Question 1

2 out of 2 points

Probability trees are used only to compute conditional probabilities.

Selected
Answer:

Fals

Correct
Answer:

Fals

Question 2
2 out of 2 points

If two events are not mutually exclusive, then P(A or B) = P(A) + P(B)
Selected
Answer:

Fals

Correct
Answer:

Fals

Question 3
2 out of 2 points

Seventy two percent of all observations fall within 1 standard deviation of the
mean if the data is normally distributed.
Selected
Answer:

Fals

Correct
Answer:

Fals

Question 4
2 out of 2 points

Both maximin and minimin criteria are optimistic.

Selected

Fals

Answer:

Correct
Answer:

Fals

Question 5
0 out of 2 points

The maximin approach involves choosing the alternative with the highest or
lowest payoff.
Selected
Answer:

Tru

Correct
Answer:

Fals

Question 6
2 out of 2 points

The Hurwicz criterion is a compromise between the maximax and maximin

criteria.
Selected
Answer:
Correct
Answer:

Tru
e
Tru
e

Question 7
2 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.
Selected
Answer:
Correct
Answer:
Question 8

Fals
e
Fals
e

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 approximate
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?
Selected
Answer:

Correct
Answer:

0.04
75

0.04
75

Question 9
2 out of 2 points

The chi-square test is a statistical test to see if an observed data fit a _________
Selected
Answer:

Correct
Answer:

All of the
above

All of the
above

Question 10
2 out of 2 points

A professor would like to utilize the normal distribution to assign grades such
that 5% of students receive A's. If the exam average is 62 with a standard
deviation of 13, what grade should be the cutoff for an A? (Round your answer.
Selected
Answer:

8
3

Correct
Answer:

8
3

Question 11
2 out of 2 points

The maximin criterion results in the

Selected
Answer:

Correct
Answer:

maximum of the minimum

payoffs

maximum of the minimum

payoffs

Question 12
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. Assum
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

If the group chooses to minimize their maximum regret, what activity will they
choose?
Selected
Answer:

Correct
Answer:

Question 13

Any of the
above

Any of the
above

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:

Selected
Answer:

Correct
Answer:

Leas
e

Leas
e

Question 14
0 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:

Selected
Answer:

Correct
Answer:

Bris
k

Buy

Question 15
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? mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; fo

size:12.0pt; mso-bidi-font-size:11.0pt; font-family:"Times New Roman","serif";
mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} No
Write your answers with two places after the decimal, rounding off as
appropriate.
Selected
Answer:

0.1
3

Correct
Answer:

Evaluation Method

Correct Answer

Exact Match

0.13

Exact Match

.13

Case Sensitivity

Question 16
2 out of 2 points

A brand of television has a lifetime that is normally distributed with a mean of

years and a standard deviation of 2.5 years. What is the probability that a
randomly chosen TV will last more than 8 years? mso-para-marginbottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; mso-bidi-font
size:11.0pt; font-family:"Times New Roman","serif"; mso-bidi-font-family:"Time
New Roman"; mso-bidi-theme-font:minor-bidi;} Note: Write your answers with
two places after the decimal, rounding off as appropriate.
Selected
Answer:

0.3
4

Correct
Answer:

Evaluation Method

Correct Answer

Exact Match

0.34

Exact Match

.34

Case Sensitivity

Question 17
0 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 maximin?

Selected
Answer:

5
0

Correct
Answer:

Evaluation Method
Exact Match

Correct Answer

Case Sensitivity

40

Question 18
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.

If the probability of brisk business is .40, what is the numerical maximum

expected value?
Selected
Answer:

5
7

Correct
Answer:

Evaluation Method
Exact Match

Correct Answer

Case Sensitivity

57

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.
Selected
Answer:

210
0

Correct
Answer:

Evaluation Method

Correct Answer

Exact Match

$2100

Exact Match

$2,100

Exact Match

2100

Exact Match

2,100

Case Sensitivity

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?

Selected
Answer:

5
0

Correct
Answer:

Evaluation Method
Exact Match

Correct Answer
50

Case Sensitivity