Set A. Probability

QUESTION 1

1. Assume that Gina is allocating her budget optimally between two products. If the MU of product X is 40 and its price is $8, what must be the price of product Y if its MU is 60?

		$7.50.
		$12.
		$16.
		$40.
		$300.

QUESTION 2

1. What is meant by the termutility?

		A measure of a product's usefulness.
		A measure of necessity.
		The satisfaction or pleasure derived from the consumption of a product.
		The benefit derived from the production of a product.

QUESTION 3

1. What will happen if MUA/PA>MUB/PB?

		The price of A will be forced to drop.
		The price of B will be forced to drop.
		The consumer will purchase more of product A.
		The consumer will purchase more of product B.

QUESTION 4

1. Under which of the following circumstances will consumers' surplus be greatest?

		When price is high and demand is elastic.
		When price is low and demand is inelastic.
		When price is low and demand is elastic.
		When price is high and demand is inelastic.

QUESTION 5

1. What is the term for the selling of an identical product at a different price to different customers for reasons other than cost?

		Price discrimination.
		Product substitution.
		Marginal utility.
		Consumer surplus.

QUESTION 1

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

1. 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

1. 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

1. 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

1. 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

1. 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

1. 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

1. 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

1. 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

1. 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

1. 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?

		72
		144
		36
		18

QUESTION 12

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

		0
		8
		1
		4

QUESTION 13

1. 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?

		8
		10
		30
		15

QUESTION 14

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

		10
		36
		640
		120

QUESTION 15

1. When are two events mutually exclusive?

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

QUESTION 16

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

		Subjective
		Classical
		Mutually exclusive
		Empirical

QUESTION 17

1. 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?

		7.7%
		25%
		33%
		9.23%

QUESTION 18

1. When two or more events can occur concurrently it is called

		joint probability
		conditional probability
		venndiagram
		empirical probability

1. 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?

		65
		85
		55
		45

QUESTION 20

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

		0.5
		1
		unknown
		0

Set B. Probability

QUESTION 1

1. Based on the information in the table, answer questions 1 to 10 about 300 college students and their selected major. (All answers should be expressed as a PERCENT and to the nearestpercent - no decimal answers; for example, enter 75% or 75 and not 75.1% or 75.1)

	Chemistry (C)	Physics (P)	Biology (B)
Male (M)	90	45	75
Female (F)	30	15	45

1. What is the probability of selecting a male student?

QUESTION 2

1. What is the probability of selecting a student majoring in Physics?

QUESTION 3

1. What is the probability of selecting a female biology student?

QUESTION 4

1. What is the probability of selecting a chemistry student given that the student is male?

QUESTION 5

1. What is the probability of selecting a female student given that the student is majoring in physics?

QUESTION 6

1. What is the probability of selecting a male student or a student majoring in chemistry?

QUESTION 7

1. What is the probability of selecting a male student and a student majoring in chemistry?

QUESTION 8

1. What does P(MP) equal?

QUESTION 9

1. What does P(FB) equal?

QUESTION 10

1. What does P(M/P) equal?

QUESTION 11

1. Use the following table to answer questions 11 to 20.

Each salesperson in a large department store chain is rated with respect to sales potential for advancement. These traits for the 500 salespeople were cross-classified into the following table:

(All answers should be expressed as a PERCENT and to the nearestpercent - no decimal answers; for example, enter 75% or 75 and not 75.1% or 75.1)

	Potential for Advancement
Sales Ability	Fair (F)	Good (G)	Excellent (E)
Below Average (B)	16	12	22
Average (A)	45	60	45
Above Average (X)	93	72	135

What is the probability that the selected salesperson has below average sales ability?

QUESTION 12

1. What is the probability that the selected salesperson has above average sales ability?

QUESTION 13

1. What is the probability that the selected salesperson has average sales ability?

QUESTION 14

1. What is the probability that the selected salesperson has below average sales ability or has a fair potential for advancement?

QUESTION 15

1. What is the probability that the selected salesperson has below average sales ability and has a fair potential for advancement?

QUESTION 16

1. What is the probability that the selected salesperson has a fair potential for advancement, given that they have a below average ability?

QUESTION 17

1. Determine P(G/X)

QUESTION 18

1. Determine P(X/G)

QUESTION 19

1. Determine P(EX)

QUESTION 20

1. Conduct a test of independence using good (G) potential for advancement and average (A) sales ability.

Question A: Determine P(G) =

Question B: Determine P(A) =

Question C: Determine P(AG) (observed value from the table) =

Question D: CalculateP(AG) (expected or calculated value from data in the table) =

Question E: Is Advancement dependent on sales ability? (1 for Yes; 0 for No) =