Seventy two percent of all observations fall within 1 standard deviation of the mean if the data is normally distributed.
Answer
Selected Answer: False Correct Answer: False
Question 2 2 out of 2 points
If two events are not mutually exclusive, then P(A or B) = P(A) + P(B)
Answer
Selected Answer: False Correct Answer: False
Question 3 2 out of 2 points
Probability trees are used only to compute conditional probabilities.
Answer
Selected Answer: False Correct Answer: False
Question 4 2 out of 2 points
The maximin approach involves choosing the alternative with the highest or lowest payoff.
Answer
Selected Answer: False Correct Answer: False
Question 5 2 out of 2 points
The minimin criterion is optimistic.
Answer
Selected Answer: True Correct Answer: True
Question 6 0 out of 2 points
Using the minimax regret criterion, we first construct a table of regrets. Subsequently, for each possible decision, we look across the states of nature and make a note of the maximum regret possible for that decision. We then pick the decision with the largest maximum regret.
Answer
Selected Answer: True Correct Answer: False
Question 7 2 out of 2 points
Both maximin and minimin criteria are optimistic.
Answer
Selected Answer: False Correct Answer: False
Question 8 2 out of 2 points
The chi-square test is a statistical test to see if an observed data fit a _________. Answer
Selected Answer:
All of the above
Correct Answer:
All of the above
Question 9 2 out of 2 points
Assume that it takes a college student an average of 5 minutes to find a parking spot in the main parking lot. Assume also that this time is normally distributed with a standard deviation of 2 minutes. Find the probability that a randomly selected college student will take between 2 and 6 minutes to find a parking spot in the main parking lot. Answer
Selected Answer:
0.6247 Correct Answer:
0.6247
Question 10 2 out of 2 points
The metropolitan airport commission is considering the establishment of limitations on noise pollution around a local airport. At the present time, the noise level per jet takeoff in one neighborhood near the airport is approximately normally distributed with a mean of 100 decibels and a standard deviation of 3 decibels. What is the probability that a randomly selected jet will generate a noise level of more than 105 decibels?
Answer Selected Answer:
0.0475 Correct Answer:
0.0475
Question 11 2 out of 2 points
A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff table based on whether business is brisk or slow.
The maximin strategy is: Answer
Selected Answer:
Lease Correct Answer:
Lease
Question 12 2 out of 2 points
A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff table based on whether business is brisk or slow.
The maximax strategy is: Answer
Selected Answer:
Buy Correct Answer:
Buy
Question 13 2 out of 2 points
A group of friends are planning a recreational outing and have constructed the following payoff table to help them decide which activity to engage in. Assume that the payoffs represent their level of enjoyment for each activity under the various weather conditions.
Weather Cold Warm Rainy S1 S2 S3
Bike: A1 10 8 6 Hike: A2 14 15 2 Fish: A3 7 8 9
What is the conservative decision for this situation? Answer Selected Answer:
A3 Correct Answer:
A3
Question 14 0 out of 2 points
The maximin criterion results in the Answer
Selected Answer:
maximum of the maximum payoffs Correct Answer:
maximum of the minimum payoffs
Question 15 2 out of 2 points
A brand of television has a lifetime that is normally distributed with a mean of 7 years and a standard deviation of 2.5 years. What is the probability that a randomly chosen TV will last more than 8 years? Note: Write your answers with two places after the decimal, rounding off as appropriate. Answer
Selected Answer: 0.34 Correct Answer: Evaluation Method Correct Answer Case Sensitivity Exact Match 0.34
Exact Match .34
Question 16 2 out of 2 points
A life insurance company wants to update its actuarial tables. Assume that the probability distribution of the lifetimes of the participants is approximately a normal distribution with a mean of 71 years and a standard deviation of 3.5 years. What proportion of the plan participants are expected to see their 75th birthday? Note: Write your answers with two places after the decimal, rounding off as appropriate.
A manager has developed a payoff table that indicates the profits associated with a set of alternatives under 2 possible states of nature.
Alt S1 S2 1 10 2 2 -2 8 3 8 5 Compute the expected value of perfect information assuming that the probability of S2 is equal to 0.4.
Answer
Selected Answer: 6.8 Correct Answer: Evaluation Method Correct Answer Case Sensitivity Exact Match 2.4
Question 18 2 out of 2 points
A group of friends are planning a recreational outing and have constructed the following payoff table to help them decide which activity to engage in. Assume that the payoffs represent their level of enjoyment for each activity under the various weather conditions.
If the probabilities of cold weather (S1), warm weather (S2), and rainy weather (S3) are 0.2, 0.4, and 0.4, respectively what is the EVPI for this situation?
Answer
Selected Answer: 2.8 Correct Answer: Evaluation Method Correct Answer Case Sensitivity Exact Match 2.8
Question 19 2 out of 2 points
Consider the following decision tree.
What is the expected value for the best decision? Round your answer to the nearest whole number. Answer
Selected Answer: 2100 Correct Answer: Evaluation Method Correct Answer Case Sensitivity Exact Match $2100
Exact Match $2,100
Exact Match 2100
Exact Match 2,100
Question 20 2 out of 2 points
The quality control manager for ENTA Inc. must decide whether to accept (a1), further analyze (a2) or reject (a3) a lot of incoming material. Assume the following payoff table is available. Historical data indicates that there is 30% chance that the lot is poor quality (s1), 50 % chance that the lot is fair quality (s2) and 20% chance that the lot is good quality (s3).
What is the numerical value of the minimax regret?
Answer
Selected Answer: 50 Correct Answer: Evaluation Method Correct Answer Case Sensitivity Exact Match 50