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CHAPTERSIX

ContinuousDistributions
D

1. Which of the following is NOT a continuous distribution?

E
Term

A.
B.
C.
D.

The uniform distribution is _______________.

2.

E
Term

A.
B.
C.
D.

normal distribution
exponential distribution
uniform distribution
binomial distribution

bimodal
skewed to the right
skewed to the left
symmetric

151

152 Test Bank


A
3. The uniform distribution is also known as the __________.
E
Term

A.
B.
C.
D.

The distribution in the following graph is a ________ distribution.

f(X)

4.

rectangular distribution
gamma distribution
beta distribution
Erlang distribution

0.06
0.05
0.04
0.03
0.02
0.01
0.00
35

40

45

50

55

60 x 65

E
Term

A.
B.
C.
D.

The distribution in the following graph is a ________ distribution.

5.

normal
gamma
exponential
uniform

0.5
0.4
0.3
0.2
0.1
0

E
Term

A.
B.
C.
D.

normal
gamma
exponential
uniform

6.

Chapter6:ContinuousDistributions 153
The distribution in the following graph is a ________ distribution.
1.2
1.0
0.8
0.6
0.4
0.2
0.0
0

5 x

E
Term

A.
B.
C.
D.

If X is uniformly distributed over the interval 8 to 12, inclusively


(8 X 12), then the height of this distribution, f(x), is
__________________.

7.

normal
gamma
exponential
uniform

E
Term

A.
B.
C.
D.

If X is uniformly distributed over the interval 8 to 12, inclusively


(8 X 12), then the mean() of this distribution is
__________________.

8.

M
Calc

M
Calc

A.
B.
C.
D.
9.

1/8
1/4
1/12
1/20

10
20
5
incalculable

If X is uniformly distributed over the interval 8 to 12, inclusively


(8 X 12), then the standard deviation () of this distribution is
__________________.
A.
B.
C.
D.

4
1.33
1.15
2

154 Test Bank


B 10. If X is uniformly distributed over the interval 8 to 12, inclusively
(8 X 12), then the P(9 X 11) is __________________.
M
Calc

A.
B.
C.
D.

If X is uniformly distributed over the interval 8 to 12, inclusively


(8 X 12), then the P(10.0 X 11.5) is __________________.

11.

0.250
0.500
0.333
1.000

M
Calc

A.
B.
C.
D.

D 12.

If X is uniformly distributed over the interval 8 to 12, inclusively


(8 X 12), then the P(13 X 15) is __________________.

M
Calc

A.
B.
C.
D.

If X is uniformly distributed over the interval 8 to 12, inclusively


(8 X 12), then P(X < 7) is __________________.

13.

0.250
0.333
0.375
0.000

0.250
0.500
0.375
0.000

M
Calc

A.
B.
C.
D.

If X is uniformly distributed over the interval 8 to 12, inclusively


(8 X 12), then P(X 11) is __________________.

14.

M
Calc

A.
B.
C.
D.

0.500
0.000
0.375
0.250

0.750
0.000
0.333
0.500

D 15.

Chapter6:ContinuousDistributions 155
If X is uniformly distributed over the interval 8 to 12, inclusively
(8 X 12), then P(X 10) is __________________.

E
Calc

A.
B.
C.
D.

If X is uniformly distributed over the interval 20 to 30, inclusively


(20 X 30), then the height of this distribution, f(x), is
__________________.

16.

0.750
0.000
0.333
0.500

E
Calc

A.
B.
C.
D.

If X is uniformly distributed over the interval 20 to 30, inclusively


(20 X 30), then the mean () of this distribution is
__________________.

17.

1/10
1/20
1/30
1/50

M
Calc

A.
B.
C.
D.

D 18.

If X is uniformly distributed over the interval 20 to 30, inclusively


(20 X 30), then the standard deviation () of this distribution
is __________________.

