Mathematics
Class Frequency
2 up to 4 21
4 up to 6 59
6 up to 8 81
8 up to 10 21
a.
Calculate the population mean. (Round your answer to 2 decimal places.)
Population mean
b.
Calculate the population variance and the population standard deviation. (Round your intermediate calculations to 4 decimal places and final answers to 2 decimal places.)
Population variance
Population standard deviation
rev: 07_31_2013_QC_32713
31.
Which of the following variables is not continuous?
Time of a flight between Atlanta and Chicago
Height of NBA players
The number of obtained heads when a fair coin is tossed 20 times
Average temperature in the month of July in Orlando
32.
The one-year return (in %) for 24 mutual funds is as follows:
–10.7 –1.4 0.9 6.1 –15.9 –7.5
21.5 –9.6 4.5 11.1 14.5 4.7
–8.4 –8.4 19.5 14.9 29.3 7.7
22.0 24.8 –0.4 11.1 5.0 –11.0
PictureClick here for the Excel Data File
a.
Construct a frequency distribution using classes of –20 up to –10, –10 up to 0, etc.
Class (in %) Frequency
–20 up to –10
–10 up to 0
0 up to 10
10 up to 20
20 up to 30
Total
b.
Construct the relative frequency, the cumulative frequency, and the cumulative relative frequency distributions. (Round “relative frequency” and “cumulative relative frequency” answers to 3 decimal places.)
Class (in %) Relative
Frequency Cumulative
Frequency Cumulative
Relative Frequency
–20 up to –10
–10 up to 0
0 up to 10
10 up to 20
20 up to 30
Total
c-1. How many of the funds had returns of at least 20% but less than 30%?
Number of funds
c-2. How many of the funds had returns of 0% or more?
Number of funds
d-1.
What percent of the funds had returns of at least –10% but less than 0%? (Round your answer to 1 decimal place.)
Percent of funds
d-2.
What percent of the funds had returns less than 20%? (Round your answer to 1 decimal place.)
Percent of funds
rev: 06_24_2013_QC_31991, 07_05_2013_QC_32367
©2015 McGraw-Hill Education. All rights reserved.
33.
Investment advisors recommend risk reduction through international diversification. International investing allows you to take advantage of the potential for growth in foreign economies, particularly in emerging markets. Janice Wong is considering investment in either Europe or Asia. She has studied these markets and believes that both markets will be influenced by the U.S. economy, which has a 16% chance for being good, a 57% chance for being fair, and a 27% chance for being poor. Probability distributions of the returns for these markets are given in the accompanying table.
State of the
U.S. Economy Returns
in Europe Returns
in Asia
Good 14% 28%
Fair 5% 7%
Poor −12% −10%
a.
Find the expected value and the standard deviation of returns in Europe and Asia. (Round your intermediate calculations to 4 decimal places and final answers to 2 decimal places.)
Europe Asia
Expected value % %
Standard deviation
b. What will Janice pick as an investment if she is risk neutral?
Investment in Europe
Investment in Asia
rev: 08_07_2013_QC_33420
34.
Consider the following probabilities: P(Ac) = 0.32, P(B) = 0.58, and P(A ∩ Bc) = 0.25.
a. Find P(A | Bc). (Do not round intermediate calculations. Round your answer to 2 decimal places.)
P(A | Bc)
b. Find P(Bc | A). (Do not round intermediate calculations. Round your answer to 3 decimal places.)
P(Bc | A)
c. Are A and B independent events?
Yes because P(A | Bc) = P(A).
Yes because P(A ∩ Bc) ≠ 0.
No because P(A | Bc) ≠ P(A).
No because P(A ∩ Bc) ≠ 0.
rev: 08_06_2013_QC_32707
35.
The probabilities that stock A will rise in price is 0.64 and that stock B will rise in price is 0.36. Further, if stock B rises in price, the probability that stock A will also rise in price is 0.56.
a.
What is the probability that at least one of the stocks will rise in price? (Round your answer to 2 decimal places.)
