Question 1

Meagan Davies manages a portfolio of 200 common stocks. Her staff classified the portfolio stocks by 'industry sector' and 'investment objective'.

Which of the following is NOT true?

Select one:

a. Growth and Income are complementary events.

b. Airlines and Healthcare are collectively exhaustive.

c. Electronics and Healthcare are mutually exclusive.

d. Electronics and Growth are dependent.

Question 2

Mark Sims is exploring the characteristics of stock market investors. He found that sixty per cent of all investors have a net worth exceeding $1,000,000; 20% of all investors use an online brokerage; and 10% of all investors a have net worth exceeding $1,000,000 and use an online brokerage. An investor is selected randomly, and E is the event 'net worth exceeds $1,000,000', and O is the event 'uses an online brokerage'. Which of the following is true?

Select one:

a. E and O are independent.

b. E and O are collectively exhaustive.

c. E and O are mutually exclusive.

d. E and O are dependent.

Question 3

A baseball player has a 300 batting average (i.e. there is a 30% chance of a hit on any at bat). What is the probability that this player gets hits on each of his next 2 at bats and then makes an out on the next at bat?

Select one:

a. 0.063

b. 0.090

c. 0.670

d. 0.210

Question 4

Given P(A) = 0.25, P(B) = 0.40, P(A  B) = 0.10. Find P(A  B).

Select one:

a. 0.55 

b. 0.45

c. 0.65

d. 0.75

Question 5

If an event is in the intersection of X and Y, then this event is _______.

Select one:

a. not in the union of X and Y

b. not in X

c. in both X and Y

d. not in Y

Question 6

Given P(A) = 0.40, P(B) = 0.50, P(A  B) = 0.15. Find P(B|A).

Select one:

a. 0.30

b. 0.80

c. 0.375 

d. 0.20

Question 7

Meagan Davies manages a portfolio of 200 common stocks. Her staff classified the portfolio stocks by 'industry sector' and 'investment objective'.

If a stock is selected randomly from Meagan's portfolio, P(Airlines|Income) = _______.

Select one:

a. 0.25

b. 0.67

c. 0.40

d. 0.10

Question 8

In a set of 100 purchasing transactions, two transactions violated (V) company procurement policies and the remaining ninety-eight complied (C) with company policies. An auditor randomly selects four of the 100 transactions without replacement, and classifies each as violated (V) or complied (C). Which of the following is NOT an elementary event for this experiment?

Select one:

a. (V, C, V, C)

b. (C, V, C, C)

c. (V, C, V, V)

d. (C, C, C, C) 

Question 9

Which of the following is NOT a legitimate probability value?

Select one:

a. 15/16

b. 0.23

c. 4/3 

d. 0.67

Question 10

Given P(A) = 0.25, P(B) = 0.40, P(A  B) = 0.10. Find P(B|A).

Select one:

a. 0.65

b. 0.50 

c. 0.40

d. 0.20

Question 11

Let A be the event that a student is enrolled in an accounting course, and let S be the event that a student is enrolled in a statistics course. It is known that 30% of all students are enrolled in an accounting course and 40% of all students are enrolled in statistics. Included in these numbers are 15% who are enrolled in both statistics and accounting. A student is randomly selected, and it is found that the student is enrolled in accounting. What is the probability that this student is also enrolled in statistics?

Select one:

a. 0.75 

b. 0.375

c. 0.50

d. 0.15

Question 12

Meagan Davies manages a portfolio of 200 common stocks. Her staff classified the portfolio stocks by 'industry sector' and 'investment objective'.

If a stock is selected randomly from Meagan's portfolio, P(Growth) = _______.

Select one:

a. 0.75 

b. 0.50

c. 0.83

d. 0.67

Question 13

Adam Shapiro, Director of Human Resources, is exploring employee absenteeism at Plain Power Plant. 10% of all plant employees work in the finishing department; 20% of all plant employees are absent excessively; and 7% of all plant employees work in the finishing department and are absent excessively. If a plant employee is selected randomly, and F is the event 'works in the finishing department', then P(F) = _____________.

Select one:

a. 0.07

b. 0.13

c. 0.10 

d. 0.20

Question 14

A used-car dealer wishes to investigate the relation between the gender of the buyer and type of vehicle purchased. The following joint probability table was developed from the dealer's reco rds for the previous year.

P(Female4WD) = _____________.

Select one:

a. 0.10

b. 0.40

c. 0.30

d. 0.12

Question 15

The list of all elementary events for an experiment is called _______.

Select one:

a. the event union

b. the sample space 

c. the population space

d. the exhaustive list

Question 16

Adam Shapiro, Director of Human Resources, is exploring employee absenteeism at Plain Power Plant. 10% of all plant employees work in the finishing department; 20% of all plant employees are absent excessively; and 2% of all plant employees work in the finishing department and are absent excessively. A plant employee is selected randomly; F is the event 'works in the finishing department'; and A is the event 'is absent excessively'. Which of the following is true?

Select one:

a. A and F are independent. 

b. A and F are collectively exhaustive.

c. A and F are dependent.

d. A and F are mutually exclusive.

Question 17

The joint probability of X and Y is also referred to as _______.

Select one:

a. the marginal probability of X and Y

b. the intersection of X and Y

c. the probability of X given Y

d. the union of X and Y

Question 18

Given P(A) = 0.40, P(B) = 0.50, P(A  B) = 0.15. Find P(A B).

Select one:

a. 0.75

b. 1.05

c. 0.90

d. 0.65

Question 19

An outcome of an experiment is called _______.

Select one:

a. a probability

b. a priori elements

c. a complement

d. an event 

Question 20

Adam Shapiro, Director of Human Resources, is exploring employee absenteeism at Plain Power Plant. Ten per cent of all plant employees work in the finishing department; 20% of all plant employees are absent excessively; and 7% of all plant employees work in the finishing department and are absent excessively. A plant employee is selected randomly; F is the event 'works in the finishing department'; and A is the event 'is absent excessively'. P(A F) = _____________.

Select one:

a. 0.07

b. 0.20

c. 0.10

d. 0.23