M
Calc

A.
B.
C.
D.

If X is uniformly distributed over the interval 20 to 30, inclusively


(20 X 30), then P(25 X 28) is __________________.

19.

M
Calc

A.
B.
C.
D.

50
25
10
5

incalculable
8.33
0.833
2.89

0.250
0.500
0.300
1.000

156 Test Bank


A 20. If X is uniformly distributed over the interval 20 to 30, inclusively
(20 X 30), then P(21.75 X 24.25) is __________________.
M
Calc

A.
B.
C.
D.

If X is uniformly distributed over the interval 20 to 30, inclusively


(20 X 30), then P(33 X 35) is __________________.

21.

0.250
0.333
0.375
0.000

M
Calc

A.
B.
C.
D.

If X is uniformly distributed over the interval 20 to 30, inclusively


(20 X 30), then P(X < 17) is __________________.

22.

0.500
0.000
0.375
0.200

M
Calc

A.
B.
C.
D.

If X is uniformly distributed over the interval 20 to 30, inclusively


(20 X 30), then P(X 22) is __________________.

23.

0.500
0.300
0.000
0.250

M
Calc

A.
B.
C.
D.

0.200
0.300
0.000
0.250

D 24.

If X is uniformly distributed over the interval 20 to 30, inclusively


(20 X 30), then P(X 24) is __________________.

M
Calc

A.
B.
C.
D.

0.100
0.000
0.333
0.600

25.

Chapter6:ContinuousDistributions 157
Helen Casner, a labor relations arbitrator, feels that the amount
of time needed to arbitrate a labor dispute is uniformly
distributed over the interval 4 to 24 hours, inclusively (4 X
24). Accordingly, the mean (average) time needed to arbitrate a
labor dispute is ____________.

M
BCalc

A.
B.
C.
D.

D 26.

Helen Casner, a labor relations arbitrator, feels that the amount


of time needed to arbitrate a labor dispute is uniformly
distributed over the interval 4 to 24 hours, inclusively (4 X
24). Accordingly, the probability that a labor dispute will be
arbitrated in 8 hours or less is ____________.

M
BCalc

A.
B.
C.
D.

Helen Casner, a labor relations arbitrator, feels that the amount


of time needed to arbitrate a labor dispute is uniformly
distributed over the interval 4 to 24 hours, inclusively (4 X
24). Accordingly, the probability that a labor dispute will require
between 8 and 16 hours, inclusively, for arbitration is
____________.

27.

20 hours
16 hours
14 hours
12 hours

0.3333
0.6667
0.0000
0.2000

M
BCalc

A.
B.
C.
D.

The normal distribution is an example of _______.

28.

E
Term

A.
B.
C.
D.

0.3333
0.6667
0.4000
0.2000

a discrete distribution
a continuous distribution
a bimodal distribution
an exponential distribution

158 Test Bank


B 29. The total area underneath any normal curve is _______.
E
Term

A.
B.
C.
D.

D 30.

The area to the left of the mean in any normal distribution is


_______.

E
Term

A.
B.
C.
D.

For any normal distribution, any value less than the mean would
have a _______.

31.

equal to the mean


equal to 1
equal to the variance
equal to the coefficient of variation

equal to the mean


equal to 1
equal to the variance
equal to 0.5

E
Term

A.
B.
C.
D.

D 32.

A standardized normal distribution has the following


characteristics:

E
Term

A.
B.
C.
D.

If X is a normal random variable with mean 80 and standard


deviation 5, calculate the Z score if X=88.

33.

positive Z-score
negative Z-score
negative variance
negative probability of occurring

the mean and variance are both equal to 1


the mean and variance are both equal to 0
the mean is equal to the variance
the mean is equal to 0 and the variance is equal to 1

E
Calc

A.
B.
C.
D.

1.8
-1.8
1.6
-1.6

D 34.

If X is a normal random variable with mean 80 and standard


deviation 5, calculate the Z score if X=72.

