QUESTION 1

Assume that your favorite football team has two games left in the season. The outcome of each game can be win, lose, or tie. What is the total number of possible outcomes?

	a.	6
	b.	12
	c.	2
	d.	9

QUESTION 2

If P(A) = 0.85, P(A) = 0.72,and P(AB) = 0.66, then P(B) =

	a.	0.53
	b.	0.15
	c.	0.28
	d.	none of the answers is correct

QUESTION 3

If A and B are independent events with P(A) = 0.4 and P(B) = 0.6, then P(AB) =

	a.	0.24
	b.	0.76
	c.	1.00
	d.	0.20

QUESTION 4

If A and B are mutually exclusive events with P(A) = 0.3 and P(B) = 0.5, then P(AB) =

	a.	0.8
	b.	0.10
	c.	0.2
	d.	0.15

QUESTION 5

The addition law is potentially helpful when we are interested in computing the probability of

	a.	conditional probability
	b.	the union of two events
	c.	the intersection of two events
	d.	independent events

QUESTION 6

If a penny is tossed four times and comes up "heads" all four times, what is the probability of "heads" on the fifth toss?

	a.	100%
	b.	0%
	c.	1/32
	d.	50%

QUESTION 7

An experiment consists of three steps: There are four possible results on the first step, three possible results on the second step, and two possible results on the last step. What is the total number of experimental outcomes in this experiment?

	a.	36
	b.	14
	c.	24
	d.	9

QUESTION 8

Of five letters (A, B, C, D, E), two letters are to be selected at random. How many possible selections are there if order is important?

	a.	20
	b.	10
	c.	7
	d.	5!

QUESTION 9

Of five letters (A, B, C, D, E), two letters are to be selected at random. How many possible selections are there if order is not important?

	a.	5!
	b.	10
	c.	20
	d	7

QUESTION 10

A computer based log-in password must contain 2 letters and 3 numbers. The two letters appear in the first two spots followed by the 3 numbers. How many different passwords are possible?

	a.	468,000
	b.	625,000
	c.	676,000
	d.	492,804

QUESTION 11

An electronics firm manufactures three models of stereo receivers, two cassette decks, four speakers and three CD players. When the four types of components are sold together, they form a "system." How many different systems can the electronic firm offer?

	a	72
	b	144
	c	36
	d	18

QUESTION 12

There are two letters C and D. If repetitions such as CC are permitted, how many permutations are possible?

	a	0
	b	8
	c	1
	d	4

QUESTION 13

A builder has agreed not to erect all "look alike" homes in a new subdivision. Five exterior designs are offered to potential homebuyers. The builder has standardized three interior plans that can be incorporated in any of the five exteriors. How many different ways are the exterior and interior plans offered to potential homebuyers?

	a	8
	b	10
	c	30
	d	15

QUESTION 14

What does (6!2!) / (4!3!)equal?

	a	10
	b	36
	c	640
	d	120

QUESTION 15

When are two events mutually exclusive?

	a	They overlap on a Venn diagram
	b	If one event occurs, then the other cannot
	c	Probability of one affects the probability of the other
	d	They both happen at the same time

QUESTION 16

According to which classification or type of probability are the events equally likely?

	a	Subjective
	b	Classical
	c	Mutually exclusive
	d	Empirical

QUESTION 17

The first card selected from a standard 52-card deck was a king. If it is returned to the deck, what is the probability that a king will be drawn on the second selection?

	a	7.7%
	b	25%
	c	33%
	d	9.23%

QUESTION 18

When two or more events can occur concurrently it is called

	a	joint probability
	b	conditional probability
	c	venndiagram
	d	empirical probability

A survey of top executives revealed that 35% of them regularly read Time magazine, 20% read Newsweek and 40% read Macleans. Ten percent read both Time and Macleans. What is the probability that a particular top executive reads either Time or Macleans regularly?

	a	65
	b	85
	c	55
	d	45

QUESTION 20

When applying the rule of addition for mutually exclusive events, the joint probability is:

	a	0.5
	b	1
	c	unknown
	d	0

QUESTION 21

A. Stahl and Baker decided to form a partnership. Stahl contributed equipment (book value

$81,000), inventory (paid $30,000), and $10,000 cash. The equipment and inventory have a current market value of $42,000 and $22,500, respectively. Stahl also had a debt of $26,000

for the equipment. Baker contributed office equipment (book value $32,000) and cash of

$66,000. The current market value of the office equipment is $16,000. The two partners fail to agree on a profit-and-loss-sharing ratio. For the first month (June), the partnership lost $4,400.

1.	How much of this loss goes to Stahl? How much goes to Baker?
2.	The partners withdrew no assets during June. What is each partner's Capital balance at June 30? Prepare a T-account for each partner's Capital.