Probability
b. Are events A and B mutually exclusive?
Yes because P(A | B) = P(A).
Yes because P(A ∩ B) = 0.
No because P(A | B) ≠ P(A).
No because P(A ∩ B) ≠ 0.
c. Are events A and B independent?
Yes because P(A | B) = P(A).
Yes because P(A ∩ B) = 0.
No because P(A | B) ≠ P(A).
No because P(A ∩ B) ≠ 0.
rev: 08_06_2013_QC_32707
36.
A sample of patients arriving at Overbrook Hospital’s emergency room recorded the following body temperature readings over the weekend:
102.6 99.8 100.7 100.9 100.5 102.4 101.3 99.2 100.5 100.9
99.8 100.3 99.8 100.5 100.9 100.7 100.3 100.2 99.6 99.7
PictureClick here for the Excel Data File
a. Construct a stem-and-leaf diagram.
Stem Leaf
b. Interpret the stem-and-leaf diagram.
The distribution is Positively Skewed.
The distribution is Negatively Skewed.
The distribution is symmetric.
37.
A professor has learned that nine students in her class of 24 will cheat on the exam. She decides to focus her attention on eleven randomly chosen students during the exam.
a.
What is the probability that she finds at least one of the students cheating? (Round your intermediate calculations and final answers to 4 decimal places.)
Probability
b.
What is the probability that she finds at least one of the students cheating if she focuses on twelve randomly chosen students? (Round your intermediate calculations and final answers to 4 decimal places.)
Probability
rev: 08_07_2013_QC_33420
38.
At the end of a semester, college students evaluate their instructors by assigning them to one of the following categories: Excellent, Good, Average, Below Average, and Poor. The measurement scale is a(n) ____________.
nominal scale
ratio scale
ordinal scale
interval scale
39.
Consider the following contingency table.
B Bc
A 23 21
Ac 30 26
a.
Convert the contingency table into a joint probability table. (Round your intermediate calculations and final answers to 4 decimal places.)
B
Bc
Total
A
Ac
Total
b. What is the probability that A occurs? (Round your intermediate calculations and final answer to 4 decimal places.)
Probability
c. What is the probability that A and B occur? (Round your intermediate calculations and final answer to 4 decimal places.)
Probability
d.
Given that B has occurred, what is the probability that A occurs? (Round your intermediate calculations and final answer to 4 decimal places.)
Probability
e.
Given that Ac has occurred, what is the probability that B occurs? (Round your intermediate calculations and final answer to 4 decimal places.)
Probability
f. Are A and B mutually exclusive events?
Yes because P(A | B) ≠ P(A).
Yes because P(A ∩ B) ≠ 0.
No because P(A | B) ≠ P(A).
No because P(A ∩ B) ≠ 0.
g. Are A and B independent events?
Yes because P(A | B) ≠ P(A).
Yes because P(A ∩ B) ≠ 0.
No because P(A | B) ≠ P(A).
No because P(A ∩ B) ≠ 0.
rev: 08_06_2013_QC_32707, 11_10_2013_QC_38348
40.
Consider the following returns for two investments, A and B, over the past four years:
Investment 1: 9% 10% –7% 15%
Investment 2: 7% 9% –16% 14%
a-1.
Calculate the mean for each investment. (Round your answers to 2 decimal places.)
Mean
Investment 1 percent
Investment 2 percent
a-2.
Which investment provides the higher return?
Investment 2
Investment 1
b-1.
Calculate the standard deviation for each investment. (Round your answers to 2 decimal places.)
Standard
Deviation
Investment 1
Investment 2
b-2.
Which investment provides less risk?
Investment 1
Investment 2
c-1.
Given a risk-free rate of 1.2%, calculate the Sharpe ratio for each investment. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Sharpe Ratio
Investment 1
Investment 2
c-2. Which investment has performed better?
Investment 2
Investment 1
rev: 07_31_2013_QC_32713, 11_10_2013_QC_38348
41.
Which of the following represents a population and a sample from that population?