E
Calc

A. 1.8
B. -1.8
C. 1.6

Chapter6:ContinuousDistributions 159

D 35.

D. -1.6
If X is a normal random variable with mean 80 and standard
deviation 5, calculate the Z score if X=92.

E
Calc

A.
B.
C.
D.

If X is a normal random variable with mean 60 and standard


deviation 2, calculate the Z score if X=57.

36.

2.1
12
1.2
2.4

E
Calc

A.
B.
C.
D.

Suppose X is a normal random variable with mean 60 and


standard deviation 2. A Z score was calculated for a number,
and the Z score is 3.4. What is X?

37.

1.5
2.5
-1.5
-2.5

M
Calc

A.
B.
C.
D.

D 38.

Suppose X is a normal random variable with mean 60 and


standard deviation 2. A Z score was calculated for a number,
and the Z score is -1.3. What is X?

M
Calc

A.
B.
C.
D.

Let Z be a normal random variable with mean 0 and standard


deviation 1. Use the normal tables to find P(Z < 1.3).

39.

E
Calc

A.
B.
C.
D.

63.4
56.6
66.8
53.2

58.7
61.3
62.6
57.4

0.4032
0.9032
0.0968
0.3485

160 Test Bank


D 40. Let Z be a normal random variable with mean 0 and standard
deviation 1. Use the normal tables to find P(1.3 < Z < 2.3).
E
Calc

A.
B.
C.
D.

Let Z be a normal random variable with mean 0 and standard


deviation 1. Use the normal tables to find P(Z > 2.4).

41.

0.4032
0.9032
0.4893
0.0861

M
Calc

A.
B.
C.
D.

D 42.

Let Z be a normal random variable with mean 0 and standard


deviation 1. Use the normal tables to find P(Z < -2.1).

M
Calc

A.
B.
C.
D.

Let Z be a normal random variable with mean 0 and standard


deviation 1. Use the normal tables to find P(Z > -1.1).

43.

0.4918
0.9918
0.0082
0.4793

0.4821
-0.4821
0.9821
0.0179

M
Calc

A.
B.
C.
D.

Let Z be a normal random variable with mean 0 and standard


deviation 1. Use the normal tables to find P(-2.25 < Z < -1.1).

44.

M
Calc

A.
B.
C.
D.

0.3643
0.8643
0.1357
-0.1357

0.3643
0.8643
0.1235
0.4878

45.

Chapter6:ContinuousDistributions 161
Let Z be a normal random variable with mean 0 and standard
deviation 1. Use the normal tables to find P(-2.25 < Z < 1.1).

M
Calc

A.
B.
C.
D.

Let Z be a normal random variable with mean 0 and standard


deviation 1. The 50th percentile of Z is ____________.

46.

0.3643
0.8521
0.1235
0.4878

E
Calc

A.
B.
C.
D.

Let Z be a normal random variable with mean 0 and standard


deviation 1. The 75th percentile of Z is ____________.

47.

0.670
-1.254
0.000
1.280

M
Calc

A.
B.
C.
D.

D 48.

Let Z be a normal random variable with mean 0 and standard


deviation 1. The 90th percentile of Z is ____________.

M
Calc

A.
B.
C.
D.

Let Z be a normal random variable with mean 0 and standard


deviation 1. The 95th percentile of Z is ____________.

49.

M
Calc

A.
B.
C.
D.

0.670
-1.254
0.000
1.280

1.645
-1.254
1.960
1.280

1.645
-1.254
1.960
1.280

162 Test Bank


B 50. Let X be a normal random variable with mean 20 and standard
deviation 4. Find P(X < 25).
M
Calc

A.
B.
C.
D.

Let X be a normal random variable with mean 20 and standard


deviation 4. Find P(X < 17).

51.

0.3944
0.8944
0.1056
0.6056

M
Calc

A.
B.
C.
D.

Let X be a normal random variable with mean 20 and standard


deviation 4. Find P(X < 19).

52.

