1. If you roll a pair of standard dice, what’s the probability that the total will be an odd number less than six?
a. 0.083
b. 0.167
c. 0.25
d. 0.5

2. You are taking a multiple-choice test that awards you one point for a correct answer and penalizes you ¼ point for an incorrect answer. If you have to make a random guess and there are four possible answers, what is the expected value of guessing?
a. 1 point
b. 0.25 points
c. -0.25 points
d. -1 point

3. Your company has a customer list that includes 200 people. Of those 200, your market research indicates that 140 of them hate receiving coupon offers whereas the remainder really likes them. If you send a coupon mailer to one customer at random, what’s the probability that he or she will value receiving the coupon?
a. 0.3
b. 0.6
c. 0.70
d. 1.4

4. You’ve just decided to add a new line to your manufacturing plant. Compute the expected loss/profit from the line addition if you estimate the following:
There’s a 70% chance that profit will increase by $100,000.
There’s a 20% chance that profit will remain the same.
There’s a 10% chance that profit will decrease by $15,000.
a. Gain of $100,000
b. Gain of $71,500
c. Loss of $15,000
d. Gain of $68,500

5. You have two types of buyers for your product. The first type values your product at $10; the second values it at $6. Forty percent of buyers are of the first type ($10 value); 60% are of the second type ($6 value). What price maximizes your expected profit contribution?
a. $10
b. $6
c. $7.60
d. $8