Freshmen at St. Joseph’s University and basketball players at St. Joseph’s University
Teachers in a high school and members of the parent teacher group
Residents of Albany, New York, and registered voters in Albany, New York
Fans at a concert who purchase t-shirts and fans at a concert who purchase soda
42.
(Use computer) Assume that X is a hypergeometric random variable with N = 54, S = 21, and n = 8. Calculate the following probabilities. (Round your answers to 4 decimal places.)
a. P(X = 6)
b. P(X ≥ 2)
c. P(X ≤ 7)
43.
Which scales of data measurement are associated with quantitative data?
Interval and ratio
Nominal and ordinal
Ratio and nominal
Ordinal and interval
44.
Which of the following is a quantitative variable?
All of the Answers
House size
House price
House age
45.
(Use computer) A committee of 39 members consists of 21 men and 18 women. A subcommittee consisting of 13 randomly selected members will be formed.
a.
What are the expected number of men and women in the subcommittee?
Expected
Number
Men
Women
b.
What is the probability that at least four of the members in the subcommittee will be women? (Round your answer to 4 decimal places.)
Probability
46.
The following relative frequency distribution was constructed from a population of 450. Calculate the population mean, the population variance, and the population standard deviation. (Round your intermediate calculations to 4 decimal places and final answers to 2 decimal places.)
Class Relative Frequency
−20 up to −10 0.10
−10 up to 0 0.22
0 up to 10 0.36
10 up to 20 0.32
Population mean
Population variance
Population standard deviation
rev: 07_31_2013_QC_32713
47.
A recent survey of 200 small firms (annual revenue less than $10 million) asked whether an increase in the minimum wage would cause the firm to decrease capital spending. Possible responses to the survey question were: “Yes,” “No,” or “Don’t Know.” These data are best classified as ____________.
ratio scale
nominal scale
interval scale
ordinal scale
48.
A manager of a local retail store analyzes the relationship between advertising and sales by reviewing the store’s data for the previous six months.
Advertising (in $100s) Sales (in $1,000s)
274 198
67 55
66 54
65 53
276 200
236 200
PictureClick here for the Excel Data File
a.
Calculate the mean of advertising and the mean of sales. (Round your answers to 2 decimal places.)
Mean
Advertising
Sales
b.
Calculate the standard deviation of advertising and the standard deviation of sales. (Round your answers to 2 decimal places.)
Standard Deviation
Advertising
Sales
c-1. Calculate the covariance between advertising and sales. (Round your answer to 2 decimal places.)
Covariance
c-2.
Interpret the covariance between advertising and sales.
No correlation
Positive correlation
Negative correlation
d-1.
Calculate the correlation coefficient between advertising and sales. (Round your answer to 2 decimal places.)
Correlation coefficient
d-2.
Interpret the correlation coefficient between advertising and sales.
Weak positive correlation
Strong negative correlation
Strong positive correlation
No correlation
Weak negative correlation
rev: 07_31_2013_QC_32713
©2015 McGraw-Hill Education. All rights reserved.
49.
(Use computer) Assume that X is a Poisson random variable with μ = 24. Calculate the following probabilities. (Round your intermediate calculations and final answers to 4 decimal places.)
a. P(X ≤ 19)
b. P(X = 21)
c. P(X > 26)
d. P(21 ≤ X ≤ 31)
rev: 08_07_2013_QC_33420
50.
Let P(A) = 0.54, P(B) = 0.25, and P(A ∩ B) = 0.22.
a. Are A and B independent events?
Yes because P(A | B) = P(A).
Yes because P(A ∩ B) ≠ 0.
No because P(A | B) ≠ P(A).
No because P(A ∩ B) ≠ 0.
b. Are A and B mutually exclusive events?
Yes because P(A | B) = P(A).
Yes because P(A ∩ B) ≠ 0.
No because P(A | B) ≠ P(A).
No because P(A ∩ B) ≠ 0.
c. What is the probability that neither A nor B takes place? (Round your answer to 2 decimal places.)
Probability
rev: 08_06_2013_QC_32707