0.2734
0.7734
0.2266
-0.2734

M
Calc

A.
B.
C.
D.

D 53.

Let X be a normal random variable with mean 20 and standard


deviation 4. Find P(16 < X < 22).

M
Calc

A.
B.
C.
D.

Let X be a normal random variable with mean 20 and standard


deviation 4. The 50th percentile of X is ____________.

54.

E
Calc

A.
B.
C.
D.

0.0987
0.4013
-0.0987
0.5987

0.4672
0.0328
0.1498
0.5328

4.000
20.000
22.698
26.579

55.

Chapter6:ContinuousDistributions 163
Let X be a normal random variable with mean 20 and standard
deviation 4. The 75th percentile of X is ____________.

M
Calc

A.
B.
C.
D.

Let X be a normal random variable with mean 20 and standard


deviation 4. The 90th percentile of X is ____________.

56.

25.126
20.000
22.698
26.579

M
Calc

A.
B.
C.
D.

D 57.

Let X be a normal random variable with mean 20 and standard


deviation 4. The 95th percentile of X is ____________.

M
Calc

A.
B.
C.
D.

D 58.

Let X be a normal random variable with mean 40 and standard


deviation 8. Find P(32 < X < 44).

M
Calc

A.
B.
C.
D.

Let X be a normal random variable with mean 40 and standard


deviation 8. Find P(X < 96).

59.

M
Calc

A.
B.
C.
D.

25.126
20.000
22.698
26.579

25.126
20.000
22.698
26.579

0.4672
0.0328
0.1498
0.5328

1.0000
0.0000
0.0793
0.0575

164 Test Bank


B 60. Let X be a normal random variable with mean 40 and standard
deviation 2. Find P(X < 28).
M
Calc

A.
B.
C.
D.

A Z score is the number of __________ that a value is from the


mean.

61.

1.0000
0.0000
0.2580
0.0472

E
Term

A.
B.
C.
D.

Within a range of Z scores from -1 to +1, you can expect to find


_______ per cent of the values in a normal distribution.

62.

variances
standard deviations
units
miles

E
Term

A.
B.
C.
D.

Within a range of Z scores from -2 to +2, you can expect to find


_______ per cent of the values in a normal distribution.

63.

95
99
68
34

E
Term

A.
B.
C.
D.

The expected (mean) life of a particular type of light bulb is


1,000 hours with a standard deviation of 50 hours. The life of
this bulb is normally distributed. What is the probability that a
randomly selected bulb would last longer than 1150 hours?

64.

M
Calc

A.
B.
C.
D.

95
99
68
34

0.4987
0.9987
0.0013
0.5013

65.

Chapter6:ContinuousDistributions 165
The expected (mean) life of a particular type of light bulb is
1,000 hours with a standard deviation of 50 hours. The life of
this bulb is normally distributed. What is the probability that a
randomly selected bulb would last fewer than 1100 hours?

M
Calc

A.
B.
C.
D.

The expected (mean) life of a particular type of light bulb is


1,000 hours with a standard deviation of 50 hours. The life of
this bulb is normally distributed. What is the probability that a
randomly selected bulb would last fewer than 940 hours?

66.

0.4772
0.9772
0.0228
0.5228

M
Calc

A.
B.
C.
D.

D 67.

Suppose you are working with a data set that is normally


distributed with a mean of 400 and a standard deviation of 20.
Determine the value of X such that 60% of the values are
greater than X.

H
Calc

A.
B.
C.
D.

Suppose you are working with a data set that is normally


distributed with a mean of 400 and a standard deviation of 20.
Determine the value of X such that only 1% of the values are
greater than X.

68.

