time for the next arrival is 12 minutes, what is the median waiting
. time?

A. 7.2 minutes

B. 8.3 minutes

C. 9.1 minutes

D. 12 minutes

Set λ = 1/12 minute per arrival and take logs of both sides of exp(-λx) = .50 to solve for x.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-08 Solve for x for a given exponential
probability.
Topic: Exponential Distribution

114. If the mean waiting time for the next arrival is 18 minutes, what is the first quartile (25 percentile) for waiting times?
th

A. 13 minutes

B. 7.9 minutes

C. 5.2 minutes

D. 3.1 minutes

Set λ = 1/18 minute per arrival and take logs of both sides of exp(-λx) = .75 to solve for x.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
 Learning Objective: 07-08 Solve for x for a given exponential
probability.
Topic: Exponential Distribution

115 Could this function be a PDF?

.

A. Yes.

B. No.

C. It depends on
x.

Area = 1/2 × base × height = .500, which is not 1, so it cannot be a PDF.

AACSB: Analytical Thinking

Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-01 Define a continuous random
variable.
Topic: Continuous Probability Distributions

116 Could this function be a PDF?

.
 A. Yes.

B. No.

C. It depends on
x.

Area = base × height = 2, which is not 1, so it cannot be a PDF.

AACSB: Analytical Thinking

Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-01 Define a continuous random
variable.
Topic: Continuous Probability Distributions

117 The ages of job applicants for a security guard position are uniformly distributed between 25 and 65. Could a 25-year-old job
. applicant be two standard deviations below the mean (or more than two standard deviations)?

A. Yes.

B. No.

C. Impossible to determine from given information.

Since σ = [(65 - 25) /12] = 11.54, we can see that 25 is not 2σ below the mean of 45.
2 1/2

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-02 Calculate uniform
probabilities.
Topic: Uniform Continuous Distribution

118 The figure shows a standard normal N(0, 1) distribution. Find the shaded area.
.
 A. .6444

B. .7514

C. .9245

D. .9850

Appendix C.2 gives 1 - P(z < -2.17) = 1 - .0150 = 0.9750 =1-NORM.S.DIST(-

2.17,1).

AACSB: Analytical Thinking

Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or
Excel.
Topic: Standard Normal Distribution

119 The figure shows a standard normal N(0, 1) distribution. Find the shaded area.
.

A. .4400

B. .3300

C. .2998

D. .2502

Appendix C.2. gives 1 - P(z < .44) = 1 - .6700 = .3300 =1-NORM.S.DIST(0.44,1).

AACSB: Analytical Thinking

Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or
Excel.
Topic: Standard Normal Distribution

120. The figure shows a standard normal N(0, 1) distribution. Find the z value for the shaded
 area.

A. -1.98

B. -1.87

C. -1.75

D. -1.62

Appendix C.2 gives P(z < -1.75) = .0401 or use Excel =NORM.S.INV(0.04) = -1.75.

AACSB: Analytical Thinking

Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-05 Solve for z or x for a given normal probability using tables or
Excel.
Topic: Standard Normal Distribution

121. The figure shows a standard normal N(0, 1) distribution. Find the z value for the shaded
area.

A. -2.17
 B. -2.09

C. -1.99

D. -1.94

Appendix C.2 gives P(z < -2.17) = .0150 or use Excel =NORM.S.INV(0.015) = -2.17.

AACSB: Analytical Thinking

Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 07-05 Solve for z or x for a given normal probability using tables or
Excel.
Topic: Standard Normal Distribution

122 The figure shows a normal N(400, 23) distribution. Find the approximate shaded area.
.

A. .0410

B. .0501

C. .0724

D. .0838

z = (440 - 400)/23 = 1.739, so Appendix C.2 gives 1 - P(z < 1.74) = 1 - .9591 = .0409, or from Excel =1-
NORM.DIST(440,400,23,1) = .0410.

AACSB: Analytical Thinking

Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or
Excel.
Topic: Standard Normal Distribution

123 The figure shows a normal N(400, 23) distribution. Find the approximate shaded area.
.
 A. .3811

B. .3527

C. .2299

D. .1940

z = (417 - 400)/23 = 0.7391, so Appendix C.2 gives 1 - P(z < 0.74) = 1 - .7704 = .2296, or from Excel =1-
NORM.DIST(417,400,23,1) = .2299.

AACSB: Analytical Thinking

Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-04 Find the normal probability for a given z or x using tables or
Excel.
Topic: Standard Normal Distribution

124 The figure shows a normal N(400, 23) distribution. Find the x value for the shaded area.
.

A. 379.1

B. 362.2
 C. 355.7

D. 347.6

From Appendix C.2 we get P(z < -1.645) = .05, so x = µ + zσ = 400 - 1.645(23) = 362.2, or from Excel
=NORM.INV(0.05,400,23) = 362.2.

AACSB: Analytical Thinking

Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-05 Solve for z or x for a given normal probability using tables or
Excel.
Topic: Normal Distribution

125 The figure shows a normal N(400, 23) distribution. Find the x value for the shaded area.
.

A. 412.9

B. 426.7

C. 436.2

D. 440.3

From Appendix C.2 we get P(z > 1.75) = .0401, so x = µ + zσ = 400 + 1.75(23) = 440.3, or from Excel
=NORM.INV(0.96,400,23) = 440.3.

AACSB: Analytical Thinking

Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-05 Solve for z or x for a given normal probability using tables or
Excel.
Topic: Standard Normal Distribution