H
Calc

A.
B.
C.
D.

0.3849
0.8849
0.1151
0.6151

404.5
395.5
405.0
395.0

446.6
353.4
400.039
405

166 Test Bank


C 69. Suppose you are working with a data set that is normally
distributed with a mean of 400 and a standard deviation of 20.
Determine the value of X such that 5% of the values are less
than X.
H
Calc

A.
B.
C.
D.

The E.P.A. has reported that the average fuel cost for a particular
type of automobile is $800 with a standard deviation of $80.
Fuel cost is assumed to be normally distributed. If one of these
cars is randomly selected, what is the probability that the fuel
cost for this car exceeds $900?

70.

432.9
396
367.1
404

M
Calc

A.
B.
C.
D.

The E.P.A. has reported that the average fuel cost for a particular
type of automobile is $800 with a standard deviation of $80.
Fuel cost is assumed to be normally distributed. If one of these
cars is randomly selected, what is the probability that the fuel
cost for this car exceeds $760?

71.

0.3944
0.8944
0.1056
0.6056

M
Calc

A.
B.
C.
D.

The E.P.A. has reported that the average fuel cost for a particular
type of automobile is $800 with a standard deviation of $80.
Fuel cost is assumed to be normally distributed. We would
expect that only 10% of these cars would have an annual fuel
cost greater than _______.

72.

H
Calc

A.
B.
C.
D.

0.1915
0.6915
0.3085
0.8085

820.0
902.4
808.0
812.8

73.

Chapter6:ContinuousDistributions 167
The E.P.A. has reported that the average fuel cost for a particular
type of automobile is $800 with a standard deviation of $80.
Fuel cost is assumed to be normally distributed. If a car is
randomly selected, what is the probability that fuel cost would
be between $700 and $900?

M
Calc

A.
B.
C.
D.

The net profit of an investment is normally distributed with a


mean of $10,000 and a standard deviation of $5,000. The
probability that the investor will not have a net loss is
_____________.

74.

0.7888
0.8944
0.3944
0.1056

M
BCalc

A.
B.
C.
D.

The net profit of an investment is normally distributed with a


mean of $10,000 and a standard deviation of $5,000. The
probability that the investor will have a net loss is _____________.

75.

0.4772
0.0228
0.9772
0.9544

M
BCalc

A.
B.
C.
D.

The net profit of an investment is normally distributed with a


mean of $10,000 and a standard deviation of $5,000. The
probability that the investors net profit will be between $12,000
and $15,000 is _____________.

76.

M
BCalc

A.
B.
C.
D.

0.4772
0.0228
0.9772
0.9544

0.1859
0.3413
0.8413
0.4967

168 Test Bank


C 77. The net profit of an investment is normally distributed with a
mean of $10,000 and a standard deviation of $5,000. The
probability that the investors net gain will be at least $5,000 is
_____________.
M
BCalc

A.
B.
C.
D.

Completion time (from start to finish) of a building remodeling


project is normally distributed with a mean of 200 work-days and
a standard deviation of 10 work-days. The probability that the
project will be completed within 185 work-days is ______.

78.

0.1859
0.3413
0.8413
0.4967

M
BCalc

A.
B.
C.
D.

D 79.

Completion time (from start to finish) of a building remodeling


project is normally distributed with a mean of 200 work-days and
a standard deviation of 10 work-days. The probability that the
project will be completed within 215 work-days is _____.

M
BCalc

A.
B.
C.
D.

Completion time (from start to finish) of a building remodeling


project is normally distributed with a mean of 200 work-days and
a standard deviation of 10 work-days. The probability that the
project will not be completed within 215 work-days is _____.

80.

M
BCalc

A.
B.
C.
D.

0.0668
0.4332
0.5000
0.9332

0.0668
0.4332
0.5000
0.9332

0.0668
0.4332
0.5000
0.9332

81.

Chapter6:ContinuousDistributions 169
Completion time (from start to finish) of a building remodeling
project is normally distributed with a mean of 200 work-days and
a standard deviation of 10 work-days. The probability that the
project will be completed within ____ work-days is 0.99.

M
BCalc

A.
B.
C.
D.

The length of steel rods produced by a shearing process are


normally distributed with = 120 inches and = 0.05 inch.
Industry standards require the rods to be between 119.90 and
120.15 inches, inclusively. The probability that a rod produced
by this process will conform to industry standards is
______________.

82.

211
187
223
200

M
BCalc

A.
B.
C.
D.

The length of steel rods produced by a shearing process are


normally distributed with = 120 inches and = 0.05 inch.
Industry standards require the rods to be between 119.90 and
120.15 inches, inclusively. Any rod longer than 120.15 inches is
re-sheared. The probability that a rod produced by this process
will require re-shearing is ___________.

83.

0.9542
0.9759
0.9974
0.6826

M
BCalc

A.
B.
C.
D.

The length of steel rods produced by a shearing process are


normally distributed with = 120 inches and = 0.05 inch.
Industry standards require the rods to be between 119.90 and
120.15 inches, inclusively. Any rod shorter than 119.90 inches is
scrapped (used in the next melt). The probability that a rod
produced by this process will be scrapped is ___________.

84.

M
BCalc

A.
B.
C.
D.

0.0458
0.0228
0.0013
0.0241

0.0458
0.0228
0.0013
0.0241

170
A

Test Bank
85.

The weights of aluminum castings produced by a process are


normally distributed with = 2 pounds and = 0.10 pound.
Design specifications require the castings to weigh between
1.836 and 2.164 pounds, inclusively. The probability that a
casting produced by this process will conform to design
specifications is _________.

M
BCalc

A.
B.
C.
D.

The weights of aluminum castings produced by a process are


normally distributed with = 2 pounds and = 0.10 pound.
Design specifications require the castings to weigh between
1.836 and 2.164 pounds, inclusively. Any casting weighing less
than 1.836 pounds is scrapped. The probability that a casting
produced by this process will be scrapped, due to under-weight,
is _________.

86.

0.8990
0.4495
0.9974
0.9500

M
BCalc

A.
B.
C.
D.

The weights of aluminum castings produced by a process are


normally distributed with = 2 pounds and = 0.10 pound.
Design specifications require the castings to weigh between
1.836 and 2.164 pounds, inclusively. Any casting weighing more
than 2.164 pounds is re-worked. The probability that a casting
produced by this process will be re-worked, due to over-weight,
is _________.

87.

0.1010
0.4495
0.0505
0.0010

M
BCalc

A.
B.
C.
D.

Let X be a binomial random variable with n=20 and p=.8. If we


use the normal distribution to approximate probabilities for this,
we would use a mean of _______.

88.

E
Calc

0.0010
0.1010
0.0101
0.0505

A. 20
B. 16

C. 3.2
D. 8
C

89.

Chapter6:ContinuousDistributions 171

Let X be a binomial random variable with n=20 and p=.8. If we


use the normal distribution to approximate probabilities for this,
we would use a standard deviation of _______.

M
Calc

A.
B.
C.
D.

Let X be a binomial random variable with n=20 and p=.8. If we


use the normal distribution to approximate probabilities for this,
a correction for continuity should be made. To find the
probability of more than 12 successes, we should find _______.

90.

16
3.2
1.79
0.16

M
Term

A.
B.
C.
D.

Let X be a binomial random variable with n=20 and p=.8. If we


use the normal distribution to approximate probabilities for this,
a correction for continuity should be made. To find the
probability of 12 successes or more, we should find _______.

91.

P(X>12)
P(X>12.5)
P(X>11.5)
P(X<11.5)

M
Term

A.
B.
C.
D.

Let X be a binomial random variable with n=20 and p=.8. If we


use the normal distribution to approximate probabilities for this,
a correction for continuity should be made. To find the
probability of more than 6 but less than 12 successes, we should
find _______.

92.

H
Calc

A.
B.
C.
D.

P(X>12)
P(X>11.5)
P(X>12.5)
P(X<12.5)

P(6<X<12)
P(6.5<X<12.5)
P(6.5<X<11.5)
P(5.5<X<12.5)

172 Test Bank


C 93. Ten percent of all personal loans granted by First Easy Money
Bank are defaulted in the fourth re-payment month. Onehundred four-month old personal loans are randomly selected
from a population of 3,000. The number of defaulted loans in
this sample has a binomial distribution. If we use the normal
distribution to approximate probabilities for this, we would use a
mean of _______.
M
BCalc

A.
B.
C.
D.

According to the U. S. Department of Commerce, 8.6% of the


total civilian employment in Washington state is related to
manufactured exports. A sample of 200 civilian employees in
Washington state is randomly selected. If X is the number of
employees in the sample with jobs related to manufactured
exports, then the mean (expected) value of X is _______________.

94.

30
50
10
300

M
BCalc

A.
B.
C.
D.

8.60
17.20
15.72
3.96

D 95.

According to the U. S. Department of Commerce, 8.6% of the


total civilian employment in Washington state is related to
manufactured exports. A sample of 200 civilian employees in
Washington state is randomly selected. If X is the number of
employees in the sample with jobs related to manufactured
exports, then the standard deviation of X is _______________.

H
Calc

A.
B.
C.
D.

D 96.

According to the U. S. Department of Commerce, 8.6% of the


total civilian employment in Washington state is related to
manufactured exports. A sample of 200 civilian employees in
Washington state is randomly selected. The probability that
between 9 and 15 (inclusively) of the employees have jobs
related to manufactured exports is _______________.

A. 0.9564

8.60
17.20
15.72
3.96

Chapter6:ContinuousDistributions 173

BCalc

B. 0.9435
C. 0.9386
D. 0.9874

The exponential distribution is an example of _______.

97.

E
Term

A.
B.
C.
D.

If arrivals at a bank follow a Poisson distribution, then the time


between arrivals would be _______.

98.

M
Term
B

99.

a discrete distribution
a continuous distribution
a bimodal distribution
an normal distribution

A. normally distributed
B. exponentially distributed
C. a binomial distribution
D. equal to lambda
For an exponential distribution with lambda () equal to 4 per
minute, the mean () is __________.

E
Term

A.
B.
C.
D.

4
0.25
0.5
1

C 100.

For an exponential distribution with lambda () equal to 4 per


minute, the standard deviation () is _______.

M
Term

A.
B.
C.
D.

A 101.

The average time between phone calls is 30 seconds. Assuming


that the time between calls is exponentially distributed, find the
probability that more than a minute elapses between calls.

M
Calc

A.
B.
C.
D.

4
0.5
0.25
1

0.135
0.368
0.865
0.607

174 Test Bank


D 102. The average time between phone calls is 30 seconds. Assuming
that the time between calls is exponentially distributed, find the
probability that less than two minutes elapse between calls.
M
Calc

A.
B.
C.
D.

0.018
0.064
0.936
0.982

B 103.

Suppose that the mean time between arrivals is ten minutes and
that random arrivals are Poisson distributed. Find the probability
that less than 8 minutes pass between two arrivals.

M
Calc

A.
B.
C.
D.

A 104.

Suppose that the mean time between arrivals is ten minutes and
that random arrivals are Poisson distributed. Find the probability
that more than 5 minutes pass between two arrivals.

M
Calc

A.
B.
C.
D.

D 105.

On Saturdays, cars arrive at Sami Schmitt's Scrub and Shine Car


Wash at the rate of 6 cars per fifteen minute interval. The
average interarrival time between cars is _____________.

E
BCalc

A.
B.
C.
D.

0.449
0.551
0.286
0.714

0.607
0.393
0.135
0.865

2.167 minutes
10.000 minutes
0.167 minutes
2.500 minutes

B 106.

Chapter6:ContinuousDistributions 175
On Saturdays, cars arrive at Sami Schmitt's Scrub and Shine Car
Wash at the rate of 6 cars per fifteen minute interval. The
probability that at least 2 minutes will elapse between car
arrivals is _____________.

M
BCalc

A.
B.
C.
D.

0.0000
0.4493
0.1353
2.2255

C 107.

On Saturdays, cars arrive at Sami Schmitt's Scrub and Shine Car


Wash at the rate of 6 cars per fifteen minute interval. The
probability that at least 5 minutes will elapse between car
arrivals is _____________.

M
BCalc

A.
B.
C.
D.

B 108.

On Saturdays, cars arrive at Sami Schmitt's Scrub and Shine Car


Wash at the rate of 6 cars per fifteen minute interval. The
probability that less than 10 minutes will elapse between car
arrivals is _____________.

M
BCalc

A.
B.
C.
D.

D 109.

The exponential distribution is _______.

E
Term

A.
B.
C.
D.

B 110.

The standard normal distribution is also called _______.

E
Term

A.
B.
C.
D.

0.0000
0.4493
0.1353
0.0067

0.8465
0.9817
0.0183
0.1535

symmetric
bimodal
skewed to the left
skewed to the right

an exponential distribution
the Z distribution
a discrete distribution
a finite distribution

176 Test Bank


A 111. The normal distribution is also referred to as _______.
E
Term

112.

A.
B.
C.
D.

the Gaussian distribution


the de Moivre distribution
the exponential distribution
the Poisson distribution

Richard Bowman, Purchasing Manager at Mid-West Medical


Center, is reviewing the annual vendor performance report.
Richard is searching for opportunities to reduce Mid-West's
inventory costs, and pauses to study a table summarizing the
delivery times (elapsed time from placing an order until the
material is received) for two suppliers of surgical dressings and
related materials.
MedcoGauze-R-US
S
u
p
pl
ie
s
17
5

M
BApp

9
2

Discuss the relevance of this information to Richard's objective


of reducing inventory costs. Which vendor should Mid-West
favor? Why? What other factors should Richard consider?
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________

113.

M
BApp

Chapter6:ContinuousDistributions 177
Candace Maldonado, VP of Customer Services at Alamo Auto
Insurance, Inc., is reviewing the performance of the claims
processing division of her company. Her staff reports that the
time required to process claims is normally distributed with =
14 days and = 3 days. Even though Candace has received
several complaint letters from customers alleging lengthy delays
in claims processing, she knows that Alamo out-performs the
industry. (For the industry, processing time is normal with =
25 days and = 5 days.) Moreover, she knows that improving
(decreasing) claims processing time will reduce investment
interest earned by the company -- putting a downward pressure
on corporate profits and an upward pressure on premiums.
Discuss Candace's dilemma. How should she respond to the
complaining customers? Should she share her statistics with
other corporate managers?
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________

178

Test Bank
114. Mone Carlo Simulation analysis of a proposed capital
expenditure indicates that the net present value of the project is
normallly distributed with of $6,000 and a of $4,000.
0.45
0.40

f(x)

0.35
0.30
0.25
0.20
0.15
0.10
0.05
0.00
($10,000) ($5,000)

$0

$5,000

$10,000

$15,000

$20,000

Net Present Value (x)

M
BApp

Discuss the risk and profitability aspects of the proposed capital


expenditure.

115.

Chapter6:ContinuousDistributions 179
Monette Construction, Inc. is preparing to bid on a major
roadway construction project. PERT analysis indicates that
project time is normallly distributed with a of 600 day and a
of 20 days. The Request for Bids states that the project must be
complete within 635 days. The winner of the bid will be assess a
penalty of $1,000 per day for each day the project extends
beyond 635 days.
0.45
0.40

f(x)

0.35
0.30
0.25
0.20
0.15
0.10
0.05
0.00
500

525

550

575

600

625

650

675

700

Project Time (days)

M
BApp

Discuss the risks to Monette Construction assuming it wins the


bid.

Discuss the risk and profitability aspects of the proposed capital


expenditure.

180

Test Bank

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